Wealthy Avoid New Jersey

[MJ DeMarco]

Study suggests high-tax states pay a stiff price.

More...

 

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[randallg99]

will the last one out get the lights? I used to love NJ, now I can't F*cken stand it

 

[GlobalWealth]

will the last one out get the lights? I used to love NJ, now I can't F*cken stand it

I have a friend from OR who moved to WA on Jan 1 this year. OR raised its state tax rate to almost 12% so he said, cya... He earns about $500k taxable income. Did OR gain or lose by raising the state tax rate? (by the way WA has no state tax).

 

[randallg99]

OR made a lot of headlines with that recent tax hike.

The tax burden on the business owner in NJ is absolutely positively prohibitively expensive to the point my standard of living has been severely affected and then combine it with this downturn I am virtually screwed. I live in one of the most expensive (tax-wise) counties in the country.... (there was an article just posted on this forum from Forbes recently and my county is 2nd most expensive in the country and has been consistently in top 3 in past 5 years)

I was originally planning to move to PA, but now I am looking into other options. I'll basically start over, but starting over with a favorable tax base is much easier than starting uphill so to speak.

all of the states imposing higher taxes are going to see a mass migration. NY is about to experience one of the most dramatic population shifts it ever experienced all because of taxes

 

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[GlobalWealth]

, but now I am looking into other options. I'll basically start over, but starting over with a favorable tax base is much easier than starting uphill so to speak.

outside of the US? there are great tax benefits...

 

[PaulRobert]

The tax burden on the business owner in NJ is absolutely positively prohibitively expensive to the point my standard of living has been severely affected and then combine it with this downturn I am virtually screwed. I live in one of the most expensive (tax-wise) counties in the country.... (there was an article just posted on this forum from Forbes recently and my county is 2nd most expensive in the country and has been consistently in top 3 in past 5 years)

Now not trying to get political but I am leaning more towards this question. With the new governor elected do you think he will be giving more tax cuts for business owners unlike the previous one? Randall if you feel that it is going to be a too political answer, feel free to PM me. I live in NJ as well and will be setting up my LLC shortly.

Thank You

 

[GlobalWealth]

I live in NJ as well and will be setting up my LLC shortly.

Thank You

Don't set it up in NJ.

 

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[randallg99]

Now not trying to get political but I am leaning more towards this question. With the new governor elected do you think he will be giving more tax cuts for business owners unlike the previous one? Randall if you feel that it is going to be a too political answer, feel free to PM me. I live in NJ as well and will be setting up my LLC shortly.

Thank You

if it gets political then the moderators can kick it out.... many of the campaign promises that C Christie made were identical with Corzine's so your guess is as good as mine.

regarding budgets and tax rolls: NJ has a severe deficit and their debt roll is only behind California and NY yet with only half the population.... in other words NJ is screwed unless they improve their tax receivables or drastically cut their budget.

If the "writing is on the wall" I dont see anything but tax increases and the state can't afford to cut taxes at this time.... but it's a delicate situation for CC's new administration because any tax increases will get us and moving the heck outta here.

Globalwealth appears to know how to set up out of state entities if you don't have an accountant who can do it for you....

 

[randallg99]

outside of the US? there are great tax benefits...

I am involved in a project in Panama and highly considered living there. What a really wonderful way of life there.... but at this point it is not an option because we're well planted in this area with friends/family/community, etc...

 

[MJ DeMarco]

Apparently, Oregon has never heard the phrase, "Don't bite the hand that feeds you"

 

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[PaulRobert]

Thanks Randall and Global Wealth for your advice. I am calling up a few CPA's this week from the local area. I like meeting face to face before I start any business negotiations or relationships.

 

[randallg99]

Thanks Randall and Global Wealth for your advice. I am calling up a few CPA's this week from the local area. I like meeting face to face before I start any business negotiations or relationships.

I read on Diane Kennedy's facebook page about a Series LLC that I've inquired with my accountant. I am waiting for an email reply....

 

[randallg99]

there's hope for NJ's financial crisis: newly elected gov Christie is shooting from the hips every which way.... it's going to be a drawn out battle in state assembly, but 2.2billion budget gap calls for drastic actions (if not desperate)

 

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[randallg99]

I read on Diane Kennedy's facebook page about a Series LLC that I've inquired with my accountant. I am waiting for an email reply....

I got info from my accountant and while series LLC makes sense, but the big benefit from this kind of layered protection is an established out of state residency.....

does anyone here have a NEVEDA LLC? how did you establish residency? or is that not required? did your home state ever audit you?

 

[GlobalWealth]

I got info from my accountant and while series LLC makes sense, but the big benefit from this kind of layered protection is an established out of state residency.....

does anyone here have a NEVEDA LLC? how did you establish residency? or is that not required? did your home state ever audit you?

I primarily use NV LLC's for both myself and my clients. Rarely do I register an LLC in any other state except for clients who run an operating business with a physical presence in their home state. Even then, we usually register a NV LLC as the owner of the home state LLC or corp. You don't need to establish residency, you only need a registered agent. If you have 'nexus' in your home state, you will need to register your NV LLC as a foreign LLC in your state.

 

[MJ DeMarco]

Since this thread is a discussion on state taxes, here is a list of states with NO STATE TAXES:

7-states-with-no-income-tax: Personal Finance News from Yahoo! Finance

 

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[randallg99]

thanks for the list, MJ. even though Florda has no income tax, there's high tax rates on other forms of taxes ie death tax, inheritance, sales tax and there's even a sales tax on rent! quality of life is nice in florida, though. I think anyone living there can probably attest to this.

as long as the state is financially stable, there's a good chance taxes will remain at their current level. Of all the states on the list, Texas seems to have best prospects with a young population (less strain on gov't services because of geriatrics)

But now some governors and state legislations have the chutzpah to count on federal bailouts as part of their future budgets! (I've been thinking about moving to PA so I'm keeping an eye their budget problems - tax hikes seem inevitable)

>>Take Pennsylvania Gov. Ed Rendell who last week proposed a $29 billion budget, penciling in $2.8 billion in federal stimulus funds, including $800 million not yet approved by Congress.<<

from: Investors.com - State Budget Woes A Drag On Growth, And Will Get Worse

 

[kurtyordy]

I've been thinking about moving to PA so I'm keeping an eye their budget problems

we would be happy to have you, but why in the world would you do such a thing?

 

[randallg99]

we would be happy to have you, but why in the world would you do such a thing?

I wanna be yo neighor! :0)

grew up in bucks county with straw in my mouth and a dirt bike in tow.... I miss it.

also, my parents still live there as do many of my in-laws and friends.

and the tax burden is significantly less.

A typical 4 bed / 2.5 bath in Hunterdon county has RE tax of 12-15k while Bucks is 6k

The income tax of NJ vs PA will be reduced by 500+/- basis points (depending on profits and distributions structure)

At the end of the year I'll save approx 15k living in PA

 

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[kurtyordy]

I wanna be yo neighor! :0)

grew up in bucks county with straw in my mouth and a dirt bike in tow.... I miss it.

also, my parents still live there as do many of my in-laws and friends.

and the tax burden is significantly less.

A typical 4 bed / 2.5 bath in Hunterdon county has RE tax of 12-15k while Bucks is 6k

The income tax of NJ vs PA will be reduced by 500+/- basis points (depending on profits and distributions structure)

At the end of the year I'll save approx 15k living in PA

I was going to talk to you about corrupt politicians and all that, but I think pa pols learn from nj lol

 

[randallg99]

we would be happy to have you, but why in the world would you do such a thing?

I was going to talk to you about corrupt politicians and all that, but I think pa pols learn from nj lol

biggest running joke are the construction workers on all of the bridges connecting NJ/NY.... they've been working on these bridges since I was young and they just haven't finished whatever they were hired to do.... hell, it didn't take this long to build the damn things!

NJ just finally after many years started to expose the "Pay to Play" practice... yes, that basically means the gov't can legally collect a campaign contribution aka "fee" just to solicit bids/work for gov't

PA has a lot of catching up to do and now that Murtha's gone PA is basically starting at square 1

 

[PaulRobert]

Here is another article showing the impact of what taxing the highest bracket does to businesses including charities.

1999-2004- +$1 Billion Gained In Charitable Donations

2004-2008- -$1 Billion Lost in Charitable Donations/ Around $400 Million per year.

N.J.'s flight of the wealthy hurts charities | NJVoices Guest blog - NJ.com

 

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