Actually it doesn’t, it’s stupid, unfair and unworkable.
Even less rational is the various states doing their own thing. Would you live in a state where the growth in your investments one year is taxed, but you don’t get the taxes refunded when your investments drop the next?
That’s sounds like a tax on zero income.
High income folks already pay the bulk of income taxes. That’s fair, but we can’t continue to run this country on the income of 10% of the citizens. Even they don’t have enough money to bail out our deficits and fix our underfunded social obligations.
We need higher payroll taxes to fund Social Security and Medicare – not much higher though. In fact, the majority could be on employers. This is one of the few – perhaps only – taxes that provide a direct return to nearly everyone.
Let’s face it, we need other higher taxes too.
To me some form of consumption tax is fair, especially if essential items are exempt. But a dozen eggs or winter coat, no tax. Buy a BMW or designer shoes … or house worth more than $1,000,000 – tax.
No higher taxes, just cut spending you say.
QUINNSCOMMENTARY 
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No amount of taxation can cover the increased spending done by this government year over year. You’re not even including state and local governments and their increased spending year over year.
That leaves us with the hard dilemma of curtailing spending while increasing taxation. It’s a hard balancing act and one that will hurt a lot of feelings. The increase in payroll tax won’t be easy on the lower income groups. They don’t have any skin in the game as far as the rest of the taxes needed. The rest of the people will have to cover whatever taxes are increased. Like I said, a lot of hurt feelings. The spending cuts are mandatory if the country is to keep operating. More hurt feelings. We will see how it turns out.
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These big tax folks just won’t take NO for an answer. Any plans to cut sending? They love raising taxes because 48% or so pay no federal income tax and they won’t say no to taxing other folks. Cutting spending could well effect those 48% and then just think of criticism one would get–racist–bigoted–love the rich/hate the poor. Let them eat cake!
Of course maybe the author is so used to taxes going up that it is just a normal reaction to advocate for even more taxes.
Didn’t I read this morning that New Jersey is raising corporate taxes by 2.5% for companies with income above $10 million–a year ago Gov. Phil (kept liquor stores opened and closed gyms during covid/ no pill for stupid) apparently bragged about letting that very tax expire. Gov. Phil wants to dedicate that $ to the transit system no doubt to pay off the unions who gave to his campaign. I guess the $4.5 billion in pandemic relief and the billions more in the infrastructure bill isn’t quite enough. Trust me–it never is enough!
Looks like jobs in NJ have declined by close to 77,000 over the past 6 months and the state trails only California and Nevada and is tied with Illinois for highest rate of unemployment.
Only a matter of time before a few firms head to SC, NC, GA., and Florida. Maybe they will be lured back as folks will miss living in Elizabeth, North Bergen, Union City, and of course Newark.
No entity gets rich by raising taxes. Keep taxes low and control your spending. Same advice investors hear all the time; live within your means–save and invest. The state has insatiable appetite for money the people earn.
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There is legislation pending in NJ that will cut property tax bills in half for seniors earning up to $500,000 and Murphy claims a budget surplus of $9 billion.
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