a guest article by Alex Doctoroff
Governor Phil Murphy is a smart man. He’s a graduate of the Wharton School of Business and an alum of Goldman Sachs where he had an extremely successful career. He earned hundreds of millions of dollars as a result of his business activities. You certainly cannot call him ignorant in matters of economics and business. And yet here he is, year after year trying to get his millionaires’ tax through the legislature. After failing several times, he finally succeeded in 2020. Clearly, he didn’t let a good health crisis go to waste by claiming dire need.
Did the Governor have to institute the millionaires’ tax due to an economic emergency? Absolutely not. As multiple democratic party figures admitted, the tax was budget neutral. The proceeds from the tax will be taken from the richest citizens of the state to pay up to $500 to another group of taxpayers, those families with a child who earn up to $150,000, or singles with a child, who earn up to $75,000. This is a redistribution scheme, which clearly smacks as an election gimmick.
And even though the $500 redistribution will possibly give governor some votes, he knows that it will also hurt New Jersey’s finances. The tax will clearly result in flight of capital and the escape of wealthy people to different states. That flight started a while ago due to a suffocating business environment in New Jersey and an equally terrible taxation climate. Now it will only accelerate. Those wealthy taxpayers who contribute the most to the coffers of the state will leave. What will happen? Jobs will be lost, the economy will lag behind other states and business creation will suffer. And the government, which is never in the habit to reduce spending, will have to raise taxes on the middle class.
Of course, the Governor knows all that. It’s pretty plain. He is not bothered. His goal is to create a situation where he and his party will stay in power forever. Yes, driving away the wealthy will make the economic situation much worse. But it will also increase the number of people dependent on the government for support. And those people will reliably vote Democratic. These voters will keep him, his cronies and his party in power indefinitely. What is good for the state of New Jersey, what is good for the people of New Jersey, what is good for the economy is not good for Governor Murphy and his party. But misery will keep them power in perpetuity.
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