1. Phasing out property taxes for primary homes of New Jersey residents who: a) Work in the state of New Jersey; b) Are retired; c) Serve in the armed forces of the United States.
2. Phasing out property taxes for farms and businesses.
3. New Jersey minimum wage will rise to $18 per hour without health coverage benefits or $15 with HCB. H2B workers to be paid in compliance with federal law.
4. Dividend from S corporations, limited partnerships, and the self-employed with employer identification numbers will be tax-exempt.
5. Profits from C corporations operating with significant presence and in certain areas of New Jersey will also be tax-exempt. This could be one of the most controversial proposals and duly so. But the principal rationale behind it is to attract more large corporations to set up shop in New Jersey. We must ask ourselves: Do we want those jobs in our state or not? If the answer is yes, we will be competing with cheaper labor overseas and even in other states. Therefore we must make sacrifices to attract them.
6. Standard and preferred dividends from C corporations:
Direct dividends from corporations that do not have a presence in New Jersey will be standard dividend in the eyes of the New Jersey Division of Taxation and taxed at a rate of 50% of margin after federal taxes. New Jersey residents owners of stock of those corporations will be liable for 50% of their profits after federal tax. NOTE: Retirement accounts such as IRA and 401-K are excluded from this provision. There would also be a cut-off income below which the provision would not be applied.
As an example: The Swiss corporation Hoffman-La-Roche has a significant operation in New Jersey. It will pay no corporate taxes and it will pay no property taxes for its facilities in Nutley. The dividend it pays to investors will be “preferred dividend” and accordingly taxed as regular income. On the other hand, dividend from General Motors, nominally a U.S. corporation but which is absent from New Jersey and has shown a marked tendency to outsource its production outside the United States, will be categorized as standard and taxed at 50% after U.S. tax.
7. Personal income taxes will increase.
This is an economical platform which is accompanied by a number of other measures (see political program page)
This program could change due to economical events, legal conflict with federal laws, and other unforeseen factors.
Please, refer to chapters: Political Program and Tax Reform. I had also published the 7 points above in a post titled: “Inflation without growth – my remedies” on May 31, 2011.