From CNBC:
One surprising way to beat the SALT deduction cap: Move to a nearby town
A few years ago Dawn Donaghy and her husband, Raymond, made a decision that many residents in high-tax states make. They wanted to move.
The couple, then residents of Old Tappan, New Jersey, a town less than 30 miles outside of New York City, loved where they lived.
But Raymond’s three children were now adults, and no longer needed the school system. And the taxes that came with that high-quality public school education were high.
The couple considered moving as far as Connecticut, so they were surprised at what they found in their own backyard.
In June 2017, the Donaghys moved to a neighboring town, Saddle River, just about eight miles away.
“We started looking and we could not believe some of the homes that we saw and the tax bracket,” Dawn said. “We just looked at each other in amazement. We’re going to have more property, a larger home and one of them was half the taxes.”
While the couple did not end up choosing that house, they still were able to bring down their tax bill substantially — by about $10,000.
The property taxes they were paying in Old Tappan were around $37,000 at their highest, according to Dawn. Today, they’re paying around $27,000.
More residents of high-tax states are reportedly looking to move in light of changes ushered in by the Tax Cuts and Jobs Act. Notably, that includes a lower cap — $10,000 — for deductions for state and local taxes.
By establishing a hard cap for deductions, Trump has created a massive disincentive to further increase NJ’s property taxes.
Once you hit the magic number, any subsequent increases become very painful.
So lets just continue to sell off assets to fund short-term liabilities, you know, “liquidation”. We already gave the pensions the state lottery. Why not give them the parkway and turnpike too? Hell, give the pensions the entire state, let them run it. At least then, they’ll realize there isn’t a way to afford it.
Public worker pensions are a huge cost for N.J. Here’s what Phil Murphy is considering to pay for them.
Less than two years ago, state lawmakers pledged the New Jersey lottery as an asset to the public-worker pension fund, bringing some relief from its many billions of dollars in unfunded liabilities.
Now, as proceeds from lottery ticket sales are deposited into the pension fund month after month, Gov. Phil Murphy wants to know what other assets belonging to the state — roads, airports, bridges and naming rights, among others — can be sold, leased or otherwise leveraged to help fund government workers’ pensions.
The state Treasury Department is soliciting bids from financial advisers to evaluate the many assets owned by the state, New Jersey Turnpike Authority, South Jersey Transportation Authority and NJ Transit and to recommend which have potential to improve the health of the pension system.
“It’s widely acknowledged that New Jersey faces many fiscal challenges, which won’t be solved by any single magic bullet,” state Treasurer Elizabeth Muoio said in a statement. “While the idea of maximizing the value of state assets has been discussed for many years, little concrete action has ever been taken. At the direction of the governor, we designed this (request for bids) to explore tangible, creative solutions to help maximize the state’s assets in order to minimize the burden to taxpayers.”
What’s the one thing that Murphy isn’t considering? Cutting anything, spending, benefits, or otherwise.
He’s going to magically wish his way to prosperity.
Not to mention, for all his lip flapping on the issue, Murphy will short-change the pension by as much as 40% this year. That’s right folks, the best he can do is make 60% of the recommended payment, kick the can down the road, just like everyone else. So make sure you add the name Murphy to the list, when you talk about all the NJ politicians who cheated and stole from the pension.
Oh, you want some whipped cream on that? Remember, Murphy reversed the Christie decision to lower the anticipated return rate on the pension, meaning his 60% contribution, is actually much smaller when weighted against a more realistic rate of return.
I “assume” the plan would be to pull out of the budget as many items to support the pension, then the future shortfalls will be in the general budget funds so tax increases would be going their rather than to “fund the pensions”..which is a more palatable way to frame the issue..just a thought.
NJ Budget – Largest Expenditures.
31% – Healthcare
19% – Education
18% – Pension
10% – Transportation
7% – Welfare
That makes 85%. Fully funding the pension would require pushing it to 36% or so.
We could eliminate all transportation and welfare expenditures. Or maybe just shut down the entire educational system. Or cut healthcare benefits in half.
Good luck – Cut away.
I’ve found a way to beat property taxes move to rich town .Spring Lake 66c per100 or sea girt ….of course the starting range is 1.2 million with a train in your back yard .
grim, 6:31
“So lets just continue to sell off assets to fund short-term liabilities, you know, “liquidation”.”
You would think a Senior Director at Goldman Sachs would realize the folly in this activity. And for a State that cannot “declare” bankruptcy, we’re going to get all the going broke aspects of bankruptcy without the protections of bankruptcy law. Got to love it.
I found a 1.2 million dollar home in Saddle River with 8,000 in taxes. Two acres and 3500 sq ft.
Now tell me again how the rich are overtaxed. Some people refuse to acknowledge how the rich rip off everyone else. Let’s not even get into the individuals who use false farms to get out of paying taxes to support society.
I just don’t understand how people with endless amounts of money still refuse to pay their taxes honestly. Consumed with greed….it’s all mine mentality.
truesue says:
February 19, 2019 at 8:12 am
I’ve found a way to beat property taxes move to rich town .Spring Lake 66c per100 or sea girt ….of course the starting range is 1.2 million with a train in your back yard .
Rich fleeing nj because of property taxes? Lots of rich are paying less in property taxes in nj than they would be paying in other states with the same property in an equivalent desirable area…..esp florida and texas.
Payroll deductions for unemployment and disability going up when Murphy signs the new family leave act. Another new sneaky backdoor tax goes live today or tomorrow.
Currently, it’s a tax based on the first $34,400 of salary, when he signs the bill it will open it up to the first $131,000 of salary – taken directly out of your pay check.
The actual percentage taxed annually is based on the amount distributed through unemployment, disability, family leave, etc. Given the significant expansion of family leave benefits, I would imagine the percentage would rise.
P3 back again?
Memory lane back in 2006. 12 Billion for a majority stake in Parkway and Turnpike.
https://www.nytimes.com/2006/03/24/nyregion/bill-would-sell-part-of-new-jersey-turnpike-garden-state-parkway.html
Would imagine for most households you’d see around $50-100 increase annually.
Pumps – are you caterwauling again? There is no state income tax in Florida or Texas, and the future liabilities for the residents of those states are reflected in their bond rating and the ability to borrow at lower costs.
If you check the last link I posted the politicians has done nothing in the last two decades to lower the future liabilities, only thing they can come up with is a fire sale.
The plan being pushed by Sweeney is to cut anyone with five years or less from the defined benefit plan. That’s a MASSIVE screw job for anyone who that happens to. Must be worth millions to have the defined benefit. I know a few who that would hit.
Of course we all know that hastens the collapse of the pension fund when you stop adding new blood.
Well…stop being a mouthy douchebag and buy it. Isn’t it about time your wife and child live in a nice neighborhood?
I found a 1.2 million dollar home in Saddle River with 8,000 in taxes. Two acres and 3500 sq ft.
How much do the property taxes jump when you buy it for $1.2 million?
If the bond market isn’t telling you something right now…
Maybe Tawana Brawley and Al Sharpton will come out and defend Jussie Smollett next.
https://www.hannity.com/media-room/bad-company-farrakhan-defends-ilhan-omars-anti-semitic-rant-rails-against-wicked-jews/
https://www.foxnews.com/entertainment/al-sharpton-says-jussie-smollett-should-face-accountability-to-the-maximum-if-attack-was-orchestrated
Slight correction to the article….replacing ‘state’ with the CAPS below….
“Gov. Phil Murphy wants to know what other assets belonging to the PEOPLE — roads, airports, bridges and naming rights, among others — can be sold, leased or otherwise leveraged to help fund government workers’ pensions.”
“Oh, you want some whipped cream on that? Remember, Murphy reversed the Christie decision to lower the anticipated return rate on the pension, meaning his 60% contribution, is actually much smaller when weighted against a more realistic rate of return.”
And, don’t forget, since that decision on 3/1/18 the ten year yield is down, further exacerbating the gap between expected and real returns…
“If the bond market isn’t telling you something right now…”
ExPat, expand please?
All due respect to ExPat, because he is a sharp guy…..he doesn’t understand fcuking dick about fixed income……. but he did stay at a Holiday Inn Express last night……
leftwing says:
February 19, 2019 at 12:02 pm
“If the bond market isn’t telling you something right now…”
ExPat, expand please?
Yes
https://finance.yahoo.com/quote/%5EVIX?p=^VIX
Libturd…look me up in Costa Rica says:
January 30, 2019 at 2:57 pm
Think we’ll see the Vix ever go below 15 again?
So lets just continue to sell off assets to fund short-term liabilities, you know, “liquidation”. We already gave the pensions the state lottery. Why not give them the parkway and turnpike too? Hell, give the pensions the entire state, let them run it. At least then, they’ll realize there isn’t a way to afford it.
He’s not going to realize anything. He’s so close minded it’s impossible. That’s why I voted for him. I think he’s crazy enough to rollback healthcare contributions even though everyone designed their staff and budget around them.
15 VIX, historically, is not even considered ‘low’….
Re: the lead in article topic….’tax arbitrage’ buyer should be careful. That difference in tax rate of 1.0% and 2.x% among towns is usually almost entirely due to the town farming out its students after a certain grade.
Don’t have time to search for it now but there was a move (legislatively?) a few years back to tax these towns that send students to other districts as if they were fully expense loaded.
The government argument was that it was ‘unfair’ that these towns had a lower rate because the were ‘unjustly’ avoiding the administrative expenses associated with full K-12 districts…
This argument, of course, makes zero sense whatsoever. The farming out arrangement was a net positive for both parties. The sending district avoided overhead that could not be fully supported and kept taxes for their residents lower; the receiving district received a substantial per student fee that offset their fixed costs and taxpayer burden.
Of course, doing so sacrificed school admin jobs (much to the chagrin of the powers that be). And also, the proposal to change these arrangements of course did not result in any tax break for the citizens of either the receiving or sending town. Just an increase in overall tax burden of all parties paid to the State.
Anyone looking at any type of tax avoidance in NJ would be well advised to keep one fact in mind…
The State of NJ is a full blown addict in a rampant search for its fix – more taxes. Like any addict in his throes, one would do best to avoid any area near the fix. The addict will stop at nothing to get it.
I think the districts in question were down the shore – Loch Arbor or possibly beach Haven on LBI…
Trump SOTU address in 1995?
https://www.youtube.com/watch?v=swtDFqaXy6Y
https://www.youtube.com/watch?v=ER43fQSUi5k
Chi.
You still watching Ubiquiti?
Yome,
Don’t post that crap here. We are all against illegal immigration. Building 30 foot walls is a huge waste of money cause it’s not going to work nearly as effectively as you think it would. The greater America becomes, the greater the demand for emigration. The greater the demand for emigration, the more creative the emigree will become. The money would be much better spent on making the processing of immigrants easier. And if it’s about a campaign promise? Let Mexico pay for it.
The barriers were built from 1994, under the presidency of Bill Clinton, as part of three larger “operations” to taper transportation of illegal drugs manufactured in Latin America and immigration: Operation Gatekeeper in California, Operation Hold-the-Line[4] in Texas, and Operation Safeguard[5] in Arizona.
97% of border apprehensions (foreign nationals who are caught being in the U.S. illegally) by the Border Patrol in 2010 occurred at the southwest border. The number of Border Patrol apprehensions declined 61% from 1,189,000 in 2005 to 723,840 in 2008 to 463,000 in 2010. The decrease in apprehensions may be due to a number of factors, including changes in U.S. economic conditions and border enforcement efforts. Border apprehensions in 2010 were at their lowest level since 1972.[6] In December 2016 apprehensions were at 58,478, whereas in March 2017, there were 17,000 apprehensions, which was the fifth month in a row of decline.[7]
The Secure Fence Act of 2006 authorized the construction of hundreds of miles of fencing along the Mexican border. The 1,954 miles (3,145 km) border between the United States and Mexico traverses a variety of terrains, including urban areas and deserts.[8] The barrier is located on both urban and uninhabited sections of the border, areas where the most concentrated numbers of illegal crossings and drug trafficking have been observed in the past. These urban areas include San Diego, California and El Paso, Texas.
By May 2011, the U.S. Department of Homeland Security reported completing 649 miles (1,044 km) of fencing (99.5% of the 652 miles planned). The barrier was made up of 299 miles (481 km) of vehicle barriers and 350 miles (560 km) of pedestrian fence.[9] The fencing includes a steel fence (varying in height between 18 and 26 feet) that divides the border towns of Nogales, Arizona in the U.S. and Nogales, Sonora in Mexico.[10] A 2016 report by the Government Accountability Office confirmed that the government had completed the fence by 2015.[11] A 2017 GAO report noted: “In addition to the 654 miles of primary fencing, CBP has also deployed additional layers of pedestrian fencing behind the primary border fencing, including 37 miles of secondary fencing and 14 miles of tertiary fencing.”[12]
As a result of the barrier, there has been a marked increase in the number of people trying to cross areas that have no fence, such as the Sonoran Desert and the Baboquivari Mountain in Arizona.[13] Such immigrants must cross fifty miles (80 km) of inhospitable terrain to reach the first road, which is located in the Tohono O’odham Indian Reservation.[
654 miles of primary fencing + 654 miles of Pedestrian fencing behind primary + 37 miles secondary fencing +14 miles tertiary fencing = 1,359 miles of fencing on 654 miles
Are we calling for waste of money?
You have to do something and building a wall is a start. Letting them cross over and over again, and then paying for the cost to collect and send them back is insanity.
The biggest factor in getting illegals to stop coming here is to stop hiring them. Make the penalty for hiring illegals equivalent to murder. All of a sudden, no illegal immigrants will come here because there is no point….you can’t find work. Simple no-cost option in dealing with illegal immigration.
Good luck getting the “good” business owners out there to stop doing this. Hence, the wall is prob the best option right now.
The problem with all of the wall data is that each one is a study in a vacuum. If you make the southern border impenetrable (and at what REAL cost), then you alter the path for the asylum seekers, the drugs, the terrorists (laughable), and the bad hombres to places where they don’t currently enter. You will next need to harden the seaports and the northern border and the airports. Really, the entire coastline, because they are NOT GOING TO STOP TRYING. This is why this whole effort to make our southern border look like a prison, is a huge waste of money. This wall will serve as no more than an icon to Trump. The French gave us the Statue of Liberty and the Trump’s gave us a YUGE cement wall that screams, “I got mine, Fukc off!”
If Trump cared at all about immigration, he would not be hell bent on deporting dreamers. Case closed.
And to be quite honest with you, there really is no crisis whatsoever. It’s completely manufactured. The crime rates in Anchorage Alaska are higher than that in most border towns. On this one, you have taken the bait. I’m not surprised though. Trump is P.T. Barnum. Want a steak?
Dreamers were bargaining chip that did not work
Democrats showed they cared but not in action
Obama should have ask congress to pass a law when he issued the executive order
This is like the $15 minimum wage to me. It doesn’t really cost much and at the end of the day, it probably helps about as many as it hurts. So I don’t fret. Same with the wall. At the end of the day, it will probably create little benefit and will be a big waste of money. Especially, if we end up with labor shortages, which is a REAL possibility that people are ignoring. If there was a REAL crisis, I’d have less of an issue with it. But my common sensors think the shit going down in Paterson is twice as bad as any M16 gang warfare in say San Diego. And this is spoken from experience.
Want to stop illegal immigration the cheap and sensible way? Provide an easier path to citizenship for those who seek it.
This wall is more about ego than anything. Trump blew a lot of credibility doing the end-around. Heck, half the Republicans are against it. But let’s ignore this.
He did not have to declare Emergency.$3.6B is Only money he can not touch without declaring emergency.He has $4.48B he can spend 80% of what he his asking without declaring Emergency.Why he did? gets me
• Part of the money — $1.38 billion — was already OK’d by Congress in a bill that Trump signed Friday. It’s for only 55 miles of physical barriers.
• $3.6 billion would come from military construction money, according to acting White House Chief of Staff Mick Mulvaney. This is actually the only part of the funding plan that requires a national emergency to be accessed.
• $2.5 billion from the Defense Department’s drug interdiction program. That program covers counter-drug activities and is largely used in activities along the southwest border. Current law allows Trump to tap this fund without an emergency, according to a senior administration official.
• $600 million from the Treasury Department’s drug forfeiture fund. This also can be accessed by existing authority.
5 years as a green card holder then you can apply as US Citizen
How much easier does it need
“Provide an easier path to citizenship for those who seek it.”
1983 Immigration Amnesty did not stop Illegal Border Crossing
I got it yome. I actually know the details. And this 5 billion will do little more than allow him to say, “I told you so.” The true cost of an impenetrable wall will most likely come in around 100 billion. There are huge amounts of land that will require imminent domain to acquire, as well as large areas (mainly along the Rio Grande) where the barrier will be extremely costly as the tides adjust greatly and the border resembles more of an undulating snake than a straight line.
I hope this emergency was worth it. It will be pretty funny when the Democrats use it to say, keep abortion legal as well as 100 other things that are not crisis worthy.
I’m just personally pissed because I love blueberries and they ain’t picking themselves. They are already too expensive.
I also wonder if the cases of food poisoning will increase as cheap produce farmers spend less on sanitation to keep the costs of their produce down now that they’ll have to pay teenagers to pick crops.
Lots of unintended consequences are bound to arise to appease Trump’s ego.
Easy fix.
If you are caught in the US illegally, you are permanently banned from citizenship.
Then streamline the citizenship process.
I’m good with that too Grim.
This wall is the ultimate in silliness. Enforce laws. Don’t build walls to make up for a weak will.
I’m all for guest worker visas based on the ability to support one’s self, deportation for criminal behavior, deportation after 6 months without employment. Ability to apply for citizenship after 10 years continuously in the US based on your ability to support yourself(assets, salary, etc), reasonably looking at the likely hood a person would be a drain on the system. Make immigration truly merit based and allow your most successful guest workers in annually.
Dateline Wayne: The driver behind the wheel of an SUV that killed three people when it smashed into a New Jersey gas station was reportedly overdosing on opioids at the time. Sources told PIX11 the driver, who was not immediately identified, had be revived with Narcan but was otherwise mostly uninjured in the crash.
chifi – What bonds did you buy in December? What bonds do you wish you bought? How are those floaters working out?
All due respect to ExPat, because he is a sharp guy…..he doesn’t understand fcuking dick about fixed income……. but he did stay at a Holiday Inn Express last night……
Has anybody thought outside the (political) box with regard to a stationary wall versus “high tech sensors, drones, etc.” ?
Maybe one creates construction jobs in border states and the other way gets federal money siphoned off to tech firms in California? I think this is the Pelosi jiu-jitsu long con at work. Eventually they come up with the money, and it all goes to their cronies in California.
Conjuring up Dana Carvey’s church lady character, “Ohhhh…you decided to take up with some murderous jihadists and now you would like to be returned to suburbia. Isn’t that special? What would Jesus do? I think he would kill you, but not before covering you with pork. “
https://www.theguardian.com/world/2019/feb/17/us-woman-hoda-muthana-deeply-regrets-joining-isis-and-wants-return-home
I know the US is not supposed to be big on this type of activity, but maybe a televised beheading?
Once one of Isis’s most prominent online agitators who took to social media to call for the blood of Americans to be spilled, Hoda Muthana, 24, claims to have made a “big mistake” when she left the US four years ago and says she was brainwashed into doing so online.
Speaking from al-Hawl refugee camp in northern Syria, while her 18-month-old son played at her feet, Muthana said she misunderstood her faith, and that friends she had at the time believed they were following Islamic tenets when they aligned themselves to Isis.
“We were basically in the time of ignorance […] and then became jihadi, if you like to describe it that way,” she said. “I thought I was doing things correctly for the sake of God.”
^^^ We’re not animals, so give her a choice. Beheading…or convert to Judaism.
I don’t know why we don’t just occupy and preserve Mexico’s Southern border, as a start. Democrats like us going abroad to do that type of crap.
Then press in 1 km into Mexico from the US Southern border and occupy and build a nice wall there. Lots of jobs for Mexico, Illegals get caught well before they hit US soil.
How do you think that East Germany was contained for so long? Kind of out of fashion these days, but I guess you could do some land mines in the middle of the DMZ.
Sanders: “Complete the revolution and kill the most dangerous president in American history.”
OK, he didn’t say “kill”, but he said the rest.
I actually like Sanders being in, because it probably cinches Hillary being out. Not that she won’t have some people murdered, because that what she do.
Mines.
Minefields.
Much more cost effective.
Gov. Murphy signs paid family leave program into law
And just like that, we have another new tax.
New Jersey and you…
https://www.youtube.com/watch?v=6yUsnESf3Ug
grim, 5:55pm
And those types of pseudo-taxes are impossible to reverse. The Republicans could sweep into office in 2020, win every seat at the local and State level, and the second they start talking about reversing Murphy’s tax increases, it is “DON’T YOU DARE TOUCH MY FAMILY LEAVE!!!!”
Family Leave is a benefit offered by my employer, and I’ve seen it get abused by fellow employees often. the most common way is to file for family leave right around Halloween and return mid-January, so as to conveniently miss the busy season but still get a check every week. Another scam they pull is to burn all their vacation & sick time in the first 6 months, then “grandma back in Peru is sick and needs me”…another 8-12 weeks off. We also have serial short term disability abusers, I’m sure Phil will “fix” that too.
If anyone wants to take a flyer on an Indian stock, I’m putting on a position in VEDL, in fact I have been taking some profits in NGLOY to buy VEDL, I see my move as a very complex arbitrage. VEDL and NGLOY (AAL on the London exchange) have a complicated relationship that orbits around Indian billionaire Anil Agarwal, largest shareholder of Anglo American. I’ll leave you to your own research because it is too long and complicated for me to explain here.
I made the same suggestion regarding Mexico: Take a few miles of their turf and push the border back and/or create a mile wide swath of land mines.
1. More time off
Starting in July of next year, workers will be allowed to take 12 weeks of paid time off after childbirth or to care for a sick family member. The current limit is six weeks.
And if workers want to take their leave on an intermittent basis instead of all at once, they will be eligible for 56 days of paid leave in a 12-month period as opposed to the current limit of 42 days.
2. More money
The new law, A-3975, will increase the maximum weekly payment under the leave program to about $860 from $650, Murphy said Tuesday. Up to that limit, workers will be able to receive 85 percent of their weekly wage, up from the current rate of two-thirds of pay.
The enhanced payments also begin in July 2020.
Advocates say the current payouts are too low for most people to live on and thus discourage many people from using the program.
3. More family members and ‘chosen family’ included
Starting immediately, the law makes benefits available to people taking care of a broader variety of family members.
Previously, workers could receive payments to bond with a newborn child or to take care of a sick child, parent, spouse or civil union partner.
Now, benefits are also available for workers caring for siblings, grandparents, grandchildren, parents-in-law and anyone else related by blood or who is the “equivalent” of family.
“That could include a neighbor who you have looked after for years and now needs extra support,” said Sheila Reynertson, a senior policy analyst at New Jersey Policy Perspective, a left-leaning think tank that pushed for the expansion. “It also could include members of the LGBT community who, because of circumstances with their own family, have chosen to develop a strong network of friends, which they call their chosen family.”
The law also allows victims of domestic violence or sexual assault, and family members who care for such victims, to take advantage of the paid family leave program.
This is priceless. Can you smell the abuse?
“He’s going to magically wish his way to prosperity.”
This is exactly what everyone who supports republican tax policy believes. Except of course, those at the very top who know it’s all just redistribution of wealth into their pockets.
“This is priceless. Can you smell the abuse?”
As opposed to the abuse of Amazon and Walmart employees which you applaud.
BTW, did you see that research which showed love of strong men like Trump is directly tied to fragile masculinity? And we all know how much you love Trump.
They don’t get it. Go-getters don’t use this. My wife and I both would never use this because it results in lower pay, we find another way. The most you can collect is 800 a week I think. Good luck paying bills with that. This is bone thrown to the poor and govt revenue, this is not for hardworking professionals that are about making money. You will never use it.
“Advocates say the current payouts are too low for most people to live on and thus discourage many people from using the program.”
As of June 30, 2019, the definition of a covered employer would include those with 30 employees, as opposed to 50 employees, for each calendar day of 20 or more calendar workweeks.
Well, there you go. I don’t know how many small businesses will ever want 30 employees again. Every “new” store will be set up as a “new” business.
Here is my client alert for the new Family Leave and Temp Disability Law changes. Note that I did not focus much on leave because my clients are benefit plans, including private temp disability plans:
“In May, 2018, the NJ legislature took up companion bills, later consolidated into Assembly Bill No. 3975, for the purpose of expanding Family Leave Act and family temporary disability benefits for pregnancy and domestic violence. The bill, most recently amended in January, increases benefits in two ways: First, it expands family temporary disability leave (“FLI”) benefit periods (and the scope of eligible events), and, second, it increases the amount payable for all temporary disability benefits, including those paid to workers injured off the job (“TDI benefits”). This bill has passed the legislature and awaits the Governor’s signature. Although the bill does not call for any new money from employers, it has implications for private plans that must at least match the scope of the state’s Temporary Disability Insurance benefit, and for those private plans that do not require employee contributions.
As initially drafted, the bill increases the maximum FLI benefit period from 6 to 12 weeks during any one-year period and the maximum intermittent FLI leave from 42 to 52 days. FLI benefits are also extended to individuals who take time off from work to assist a family member who is a victim of domestic or sexual violence. In addition, the bill expands the definition of “family members” to include siblings, grandparents, grandchildren, parents-in-law, and others related by blood or by a relationship that is shown to be the equivalent to a family relationship. This last change, individuals whose relationship to the individual taking leave is shown to be equivalent to a family relationship is undefined and could be imputed to include individuals in a committed relationship or even close friends.
The bill also accelerates access to FLI benefits for those taking leave under the Family Leave Act by eliminating the one-week waiting period before the payment of FLI benefits and prohibiting employers from requiring that employees use all their paid leave, up to two weeks, before the payment of FLI benefits.
The original legislation also increases future disability payments for FLI benefits however the latest amendments made the rate changes applicable to all disability benefit payments while pushing back the effective date. For leave periods beginning on or after July 1, 2020, the amount of weekly FLI and TDI benefits is to increase from two-thirds of a claimant’s average weekly wage to 85 percent of that wage, subject to a maximum amount or cap, currently 53 percent of the statewide average weekly wage (“SAWW”). Under the bill, the cap or maximum will also rise, to 70 percent of the SAWW for all workers, effective July 1, 2020. Assuming no change from the 2019 SAWW, this will increase the cap amount from $650 to $859. For private plans that pay benefits to skilled workers that receive higher compensation, the increase in the state maximum amount is the operative figure, and for those plans that pay a set percentage over the state maximum, the increase is incrementally larger.
The bill also imposes new notice requirements on private plan administrators. A notice, in a form approved by the Director, must be continuously and conspicuously posted. Further, employees must receive “personal notice” if a plan is established, at time of hire and within three business days of when an employer “knows or should know” that an employee may need disability benefits.”
15 years ago I sold “family leave” admin software..after training I realized that there were 2 states that you really never had to work once you got a job, based on state leave laws..this was 15 years ago.,..the 2 states ..Oregon and NJ….
So call it what it is; a tax on the productive professional class.
Bruiser,
Only 14% of women in private sector have access to paid leave. You want to talk about abuse but first talk about 25% of new moms have to return to work within 10 days. If the corporate greed system did not have to be dragged to decency then legislation would not be needed. Also, my wife worked for a catholic university that spent millions on new building, athletic center and admin buildings. They bilk kids for 50k a year yet when she got pregnant six months into job we found out she would not get any paid maternity leave for first year and then only 1 week full pay, 60% pay for three weeks. Good christian values at work.
So yeah, if you have a business that is heavy with what we lawyers call “suspect classes” (really, everyone except white males), then you can expect to get hosed. The employment bar is in love with this law.
BTW, my alert doesn’t go into this but the primary expansions for this law were to extend or expand coverage for pregnancy and domestic violence victims. And it is 100% worker paid, so it represents, and indeed was intended to be, another redistribution from out-of-favor demographics to in-favor demographics.
I am trying to figure out how to play this one. Perhaps just before I make a career change, I can take some paid family leave.
Any man taking paternity leave should prepare for new job. There is unwritten rule that you will get sh*ty bonus, sh*tty projects and general lazy tag for taking it. I’ve seen numerous cases of this punishment.
I bought GE Floaters in late October…. right idea, but incorrectly timed…
best floater I’ve bought has been https://www.sec.gov/Archives/edgar/data/19617/000119312516740347/d263038dfwp.htm
trades at slight premium to par
I loaded up on high coupon 21st century fox bonds and get a tender kicker out of Disney….
In this environment I would buy shorter dated (under 6 years) investment grade debt with the highest coupons you can find trading at premiums from issuers that are current subs of larger companies or are about to be taken out (as an example, see above), but don’t do it in situations that have played out…… corporate treasuries are going to try and take advantage of the lower interest rate environment to tender for debt to help near term earnings (pure BS, not economic)….. remember that CEO’s are FORWARD Income Statement focused….. balance sheets be damned…. value destruction be damned….
The Original NJ ExPat says:
February 19, 2019 at 4:34 pm
chifi – What bonds did you buy in December? What bonds do you wish you bought? How are those floaters working out?
All due respect to ExPat, because he is a sharp guy…..he doesn’t understand fcuking dick about fixed income……. but he did stay at a Holiday Inn Express last night……
Well, there you go. I don’t know how many small businesses will ever want 30 employees again. Every “new” store will be set up as a “new” business.
This has already happened on the West coast. My sister lives in Portland and has 3 jobs…all from the same person…3 different businesses. I don’t know the specifics but basically they are avoiding a lot of these types of benefits by doing this. Rather than have her and the other valuable employees at one place, they have them putting in 15 hours per job.
Ottoman,
Do you moan when you finger yourself?
As opposed to the abuse of Amazon and Walmart employees which you applaud.
If those employees are not happy, no one is stopping them from changing jobs, creating a business or getting an education. You have a loser mindset, it fits well with your left-leaning dream of a one size, fits all utopia. You’re illustrating your weakness as a person and even more tragically, as a man. Wipe the makeup streaks off your cheeks and do something productive.
Ottoman is a man? If I knew that I wouldn’t have been so mean to her in the past.
No denying the fact that some people are their own worst enemy.
I used to not think like this, but my mindset has changed. I have to agree, it’s a utopian dream to reach for a society where no one is rich, no one is poor, and everyone has a good job. Why should someone pumping gas make a good living? You are doing nothing.
We should embrace low paying jobs in our society, instead of feeling sorry for these people and trying to help their lot. We should understand the purpose of these low paying jobs. The low paying jobs are the key motivator in our society. It’s what makes ambitious people work harder to improve their lot. It’s always a society’s toughest job, how do you get the masses to work hard? As of now, no better motivator than the realization that if I don’t work hard, I will be stuck in a dead end job going nowhere for the rest of my life.
Fast Eddie says:
February 20, 2019 at 10:10 am
As opposed to the abuse of Amazon and Walmart employees which you applaud.
If those employees are not happy, no one is stopping them from changing jobs, creating a business or getting an education. You have a loser mindset, it fits well with your left-leaning dream of a one size, fits all utopia. You’re illustrating your weakness as a person and even more tragically, as a man. Wipe the makeup streaks off your cheeks and do something productive.
“This should guide us in our thinking about what kind of “soc!alism” is possible today. Governments can tax their own people until they rebel at the ballot box, refuse to pay, or emigrate. They have no power, in our world, to dictate what kinds of goods and services and technologies (green or otherwise) the global marketplace will accept.”
OPINION
BUSINESS WORLD
Airbus’s Lesson for Young Soc!alists
Its A380 debacle shows how hard it is for state planners to outguess markets.
By Holman W. Jenkins, Jr.
Feb. 19, 2019 6:45 p.m. ET
Years ago, when an editor asked me if Boeing would be around to pay off a 100-year bond it had recently offered, I flippantly replied that 100 years was only two product cycles for the company.
I underestimated the duration of its products. The Boeing 747 first flew in 1969 and a freighter version will continue to be built near Seattle at least through 2022. The Boeing 737, which first flew in 1967, faces an order backlog that extends through 2027. An all-new replacement for the commuter workhorse is unlikely to appear until the 2030s.
Which makes all the more anomalous Airbus’s decision to end production of its impressive and giant A380, which has been flying only since 2005.
Soc!alism is currently in vogue. If the word means anything in today’s context, it means projects of unusual government ambition, built on our globally shared capitalist technological and commercial base. The A380 was exactly such a project. Underwritten by massive European government subsidies, the plane was an engineering sensation. Passengers loved the roomy jet. Yet now it’s kaput. What went wrong? Or to phrase the question more usefully, what technological and commercial realities would its sponsors have had to overrule to assure its success?
The list is not a short one. They would have had to overrule the desire of passengers to fly direct, bypassing the crowded hub airports (like London’s Heathrow) for which the A380 was built.
They would have had to overrule the preference of business travelers for frequent departures. With 535 seats to fill, the superjumbo was hopelessly matched against operators offering more convenient schedules by using smaller planes.
Most of all, they would have had to overrule the public’s appetite for lower fares. On a per-seat basis, a new generation of super-efficient twin-engine planes such as the Boeing 787 proved cheaper to operate even though the four-engine A380 could accommodate twice as many customers.
In the end, enough soc!alism could be mobilized to get the plane built, but not enough to make it commercially viable. Europe’s governments would have needed to extend their dominion beyond their own taxpayers who financed it. They would have needed to dictate to the world’s airlines and travelers and even the aerospace industry’s global supplier base, which proved unwilling to develop a new fuel-efficient engine for a plane with a doubtful future.
This should guide us in our thinking about what kind of “soc!alism” is possible today. Governments can tax their own people until they rebel at the ballot box, refuse to pay, or emigrate. They have no power, in our world, to dictate what kinds of goods and services and technologies (green or otherwise) the global marketplace will accept.
When the end came, it came because the A380’s last dedicated customer, the government-backed Emirates Airline of Dubai, gave up on the superjumbo. Planes in pristine condition were lingering unsold on the used-plane market. A 10-year-old jet was recently retired by Singapore Airlines . Now it’s being broken up for scrap, proving once again soc!alism’s knack for making grown men cry.
Boeing’s management was vilified at the time for declining to compete with Airbus to replace its own fabulously successful 747 jumbo jet. But Boeing treated its business like a business. Its forecasts showed the market was likely to evolve in ways unfavorable to another very large passenger plane.
French and German politicians ignored such considerations. They were more interested in making a showy statement about Europe’s technological prowess. Boeing chafed for decades at the subsidies they poured into Airbus. Airbus, for its part, was not above portraying the money U.S. taxpayers spent defending the free world as a backdoor handout to Boeing through its defense business. This debate is likely now to get an ugly second wind if U.S. negotiators insist that Airbus pay back the estimated $20 billion in “launch aid” the A380 failed to recoup (the answer will certainly be no).
The parallel to California’s bullet train hardly needs to be drawn. Gov. Gavin Newsom seems already to be walking back his apparent cancellation of the grossly over-budget project. He may hope that Green New Deal dollars from Washington will become available after 2020 to replace the funds California isn’t willing to provide.
But California voters have already gotten the right message: Billions were poured into the project so former Gov. Jerry Brown wouldn’t have to admit a mistake.
The same consideration for years deterred Airbus from blowing the whistle on the A380, but let’s end on a positive note. Today the soc!ialist miscalculations of our infallible leaders are measured mainly in dollars. This represents a great leap forward over the soc!alist failures that characterized the last century.
Appeared in the February 20, 2019, print edition.
Airbus’s Lesson for Young Soc!alists
Great article. If one reads Atlas Shrugged, they’ll see numerous examples of the failures of a collective ideology.
Chi,
I remember the Dreamliner versus A380 debate and always thought the Airbus backers were on crack. People didn’t want movie theaters, lounges and cas1nos on planes. They wanted cheap airfares. If a composite body could reduce jet fuel usage, then Boeing was definitely going to come out ahead.
I even threw a nice chunk of change into Boeing and did fine with my investment, but would have done significantly better if the lightweight batteries didn’t keep igniting. To this day, I’m not super happy about Boeing’s dependence on so many outside contractors where they lose quality control and are subject to supply bottlenecks, both less likely if kept in house.
None-the-less, it goes to show you how wrong the media pundits tend to be and why so many reports need to be taken with a grain of sand.
Likewise, I spoke with a Tesla owner and a Volt owner recently. You’ll never guess which one thought their car was superior and the technology the better solution for future car owners.
Bystander, 8:55am
I watching the world’s smallest violinist playing an excellent rendition of “My Heart Bleeds For You”. More companies don’t offer this benefit because…of rampant abuse. Clearly you and your gap-toofed soyboy in Drumthwacket feel this is an injustice that must be corrected by allowing the entire populace of NJ to have access to this kind of plan to abuse. How can you a few minutes later declare that men should not take advantage of this wonderful soc14list “benefit” because it may lead to such capitalistic pitfalls as lower bonuses and less advancement? Stand up for your rights as a soyboy and demand everyone get an equal bonus as the top performer! Mutt…
Dedicated to anyone who has ever shopped at the Costco in Edison….
https://www.youtube.com/watch?v=Xm7yvC7y1tU
It has been reported that 50% of Model 3 sales of Tesla’s are in CA. The Tesla perception is easily bifurcated….. in CA, Musk is the second coming of Steve Jobs and walks on water. In the Northeast, Musk is clearly Madoff-Cannabis…..
You tell me….. after “funding secured” and the Joe Rogan interview, you get this headline
https://www.cnn.com/2019/02/20/business/tesla-general-counsel/index.html
…. and the stock is kind of flat-down slightly….
WTF is that?
Libturd, can’t say I didn’t warn you. says:
February 20, 2019 at 11:31 am
Likewise, I spoke with a Tesla owner and a Volt owner recently. You’ll never guess which one thought their car was superior and the technology the better solution for future car owners.
Chevy announced they will cease production of the Volt
Yup!
The Clarion is probably the best of all of them, but it doesn’t have the Musk rat hype.
How about the BOLT D?
https://cars.usnews.com/cars-trucks/best-electric-cars
You guys are nuts to smack talk Musk.
The f*cker launched a Tesla into space with Bowie playing in the background.
Give him a break.
You are an idiot. Are women showing up to work with pillows? Are men falsing birth certs to get paternity time? I am answering your question about how minor cases of abuse get ironed out. FMLA mandates you have a job upon your return, not how much time before fired. I saw cases where boss made sure FMLA users were out a few months later. Problem solved. Not offering benefits like PTO to a new mother shows how truly amoral you are. I bet you were against ADA too. Go back to jer*ing off to Rand now. Nothing more idealistuc than thinking capitalism works that way. In fact, I recently discussed performers with my boss who submitted four people as four since they all work butts off. He was denied and told you can only have one four this year. The bell, what great fairness for performers when management will not spend the money.
I wouldn’t call the Airbus issue “soc1al1sm”, I’d call it an example of the type of inefficiency and waste that comes from government interventionism and “industrial policy”. Incidentally, back when Krugman pretended harder to be an economist, it was his papers on industrial policy (80s and early 90s) that encouraged governments to try to support what they considered “strategic” industries. So yes Airbus has long demonstrated the economic inefficiency of government interventionism and subsidies. Ironically and probably not accidentally, Europe’s largest (by passengers) and most profitable airline, Ryanair, operates an exclusively Boeing fleet.
My wife’s sister has one of those. They drove it down for Thanksgiving from Rochester NY to show it off. Almost didn’t make it. We had that freak cold snap where the temps were in the single digits. Running the heat on those chews up the battery real fast…charging stations are hard to find in NJ too.
Libturd, can’t say I didn’t warn you. says:
February 20, 2019 at 1:34 pm
How about the BOLT D?
https://cars.usnews.com/cars-trucks/best-electric-cars
Ironically I think the rocket business is the only one that’s profitable.
grim says:
February 20, 2019 at 1:37 pm
You guys are nuts to smack talk Musk.
The f*cker launched a Tesla into space with Bowie playing in the background.
Give him a break.
Ottoman should call itself “Ottoperson” to avoid use of hate speech trigger word “man”.
In response to Fast Eddie’s earlier question, Ottoperson does finger itself – namely fisting its arsehole while watching the movie “Che”. The subsequent arse-bleeding then entitles it to take leave from work to deal with its self-inflicted abuse.
Ottoman should call itself “Ottoperson” to avoid use of hate speech trigger word “man”.
In response to Fast Eddie’s earlier question, Ottoperson does finger itself – namely fisting its ars3h0le while watching the movie “Che”. The subsequent arse-bleeding then entitles it to take leave from work to deal with its self-inflicted abuse.
Ottoman should call itself “Ottoperson” to avoid use of hate speech trigger word “man”.
In response to Fast Eddie’s earlier question, Ottoperson does touch itself – namely f1sting its ars3h0le while watching the movie “Che”. The subsequent ars3-bl3eding then entitles it to take leave from work to deal with its self-inflicted abuse.
LMAO!
Libturd…look me up in Costa Rica says:
February 20, 2019 at 1:31 pm
Yup!
The Clarion is probably the best of all of them, but it doesn’t have the Musk rat hype.
https://youtu.be/KgCk3bnvO5Y?t=27
I’d say that the majority of the population has no idea how a marginal tax system works. That’s why they yell and scream when they hear about a 70% marginal tax rate. They literally think they will pay 70% on entire income.
“What if your taxable income is $115,000?
As a Single filer, you moved up to the 24 percent tax bracket so things get a bit more complicated. In this case:
You pay 10 percent on the first $9,525
plus 12 percent of the amount between $9,526 and $38,700
plus 22 percent of the amount between $38,701 and $82,500
plus 24 percent of the amount over $82,501.”
https://blog.taxact.com/how-tax-brackets-work/
And shocker with the accident yesterday…heroin addict from Vernon…shocker!!
Guess what Pumps, if you make a couple million, your average tax rate gets pretty close to your marginal tax rate.
Also, your marginal propensity to work also get hit at the marginal tax rate. Maybe you don’t understand the concept. I notice leftists are now sending out their professors on Bloomberg TV to assure the populace that business leaders would still do whatever they do even with much higher tax rates, because they claim they have proof that they do it for other reasons than money, and so will happily invent and work and move the economy forward, no matter how little they get to keep.
Which reminds me of this quote:
“If you saw Atlas, the giant who holds the world on his shoulders, if you saw that he stood, blood running down his chest, his knees buckling, his arms trembling but still trying to hold the world aloft with the last of his strength, and the greater his effort the heavier the world bore down upon his shoulders – What would you tell him?”
I…don’t know. What…could he do? What would you tell him?”
To shrug.”
Didn’t think of it this way, but it is a good value in comparison to private insurance.
“I have no problem paying $7 more a month to ensure 12 weeks home with my baby or god forbid sick loved one. It’s way cheaper than what I pay in disability insurance ($45 a pay check) that only gives me 6weeks home after giving birth”
That’s what stinks about money, it’s never enough.
You would think 10 million a year would be more than enough, being that if you taxed it entirely at a rate of 70%, you would be left with 3 million, which is more than most make in a lifetime.
Point is, 10 million is a lot of money until you start making 10 million. This is when you start comparing yourself to other people making this much money. You see athletes making 30 million a year, so now you start thinking it’s not enough, and you are not really rich. It never fails, human nature is a b!tch.
At the end of the day, anyone making more than 10 million a year should stop crying about a 70% marginal tax rate on anything over 10 million and instead look in the mirror and realize how fortunate they are to be making that kind of money in any given year.
No One says:
February 20, 2019 at 3:37 pm
Guess what Pumps, if you make a couple million, your average tax rate gets pretty close to your marginal tax rate.
Bystander, you haven’t read any of the articles, have you? You just want to hear your manpleasers flap. “Family Leave” isn’t just for women birthing their spawn, sheethead. And perhaps in the whitebread managementland where you collect a check this isn’t a problem, but when you’re working with…umm…thousands of foreign born workers of dubious legal status, there isn’t much exchange of paperwork when a favorite uncle is supposedly convalescing in a hospital in Chennai. HR finds it easier to just go with the flow. If it were that important to you and your wife, she’d have worked for a company that offered it, or at least she’d have paid attention to the waiting period before the benefit can be realized. Nah, just make everyone else in the State pay for it.
https://youtu.be/wu1UXCdyNo0
“And perhaps in the whitebread managementland where you collect a check this isn’t a problem, but when you’re working with…umm…thousands of foreign born workers of dubious legal status”
Oh, sorry you work with such riff-raff that would abuse the system. I work with more Indians than you’ve threatened from your porch (possibly). They actually save their vacation time to do a month long trip. But, I hear if you get off your ass and achieve a higher education then capitalism can work for you too. Many on the blog say the same.
You don’t even need a higher education to make capitalism work for you. A short stint in trade school is more than enough.
re: Tesla
Hey look with free sunlight this author thinks his Tesla is basically free after 150k miles.
https://www.forbes.com/sites/gregautry/2019/02/20/14000-leagues-under-electric-power-my-tesla-cost-me-almost-nothing/#656be28a62f4
6:39 almost considered getting my welders permit. But ended up back in the classroom. Couldn’t pass up the money.
Free sunlight, free gas, resale value. Come on now. Pretty stupid if you ask me.
if I could do it all over again, I would have seriously considered being a plumber. Work your own hours for yourself. Decent money.