Monday, June 3, 2019

The Collectivist Rationalization for Keeping Overtaxed New Jerseyans from Leaving the State

On 4/15/19, a guest column by Philip Perinelli explained “This is why I’m leaving New Jersey.” There is a fight being waged over whether to impose higher taxes on the rich, a tax that has come to be called the “millionaire's tax.” Opponents argue that the already high income tax on high earners will cause more of the rich to flee NJ. Perinelli argues that it is not only the rich who are feeling the pinch enough to flee the state:

Much has been said about a millionaire’s tax. Some say tax them and they will leave. And they well may. Of course, . . . 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.

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.

On 4/22/19 came another Star-Ledger guest column, Why homeowners should stay in N.J., despite the taxes. A millennial explains, in which Jason DeAlessi chastised Perinelli for his “somewhat selfish reasons, abandoning the very location responsible for your family’s success and wellbeing.” “Furthermore,” lectures DeAlessi, “do you not understand that your wealth has been accrued through the support of millions of your fellow New Jerseyans?”

That last statement, which smacks of tribalist/collectivist overtones--including "You didn't build that"--was cited in yet another Star-Ledger guest column I’m a millennial and a mayor and I can explain why people are leaving New Jersey by Tony Perry. Backing up Perinelli, Perry writes:

An editorial was published recently by a millennial, who does not own a home in New Jersey, yet felt poised to lecture New Jersey homeowners on why they should stay in the state during retirement, despite the exorbitant cost of living and a property tax dilemma, which year after year ranks our state as highest in the nation.

From this incredibly narrow viewpoint, it can be easily understood why the author believes what he wrote. He has not yet experienced the relevant life lessons like buying a home, understanding the physical and financial upkeep and maintenance, along with all the extra costs that come along with it.

His opinions are based on inexperience, assumptions and anger toward success, the last of which has become a favorite talking point of some political leaders. The author questions retirees by stating “Do you not understand that your wealth has been accrued through the support of millions of your fellow New Jerseyans?” The retirement savings of our seniors was not built by some heinous act, it was built on hard work, risk and planning.

Echoing Perinelli, Perry also notes:

Furthermore, he completely fails to appreciate the fact that the people fleeing New Jersey are not just the uber wealthy. They are the school teacher who taught for 30 years and can no longer afford to live in the very state they worked in. The police officer or firefighter who served his or her community for decades. The small business owner who employed people within their community and decides to move to a state that does not crush them in taxes after years of hard work. Businesses that contribute billions of dollars in corporate taxes, employ our residents and provide philanthropy to the thousands of nonprofits across the state are demonized.

I left these comments, somewhat edited and expanded for clarity:

A statement like Jason DeAlessi’s “your wealth has been accrued through the support of millions” shows a person that has no idea how money is earned. To make money means to provide an economic value to people who are willing to pay you. To make money (on any level) requires virtues like thought, self-motivation, and hard work. To accrue wealth (savings) takes virtues like long-term planning and self-discipline. Yes, we can gain a lot from others. But such “support” is not gained by handouts or favor or exploitation, but by providing a value in return--that is, by trade.

DeAlessi apparently means that if you are successful, “You didn’t build that.” But the clerks and the warehouse and airport workers are not special cases of privilege. A job is a trade--a mutually agreed transaction--and job-holders get paid for their services. They contribute economically, and are paid accordingly. This millennial seems to have particular enmity for high earners. But at the end of the day, every productive worker, from clerks to CEOs, earned their keep, are entitled to no more or less, and owe nothing further to each other. In fact, the high earners are the primary movers of the economy. If wealth accruers owe a debt to “millions,” then those millions owe a vastly greater debt to wealth accruers.

DeAlessi’s is a mind poisoned by collectivism, the idea that the group is supreme and individuals are interchangeable cogs subservient to the tribe. But the individual life is the supreme value. NJ is not a tribe with any moral claim on any of us. Every dollar accrued through trade is earned, and each person should selfishly pursue the betterment of himself and his family, even if it means moving out of state to escape confiscatory taxes imposed by politicians his ungrateful “fellow New Jerseyans” elected.

I have often observed that collectivism is a moral escape hatch--an escape from the moral and civil responsibility to respect the rights of others to live by their own judgement. It is lack of respect that underpins Jason DeAlessi’s cruel collectivism.

Related Reading:

The Trader Principle--The Ayn Rand Lexicon







1 comment:

Mike Kevitt said...

The last sentence of this posting, which says, "I have often observed...cruel collectivism.", is an example of the kind of talk we should all be giving, publicly, to nearly all elected politicians, appointees and bureaucrats. We need to give them words and statements which hit them hard right between their eyes.