Philip Perinelli, who lives in North Plainfield in the home above, says we may be afraid of millionaires leaving if we raise taxes on the wealthy, but they're not the only ones who will be leaving if we don't reduce taxes. There are no bargains in this state, he says. Sales tax, auto insurance, the list goes on. We even lost the inexpensive gasoline with the heavy tax increase a few years ago.
I have contemplated writing a letter to the state government of New Jersey, including the Governor, Senate President, Assembly Speaker, and all members of the legislature. The article by Rob Duffey that appeared in the March 27 Star Ledger, titled “Don’t worry about the rich; N.J. needs the millionaires tax” prompted me to write.
Much has been said about a millionaire’s tax. Some say tax them and they will leave. And they well may. Of course, as Mr. Duffey points out, they may not. The fact is that the truly rich can decide to stay or leave. They can afford to do either. Mr. Duffey also points out that the state needs the money. I am not a millionaire. And that is why, while there is much to love about living in this town and this state, my wife and I plan to leave New Jersey in the next several years.
These towns had the highest average property tax bills in New Jersey in 2017.
What is motivating me, and many of my friends, to make this decision is obvious; the high cost of living in New Jersey. We moved from Brooklyn to North Plainfield in 1985. We have lived in the same three bedroom, 1½ bathroom house, raised three sons, and are now empty nesters. In 1985, our property tax bill was $2,805. It was over $10,000 a few years ago, but our house was reassessed, prompting a decrease. Imagine, the only reason for a tax decrease was because the value of your house decreases.
Recently, I looked online at a beautiful four bedrooms, three baths, very affordable house in Nazareth, Pennsylvania. The property tax is just over $3,100. As we don’t need that much house I can only imagine what a house out there comparable in size to ours costs.
Egregious property taxes are just the beginning. For example, while a retiree’s Social Security benefits are not taxed, New Jersey only allows for a retiree to pay no income tax if income is below $100,000. At $100,001, you are taxed on the entire amount. We have worked hard and saved hard over the years, and I am proud that our retirement income will exceed that threshold. As a result, we will get no tax break. Pennsylvania charges no income tax on any retirement income, including pensions, IRA’s, 401K’s, and Social Security.
There are no bargains in this state. Sales tax, auto insurance, the list goes on. We even lost the inexpensive gasoline with the heavy tax increase a few years ago.
While we can afford to stay we simply choose not to. Why pay high property and income taxes, along with all the other high cost taxes and fees when we can relocate a few miles down the road and keep all that money and spend it on well-earned travel? And let’s face it, the cost of living here will not decrease. There will not be a magic bullet that suddenly makes taxes drop. Everyone did a high five when then-Gov. Chris Christie worked to limit property tax increases to 2 percent. But it is still an increase!
On top of that, our state is broke. We never have enough money to pay our bills. Our governor has some interesting progressive ideas, none of which we can afford. There is constant talk about how negotiating new health plans with union members will save tons of money, about regionalization saving the day. I have no confidence that anything will change for the better in the next few years. I have a lot of opinions about what the problems are, questions about why things are done a certain way. I would think that the intelligent people we elect to represent us could figure it out. They haven’t, and time’s up.
In 2017, the Garden State sat atop the throne with an average property tax bill of $8,690.
We have many friends who can afford to stay but are planning to move. We also have friends who simply cannot afford to retire here. Make no mistake, the exodus will not be limited to the top earners. Plenty of fairly successful folks like me will be making the move, too.
Finally, and this is the hard part, I am bitter. Were it not for the way the people of New Jersey are squeezed, were it not for there being greener pastures so close at hand, we would not be moving. So yes, I am bitter. But I know beyond a shadow of a doubt that I will get past that. Were we to stay, then the bitterness would stay with me and increase year after year, as I watch my taxes inexorably increase and my quality of life move in the opposite direction.
Philip Perinelli lives in North Plainfield.