Sorry, I don't think it will help you if you are in probate. The exemption gets raised for those who die in 2017 and then there will be no NJ estate tax for those who die in 2018.
OT - gas prices ahead of the 23 cent tax
- Thread starter RUfinal4
- Start date
Me. But not only for gas.
I help my son at his business in Rahway once a week.
I attend all home RU football & Mens Basketball games.
40 cent difference in gas price, now going to 17 cents.
8.875 sales tax in NYC
Bottles & cans are charged an extra 5 cents deposit each. A case of 70 8oz bottled water at Costco costs an extra $3.50 cents deposit almost
doubling the cost of a case. People buy 8 oz for their kids. A case of beer $1.20.
In NY if you want to buy a case of beer and a bottle of wine you have to go to 2 different stores.
I have a Brokerage checking account with a debit/atm card. I'm charged a fee at any bank in NY. In NJ I go to Quik Chek or PNC bank
and it's no fee for me.
Bridge Toll for SI residents is $6.25 if you cross over 3 times in a month. $10,50 if you only go once or twice.
All said and done, It may no longer be worth it for a lot of people to make the trip after Nov 1st.
If they build out the HBLR it will help. Getting to Jersey City for those who work there can be a nightmare. They want to run the line into Bergen County. Once the Bayonne bridge is complete there is a rumor that the light rail will be run into Staten island. For those living in Monmouth Cty it can be faster to drive through Staten Island to Bayonne vs sitting in traffic on the Trunpike extension.
Hopefully they will run the train from the Meadowlands to Hoboken everyday once the mall opens since it is a perfect park and ride. Again this helps people who work in Hoboken, Weehawkin, and Jersey City to avoid tunnel traffic in the AM.
Most people don't know that there are automatic escalators in the legislation that will virtually ensure the tax goes up 11/1/17 and 11/1/18 as well.
It's not stopping at .23c
The cash flow of the tax increases has already been securitized by Wall Street. The sate will get a lump sum of cash and the security holders get the cash flow from the tax revenue. In order to ensure the viability of the future cash flows, a floor of gallons of gas pumped in October 2016 is established (as people fill up one last time, or NY/PA people on the border come over 10/2016 levels are artificially distorted).
If 10/2017 levels don't hit this floor the escalator kicks in.
Same for 10/2018.
It's not stopping at .23c
The cash flow of the tax increases has already been securitized by Wall Street. The sate will get a lump sum of cash and the security holders get the cash flow from the tax revenue. In order to ensure the viability of the future cash flows, a floor of gallons of gas pumped in October 2016 is established (as people fill up one last time, or NY/PA people on the border come over 10/2016 levels are artificially distorted).
If 10/2017 levels don't hit this floor the escalator kicks in.
Same for 10/2018.
I thought they said they needed to raise the gas tax to pay for repairing roads. The increase isn't even in effect yet, and already they are figuring out ways to use the money for things other than its intended purpose.
Telsa better hurry up and make an affordable car already. They would kill it here.
It turns out that the delivery truck that delivers the products to the grocery store or the gas station is 12mpg....and you are damn well assured that money will be added to the price of the product to cover that.....do you blame yourself for that?
That's a bit of a generalization, I think. Let's take a hypothetical person with an estate of several million dollars or more who wants to stay in NJ. He or she in all likelihood would welcome the trade off of higher gas--and its impact on other goods and services--for the repeal of the NJ estate tax. Not stupid or surreal at all...
no it really doesn't and just today the state they'd raid for other rail projects NOT intended for the what the tax was positioned for. Very Very few will benefit from this tax
Do you honestly believe that a person with a several million dollar estate dies with their affairs stuffed in a shoe box and their heirs then go about filling out a tax return?
OR
do you think maybe the person with the multi million dollar estate has visited an attorney and a CPA and has done some estate planning? set up a few trusts maybe?
Philosophically I'm against any death taxes.
That said, horse trading the elimination of the estate tax (which substantively affects fewer taxpayers) for the increase of the gas tax (affecting everyone who drives) is stupid.
My wife and I have long commutes. On average, we're purchasing 40-50 gallons of fuel per week. I'd need to spend $100,000 on sales tax eligible goods and services to break even on this idiocy.
Of course they do estate planning involving trusts. That doesn't mean you can avoid all death taxes. Everyone I know in that position is very happy with the repeal of the NJ estate tax and believe me, they have done estate planning with well-respected attorneys and CPAs.
It depends;
If it's a big company like Coke or Pepsi, they have their own fueling depots, which get discount rates on fuel because of the volume they buy.
If it's the little Mom and Pop farm that has a box truck, then yes odds are their prices will rise.
I take it you never been behind one of those Frito Lays all Electric Box Trucks? Even Fed-Ex and UPS are using them.
They appear to be lower this morning. Which is a smart business move and everyone will want to fill up one last time before Tuesday.
Not sure what Tesla's plans are besides the cars and their new solar business but Tesla designed locomotive's for the trains would be great. The elimination of the need for wires along the track would open up train routes.
- Last year a truck hit an electric pole in jersey city next to the light rail which disrupted services for 2-3 days affecting 1000's of people.
- The LIRR uses a 3rd rail for electric that has issues in snowy weather affecting service
- Diesel trains are not allowed int he tunnel to NYC which is why some lines don't have 1 seat service to NYC and stop at either Hoboken, Long Branch, Montclair St, or Hoboken.
- if there is an electric grid issue most of our train service would be halted. A Train with a battery to go 300-500 miles can be beneficial for getting people to their travel destination.
This bill is a huge win for anyone with any dough. NJ estate tax is roughly 10-12% on every dollar over $675,000 per person. It is impossible to use estate planning to shelter it all. People have houses, retirement plans, and other assets they need to keep in their names. You can't give it all away. So if you die and leave everything to your wife, and she dies with $1mm in her name, that is just under $40,000 in estate tax on her death. That is a LOT of people in New Jersey.
Even ignoring their savings from the cut to the sales tax, husband and wife would have to drive 4,347,826 miles at 25 mpg to pay more in gas tax than they just saved.
This was a monumental handout to upper middle class and upper class families.
I agree
In addition to a sales tax rollback there is the estate tax.
If you spend 40k a year on sales tax eligible items that can save like $200-300
Let's assume Mom / Dad passes away:
- a 4 bed 3 bath house in suburban NJ can be $400-500k
- a life insurance policy of 100k
- 401k / pension of 200k
- jewelry, cars, furniture and personal items of $30k
That adds up to $730-950k
if the current exemption is 650k then 100k or more can be taxable. At 10% that is 10k.
Now for the 23 cents gas tax:
- avg driver drives 15000 miles a year
- avg vehicle gets 28 mpg (more for cars and less for suvs)
- you will buy 535 gallons of gas per year at an extra cost of about $123
It appears the sales tax roll back alone can cover the additional gas tax.
And yes you may see some goods go up in cost. I have seen sandwich shops raise prices when produce costs went up. Considering the price of gas in NJ will still be cheaper than both NY and CT I can't see how are other costs for goods will be much different from theirs.
The gas tax will reach a dollar a gallon pretty fast when the net revenue they thought they would get doesn't materialize. Maybe it will reduce traffic and help everyone get skinny.
I can recall paying 19 cents a gallon for gas back in the Day.What could the tax if any have been?
That's an awesome analysis
Now discount he tax savings to time zero to let us know what the real savings is...
You're selling a story that says "don't worry about the $1,000 a year you're going to spend for the next 60 years, because when you die in 2076, your heirs will be much better off."
It ain't rocket science.
$1,000 per year?
0.23 per gallon, 25 mpg = $0.0092 per mile for the new tax. So to pay $1k in tax, you'd have to drive 108,696 miles in a year. How many miles you driving? Again, without even accounting for the sales tax cuts, 10,000 miles per year at 25 mpg is $92. Even if the tax triples by 2019, that's $276 per year.
The heirs comment doesn't work either. If you are wealthy enough to die with savings of any kind, then both taxes had the same effect. Both simply reduced the money left over when you die. The effect of the gas tax will be on people who do not make enough to save.
I don't know what you mean by discount it to zero, because if you do that, you'd have to discount the future gas taxes paid too. The important thing is that the numbers aren't even close. People with money are saving big time with the estate and sales tax cuts. 30 years at $276 per year is $8,300. That is less than the estate tax on a taxable estate of $100,000. And that is ignoring 30 years of estate tax savings.
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Your car only burns fuel while it's in motion? And it burns it at the same rate all the time?
My wife and I each work approximately 45 miles from home. In a typical week, we consume 45-50 gallons of gas. Easily
You discount back to zero because you are trading off future benefits (estate tax savings) for present day costs.
I'm not giving up estate tax cash flow as long as I'm alive. I'm not forgoing the use of estate tax savings in an investment today.
The death tax savings is not for the decedent, you can't spend it. It is for the decedent's children. If you have 3 or more children the tax savings isn't that much. 25,000.00 estate savings split 3 ways is only 8,333.00. Your children will pay a lot more than that in gas tax especially when the tax is raised a few years from now.
I bet people like Zapa lost out on a lot of estate tax money. James Gandolfini lost 55% of his estate to the IRS. Chris Christie's dad won't have to pay estate tax it will all go to Chris. Good timing for him.
Take your time until Nov 17. Went thru probate 3 years ago and it cost our family 48000 dollars we had to pay to N.J.
Here's a picture of something similar to that car after being smashed between 2 dump trucks.You don't like this puppy?
http://discussions.texasbowhunter.com/forums/showthread.php?t=96101
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