By Matt Rooney | The Save Jersey Blog
You don’t need me to remind you that New Jersey is one of the most heavily taxed states in the country, Save Jerseyans. It’s the primary reason why you’re a fan of this site.
And while it’s generally difficult for both sides of the aisle to come to an agreement on the all-important tax issue, at least in terms of getting anything constructive accomplished, a legislative effort was formally launched on the State House steps this Monday that’s got bipartisan sponsorship.
The cause capable of making this possible? Repealing the “death tax.”
The bipartisan legislation, sponsored by state senator Steve Oroho, (R-Sussex) and Paul Sarlo (D-Wood Ridge), would repeal the estate tax over a 5-year time span.
The taxpayer advocacy group Americans for Prosperity hosted a press conference on the steps of the state capital building in order to rally support for (and draw attention to) the Oroho/Sarlo bill.
Our friend AFP State Director Daryn Iwiki stood alongside lawmakers and members of various other pro-repeal organizations to call for an end to the tax that’s making it, as sad as it is to say, fat too expensive for most residents to die in New Jersey. Iwicki opened up the conference by saying just that, reminding listeners that the estate tax is playing a significant role in the outward migration of individual taxpayers and businesses to other states.
“Let me be very clear: the estate tax in the state of New Jersey is one of the most regressive, painful things that a family can go through,” Iwicki continued. “Forbes ranks us time and time again the worst place in the country to die in. And we have an opportunity to change that here in the state of New Jersey.”
Sen. Oroho was no less direct, making it very clear why he supports repealing a tax that he sees hurting middle class families during one of the most vulnerable times in their lives; Oroho further noted how the tax drives the wealthy out of the state, taking their businesses and capital with them. All of this translates to less jobs for New Jerseyans (while they’re still alive and kicking).
“We want that capital here. We want that income here,” Oroho said.
There are those who would justify giving the estate tax a longer lease on life by wrongly asserting that it only affects the wealthy (as if that makes it okay). After all, the exemption is $675,000! But as I reminded you yesterday, Save Jerseyans, the reality is that working middle-class families are sometimes the beneficiaries of family-owned businesses that their loved ones worked hard to establish and, upon their death, discover only a huge tax burden left behind. A more common situation? It’s not unusual to find middle class estates pushing $1 million in New Jersey given the surge in property values, especially in North Jersey. A deceased relative living in a modest suburban Bergen home, sitting on decent retirement savings, could easily bust the $675,000 exemption ceiling.
One attendee at yesterday’s event, Dan Pagano, knows about all of this from firsthand experience. He’s the adult son of a small business owner. His parents started a coin operated laundry mat years ago, but the family was recently subjected to the harsh realty of the death tax after his father passed away. Pagano explained how his elderly mother has had an extremely hard time keeping up with the business and that the added burden of this tax has made things almost unbearable.
There’s a moral dimension to all of this that would be notable even if the tax made any economic sense (which it doesn’t). New Jerseyans should not have to fear the confiscation of the fruits of their labor when they die. Neither should their loved ones. No one works their entire life to keep Trenton politicians from having to make hard decisions. If you accept that obvious premise, my friends, then supporting this repeal effort should be one of the easiest decisions you’ll ever make!
Here’s a taste of what you missed:
http://www.youtube.com/watch?v=vX_iAcw3xtI
Assets accumulated with post-tax dollars that appreciated in value but are not yet being liquidated within a family should be taxed EXACTLY WHY?
There are legal ways to shelter these funds, but those methods would be all but unnecessary were this dual (and sometimes treble) taxation be removed from the books.
“to be removed” –