New Jersey is in very bad financial shape, mostly due to stunning mismanagement of its public pension system. Though it has promised the moon, it has chosen never to pay more than $1.9 billion in the plan in any year. Now it needs about three times that to keep the pension system solvent.
Governor Murphy knows he can raise the state income tax rate to levels where his state’s wealthiest residents would likely take their capital elsewhere. But they, like any other home or property owner in the state, cannot move their NJ real estate holdings. Private real property stays and that’s what will eventually get taxed heavily enough to likely reduce home values in the Garden State significantly.
Read the entire article from Steven Malanga of the Manhattan Institute here.