As a follow up to my post, New Jersey: It Used to Smell, Now It Just Stinks
Commenter Dwight adds:
DwightApril 11, 2016 at 11:11 AM
I live in the southern part of New Jersey. My folks live in Massachusetts (aka, "Taxachusetts"). On a visit to my home some years ago, my dad saw my municipal tax bill. "Wow, that's a lot for one year!" he said. When I explained it was my quarterly tax bill, he was flabbergasted. I don't anticipate living here when we retire.And a trader friend emails:
As a NJ taxpayer, for approx 30 years (left for FL 6 years ago,) what is rarely mentioned in David Tepper leaving, etc., is that in addition to exceptionally high income taxes, NJ has the HIGHEST property tax rate, in the Country:
http://www.tax-rates.org/taxtables/property-tax-by- state
-RW
As an aside, NJ is one of the few "Gross Income Tax States," which basically means if you make money in one tax year, they collect their tax. But if you lose money the following tax year, they don't want to hear about it.
That is a huge disadvantage for a trader, who may literally make a lot of money in December; pay taxes; but lose that money in January. In the real world, the trader broke even, except that in NJ the tax paid on the December (prior year profit) is not refunded.
"As an aside, NJ is one of the few "Gross Income Tax States," which basically means if you make money in one tax year, they collect their tax. But if you lose money the following tax year, they don't want to hear about it.
ReplyDeleteThat is a huge disadvantage for a trader, who may literally make a lot of money in December; pay taxes; but lose that money in January. In the real world, the trader broke even, except that in NJ the tax paid on the December (prior year profit) is not refunded."
Which state(s) allow you to go back to a previous year and amend for losses in the current year?
At best, you're allowed to carry the loss forward, and if you happen to make a profit in the following years, you can offset it against the prior loss.
Wow! The living environment has to get really bad before people take action. The two readers mentioned have lived in high tax states for decades and even Tepper lived in NJ for 30(?) years. Its not like these states just recently became full of high taxes and corruption. To paraphrase that great observer of the human condition (and bank robber), Willie Sutton: Political thieves go where the wealth is. And it is hard for real entrepreneurs to know when these thieves have outstripped the wealth creating opportunities.
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