Taxable Talk

New Jersey has been in my view the poster child of what happens when liberal tax and spend runs amuck. Eventually the money runs out in a downturn, and that appears to be happening in the Garden State.

Governor Jon Corzine proposed a budget that he described as "...cold turkey therapy for our troubled spending addiction." The new budget is $33 billion, a $3.2 billion cut from the current year. Three departments will be permanently eliminated. Property tax rebates will be capped based on income and reduced for those who rent. No tax increase was proposed.

However, remember that Governor Corzine also proposed a huge fee increase last week—50% increase in the tolls on New Jersey's toll roads. But those aren't taxes....

In any case, residents of other states will soon be seeing similar stark reality budgets. Most Americans consider themselves overtaxed, and come this Fall there will likely be many government workers looking for employment elsewhere.


News Story: North Jersey.com

States are having tax troubles, and New Jersey is one of those. The Tax Foundation has a great story about how a South Carolina company was forced to pay off New Jersey in order to get a truck released from a weigh station from a "jeopardy assessment." States are trying to make anything appear as if it creates nexus.

Meanwhile, New Jersey has budget problems. Big problems. As the Wall Street Journal reports, "In 1990 the state was $3 billion in debt. Borrowing has since grown at a compound annual rate of about 13%, and now the state is $32 billion in the red. Throw in unfunded pensions and health benefits for retirees, and that number swells to $113 billion, or $3,400 for every man, woman and child in the state. That's three times per capita higher than the national average, making New Jersey the nation's fourth-most indebted state."

Governor Jon Corzine (D) proposes huge toll increases (50% a year in 2010, 2014, 2018, and 2022) but legislators aren't thrilled with the idea. Perhaps the idea of limited government might take hold in the swamplands. Where are the Sopranos when you need them?

Right after Wesley Snipes found out that he'll be sentenced on April 24th, news came out that Wesley Snipes owes $70,000 in back property taxes for his home in Alpine, New Jersey (in suburban Bergen County). The home is in the name of his production company (Kymberlyte Production Services); Snipes sold it to them for $5.6 million in 2002.

The back property tax lien has been sold to Crusader Lien Services. I'd expect this problem to be taken care of, unless Mr. Snipes now also believes that property taxes are illegal....

Hat Tip: Don't Mess With Taxes