N.J. Budget Eyes $1 Billion in New Taxes, Most From Millionaires 2020-08-25 14:37:43.631 GMT
By Elise Young (Bloomberg) -- New Jersey Governor Phil Murphy on Tuesday proposed more than $1 billion in new taxes -- mostly from millionaires -- and $4 billion in borrowing to support spending after the novel coronavirus sent revenue plunging. The governor, a first-term Democrat and retired Goldman Sachs Group Inc. senior director, would make a record pension payment and boost the surplus. He also counts on $1.25 billion in spending reductions during an unprecedented budget cycle, shortened by nine months. The overall spending plan is less bleak than Murphy’s earlier doomsday assessment of New Jersey finances in a state hit harder than most by the virus. He plans no cuts to school and municipal aid and intends to restore funding for the popular Homestead Benefit and Senior Freeze property-tax abatement programs. Though Murphy won a fight in the state’s highest court this month to borrow as much as $9.9 billion to fill revenue holes, he’s now counting on using less than half that amount. Still, if the revenue doesn’t materialize to repay those bonds, New Jerseyans face higher sales and property taxes. “Besides setting off an unprecedented public health crisis, this pandemic also unleashed an economic crisis that can only be rivaled by two other times in our state’s entire 244-year history: the Great Depression and the Civil War,” Murphy said at SHI Stadium at Rutgers University in Piscataway. The open-air venue was chosen over the Trenton statehouse to reduce the chance of viral transmission. Almost 16,000 deaths in New Jersey have a lab-confirmed or probable coronavirus link, and Murphy has yet to reopen indoor dining, gyms and theaters. Since March, 1.4 million unemployment claims have been filed. In June, the jobless rate hit 16.8%, while the Great Recession’s peak was 9.8%. In 12 months during that crisis, sales tax revenue declined by $672 million. In just four months of the pandemic, the amount dropped $505 million. The current fiscal year has a $1.44 billion revenue shortfall, led by sales and use tax declines. Record Payment The fiscal 2021 budget amount, $34.91 billion, is an anomaly: It covers Oct. 1, 2020 through June 30, 2021, nine months that follow a 15-month year. The typical cycle is 12 months. New Jersey shifted the dates as revenue plummeted in response to Murphy’s closing of nonessential businesses on March 21. The governor pledges a $4.89 billion pension contribution, a 32% increase over the current fiscal year. Although a record high, the amount is 20% short of the actuarially required payment, the fallout after previous governors from both parties skipped or shorted contributions, deepening the pension burden. Murphy’s budget also leaves a $2.24 billion fund balance -- 8% higher than that for the extended fiscal year -- “to address the very real possibility of another shutdown due to a resurgence of the novel coronavirus,” according to a budget preview. The budget marks the third time -- fourth, if counting Murphy’s scuttled February plan -- that the governor has proposed a millionaires tax. Each time in the past it was blocked by Senate President Steve Sweeney, a fellow Democrat who has cited New Jersey’s highest-in-the-nation property taxes, averaging $8,767 last year, and other steep living costs. The new marginal tax rate on such earners, 10.75% rather than 8.97%, would apply to every dollar in excess of $1 million. Murphy anticipates raising $390 million, the biggest amount among the proposed new levies. The higher rate already applies to those earning $5 million or more, a change Murphy put into effect for the 2018 tax year. Business Surtax In all, Murphy anticipates $1.02 billion from new taxes, including from millionaires. The budget proposes making permanent a 2.5% corporate business surtax, to raise $210 million; a cigarette-tax boost to $4.35 per pack, for $143.1 million; a higher fee for health-maintenance organizations, for $102.7 million; a surcharge for those with qualified business income greater than $1 million, for $75 million; and higher rates on limousine services, yacht and boat sales and firearm and ammunition taxes, for $26.3 million. For the 12 months ending June 30, 2021, New Jersey will have budgeted $42.57 billion. The fiscal 2021 spending plan that Murphy proposed on Feb. 25, prior to New Jersey’s first reported coronavirus case, was $40.9 billion. To make up for lost revenue, the governor has said the state needs tens of billions of dollars from borrowing, including from the U.S. Federal Reserve’s municipal liquidity fund, plus as-yet-uncertain federal grants. In a ruling issued on Aug. 12, the state Supreme Court said Murphy could borrow as much as $9.9 billion, a defeat for Republicans who had sued, citing constitutional language and a 2004 decision by the court. To contact the reporter on this story: Elise Young in Trenton at [email protected] To contact the editor responsible for this story: Flynn McRoberts at [email protected] To view this story in Bloomberg click here: https://blinks.bloomberg.com/news/stories/QFMIJ9T0AFBF
纽约也不甘示弱。 New York MTA Eyes Deep Cuts to Subway, Commuter Rail Service (1) 2020-08-26 16:21:40.511 GMT By Michelle Kaske (Bloomberg) -- New York’s Metropolitan Transportation Authority may cut subway and bus service by as much as 40% and boost fares by 5% in 2021 if the federal government fails to extend $12 billion of aid to make up for the revenue lost since the pandemic struck. The possible service reductions and fare and toll increases by the nation’s largest mass-transit system would help the MTA balance a budget that’s losing $200 million a week. Its revenue collections are down 40% as people avoid taking subways, buses and commuter rail lines or work from home. MTA officials detailed the potential changes during a special board meeting Wednesday, although the panel isn’t expected to vote on any moves yet. It follows MTA Chief Executive Officer Pat Foye’s warning Tuesday to state lawmakers that the agency -- which is crucial to the economy -- is focused on its survival. The MTA, which had $45.4 billion of debt, as of July 8, is facing an estimated $16 billion deficit through 2024. The scale of the shortfalls have left it pleading for more aid from Washington, where the Republican-led Senate has balked at providing another large round of economic stimulus. Without such aid, the MTA may cut subway and bus service by as much as 40%. That would generate about $880 million of savings annually but increase the additional time between subway trains by as much as 8 minutes. “The federal government must deliver for the MTA,” Foye said during the board meeting. “It is literally our only option for survival. It is shameful and outrageous that the U.S. Senate leadership continues to ignore our needs.” The cutbacks could also heavily affect the commuter railroad lines into the biggest U.S. city. The agency may slash Metro-North Railroad and Long Island Railroad service by as much as 50%, including eliminating one or more Long Island Railroad branches, according to the presentation. The MTA could also delay the start of its East Side Access program, which would bring Long Island Railroad service to Grand Central Station. The MTA was set to increase fares by 4% in 2021 and 2023 but may boost that to a 5% hike. Tolls may increase by an additional $1 in those years. Officials have said large capital projects are also at risk of being delayed. That includes the long-awaited expansion of the Second Avenue subway, updating train signals and creating direct access to Penn Station from Connecticut and New York City suburbs. The financial hit has unnerved bondholders, who have demanded high penalties for the risk of owning the agency’s bonds, causing it to become only the second to borrow from the Federal Reserve’s lending line for state and local governments. MTA bonds due in 2029, some of the most actively traded on Wednesday, sold for an average yield of 3.1%, or about 2.4 percentage points more than those on top-rated securities, according to data compiled by Bloomberg. To contact the reporter on this story: Michelle Kaske in New York at [email protected] To contact the editors responsible for this story: Elizabeth Campbell at [email protected] Michael B. Marois, William Selway To view this story in Bloomberg click here: https://blinks.bloomberg.com/news/stories/QFOH40DWX2PU
By Elise Young (Bloomberg) -- New Jersey Governor Phil Murphy on Tuesday proposed more than $1 billion in new taxes -- mostly from millionaires -- and $4 billion in borrowing to support spending after the novel coronavirus sent revenue plunging. The governor, a first-term Democrat and retired Goldman Sachs Group Inc. senior director, would make a record pension payment and boost the surplus. He also counts on $1.25 billion in spending reductions during an unprecedented budget cycle, shortened by nine months. The overall spending plan is less bleak than Murphy’s earlier doomsday assessment of New Jersey finances in a state hit harder than most by the virus. He plans no cuts to school and municipal aid and intends to restore funding for the popular Homestead Benefit and Senior Freeze property-tax abatement programs. Though Murphy won a fight in the state’s highest court this month to borrow as much as $9.9 billion to fill revenue holes, he’s now counting on using less than half that amount. Still, if the revenue doesn’t materialize to repay those bonds, New Jerseyans face higher sales and property taxes. “Besides setting off an unprecedented public health crisis, this pandemic also unleashed an economic crisis that can only be rivaled by two other times in our state’s entire 244-year history: the Great Depression and the Civil War,” Murphy said at SHI Stadium at Rutgers University in Piscataway. The open-air venue was chosen over the Trenton statehouse to reduce the chance of viral transmission. Almost 16,000 deaths in New Jersey have a lab-confirmed or probable coronavirus link, and Murphy has yet to reopen indoor dining, gyms and theaters. Since March, 1.4 million unemployment claims have been filed. In June, the jobless rate hit 16.8%, while the Great Recession’s peak was 9.8%. In 12 months during that crisis, sales tax revenue declined by $672 million. In just four months of the pandemic, the amount dropped $505 million. The current fiscal year has a $1.44 billion revenue shortfall, led by sales and use tax declines.
Record Payment
The fiscal 2021 budget amount, $34.91 billion, is an anomaly: It covers Oct. 1, 2020 through June 30, 2021, nine months that follow a 15-month year. The typical cycle is 12 months. New Jersey shifted the dates as revenue plummeted in response to Murphy’s closing of nonessential businesses on March 21. The governor pledges a $4.89 billion pension contribution, a 32% increase over the current fiscal year. Although a record high, the amount is 20% short of the actuarially required payment, the fallout after previous governors from both parties skipped or shorted contributions, deepening the pension burden. Murphy’s budget also leaves a $2.24 billion fund balance -- 8% higher than that for the extended fiscal year -- “to address the very real possibility of another shutdown due to a resurgence of the novel coronavirus,” according to a budget preview. The budget marks the third time -- fourth, if counting Murphy’s scuttled February plan -- that the governor has proposed a millionaires tax. Each time in the past it was blocked by Senate President Steve Sweeney, a fellow Democrat who has cited New Jersey’s highest-in-the-nation property taxes, averaging $8,767 last year, and other steep living costs. The new marginal tax rate on such earners, 10.75% rather than 8.97%, would apply to every dollar in excess of $1 million. Murphy anticipates raising $390 million, the biggest amount among the proposed new levies. The higher rate already applies to those earning $5 million or more, a change Murphy put into effect for the 2018 tax year.
Business Surtax
In all, Murphy anticipates $1.02 billion from new taxes, including from millionaires. The budget proposes making permanent a 2.5% corporate business surtax, to raise $210 million; a cigarette-tax boost to $4.35 per pack, for $143.1 million; a higher fee for health-maintenance organizations, for $102.7 million; a surcharge for those with qualified business income greater than $1 million, for $75 million; and higher rates on limousine services, yacht and boat sales and firearm and ammunition taxes, for $26.3 million. For the 12 months ending June 30, 2021, New Jersey will have budgeted $42.57 billion. The fiscal 2021 spending plan that Murphy proposed on Feb. 25, prior to New Jersey’s first reported coronavirus case, was $40.9 billion. To make up for lost revenue, the governor has said the state needs tens of billions of dollars from borrowing, including from the U.S. Federal Reserve’s municipal liquidity fund, plus as-yet-uncertain federal grants. In a ruling issued on Aug. 12, the state Supreme Court said Murphy could borrow as much as $9.9 billion, a defeat for Republicans who had sued, citing constitutional language and a 2004 decision by the court.
To contact the reporter on this story: Elise Young in Trenton at [email protected] To contact the editor responsible for this story: Flynn McRoberts at [email protected]
To view this story in Bloomberg click here: https://blinks.bloomberg.com/news/stories/QFMIJ9T0AFBF
David Tepper一个人上了新州 1%的税， 去年他被逼走去了FLORIDA，NJ 财务大窟窿。
现在只能收millionaire的税了。 不知道有多少millionaire会被逼走。
谁说离开了还要交10年的税。
富人可以用脚投票，最后税还是落到中产头上。
社会主义加州。