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Re: New Payroll taxes
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Home away from home
 
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Easy. The state wanted to delegate blame to the local BOE. It makes little sense to have a local, and powerless, BOE managing things. They can't raise taxes. Their hands are tied in managing expenses - like negotiating with a statewide union such as the NJEA. And the well-meaning parents and educators on the BOE are simply deer caught in the headlights...
Posted on: 2019/4/8 16:40
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Re: New Payroll taxes
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Home away from home
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Actually, that is just one of several reasons why the payroll tax idea is terrible: they already know, before it was approved and before its implementation, that it will not cover the budget shortfall. So, it is a solution that does not really address the problem it is purported to solve. The real problem is profligate spending by the BOE, including sweetheart pensions and salaries, long abetted by a populace that was paying a fraction of this while the rest of the state paid for it. The only REAL solution will involve budget cuts AND a school tax increase. It is a death knell for the re-election hopes of any mayor, which is why so many city administrations have turned a blind eye to the problem. Someone else (was it Brewster?) made a good point when he mused why would the state allow this to continue while they had control of the local BOE? And, why did the state ever return control given the fiscal mismanagement?
Posted on: 2019/4/8 15:51
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Re: New Payroll taxes
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Just wait until the new school payroll tax falls short of estimates and has to be increased.
Runaway as fast as you can. I also wonder about induced demand. Does the hike in benefits encourage more people to go on "disability" than would otherwise not? (I know there are plenty of people suffering with a disability but I bet there a ways to game the system for people that simply don't want to work.) Quote:
Posted on: 2019/4/8 14:32
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Re: New Payroll taxes
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I think the answer is CLEARLY NO.
The combined increase will be about $260, so about $10 per bi-weekly paycheck. It doesn't sound like a lot, but NJ Taxes are like death by a thousand cuts. The part I found interesting is that the total revenue from taxes exceeds, by quite a bit, the amounts being disbursed: in terms of FMLA, they collect 200 MM and disburse half that, while the disability insurance fund collects 566 MM, but pays out 405 MM. So, combined, the state is collecting ~260 MM above what it pays out. Where is that money going? Is it being "banked" (I know, laughable idea) or is it being spent on other things? I also find it somewhat unfair that a higher income person will be taxed much more, but is then capped in how much they can collect. The payments are capped at 85% of a weekly salary equivalent to ~52K / year. The state sees it fit to cap the payments to that level for everyone, but is more than happy to collect taxes on all income without limits.
Posted on: 2019/4/8 13:30
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New Payroll taxes
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Home away from home
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Will it never end?
https://www.nj.com/politics/2019/04/he ... -you-in-higher-taxes.html
Posted on: 2019/4/8 12:28
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