OT: Property tax relief coming for those over 65
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Gramps can move to South Carolina if he wants to save $. If he wants to retire in NJ he needs to understand all the “benefits” he gets like access to NYC, AC, Philly, the shore, the great mountains of Sussex County where gramps can hike the trails ( after an hour drive) etc. This is kind of like reverse ageism.
If you are a public school teacher you cannot cash in your pension while working.
You have a restricted lump sum option when you retire but even that you can’t take the funds and invest them somewhere else.
If you quit teaching and remove yourself from the pension you can get that cash but staying in the pension is probably better unless you’re tier 5.
Your fact situation assumes the seniors are all in Saddle River and the dude making $20./hr can even swing the down payment and the .mortgage. A lot of seniors may be sitting on hundreds of thousands, but may be home equity. You going to force them to move SC to tap into it? Want to lower the income limits to qualify? Fine. But this does not affect the "working class dude" buying in any way.
I've left public education for private school. So I have some options to play with.
I'm not tier 5, but I am vested.
My initial plan is leave my vested pension alone, dump money into my new matching plan, and continue to fund my other retirement options and just be diversified. I'm a long time from retirement though.
The legislature has just expanded the Senior Freeze program, which reimburses seniors for increases in property taxes over the "base year." The income limit used to be $100,000 -- it is now $150,000. The "base year" is the year of first eligibility, so I assume this means that seniors within the income limit will be reimbursed for future increases in property taxes. Note that this program and Stay New Jersey are conditioned on the state maintaining a specified level of surplus and on other requirements (I think full funding of state pensions is one of them.)
Paterson school closing due to safety concerns after ceiling collapse last month
Built in 1899, the Public School No. 3 building in Paterson is over 100 years old and "will need abatement in order to become usable again."
newjersey.news12.com
NJ has one of the strongest economies in America. Murphy is over 50% approval.
Cry more and move to a state with banned books and AP class, tons of violence and no freedom. You have your pick in the former Confederacy.
So strong people over 65 need tax relief.
Who will pay the offset? People under 65.
Unlike @NotInRHouse, I sympathize with your position -- even though I, as a "senior" (I hate that word; are young people called "junior citizens?") will benefit. The only defense I can give is that the relief is contingent on the continuation of a large budget surplus here in New Jersey, and that, because the credit comes from the state, it will not cause increases in local property taxes. TBH, I think the surplus will not continue for very long, and so the program may be of limited duration.
Isn't the state billions in the hole on pensions?
Any surplus is probably creative accounting.
The state claims to now be making the contribution called for by its actuaries. That is supposed to continue. The size of the hole depends on how the stock market does.
There is indeed a "funny money" component to the surplus. The Covid aid packages gave Federal money to the states to make up for a predicted drop in state tax revenues due to Covid. But the states did just fine, and now have money to spare. I doubt that will continue.
As you know I'm far south of 65, but also realize most people over 65 don't work. Or at least shouldn't be.
You're right . . .but an increasing number of Americans over 65 work. In 2000, less than a quarter of those over 65 worked; now it's over a third. At the same time, the percentage over 16-19 years who work has declined. Those over 65 are actually more likely to have jobs than those aged 16-19. https://www.minneapolisfed.org/arti..., that was,artifact happening at the extremes.
The old joke about chemist, lawyer and the actuary. Someone asked each how 1+1 is. The chemist said 2. The lawyer said generally 2 except for a statute in Humbolt Cty California making it pi when Venus is raising in Sagittarius. The actuary leaned forward and in a quiet voice said "how much do you want it to be?"
I think the point of $500K was to keep these taxpayers in the state.
I believe the idea in part is to keep high earning taxpayers in the state to remain in NJ.
The NJ Tax Rate for a 65+ $500,000. income joint return is approximately $28,000.
This would qualify for a $6,500, Property Tax rebate.
Each 65+ person with $500,000 income that leaves the state would decrease the state income tax receipts.
I assume the decision is to keep 65+ high earners in the state (and give them a property rebate) is to financially subsidize the 65+ property tax rebate plan for lower income earners that are retired.
Yes, the Anchor program will remain in place under the state budget just signed into law by the Governor. Skip the quotes and go to the paragraph under the subheading "increasing affordability." BTW, if you look further down, it appears that there was a substantial increase in funding for higher education, including four year schools like Rutgers.
https://nj.gov/governor/news/news/562024/approved/20240628b.shtml
The logic of simple addition and subtraction is amazing, right?
I hope more of the American public catches onto this simple reasoning whenever any group at the national, state, or local level claims to be the great tax cut champions…without changing spending at all to further mortgage the future of our kids that none of us will see.
Smaller families, families with 2 working parents, larger inheritances (financial & retirement assets, property) for survivors.
From what I have seen, boomers with their own earned monies are bailing out their children
Many younger people that are buying houses these days are using parent money.
As a senior I am for social security, because the government made me pay into it for numerous decades
Do you expect seniors to be against it? , if so, don't make us pay into it In the first place
Exactly, that hits very close to home for me
There is some sort of opinion that boomers are greedy
and sucking,off the system
That goes completely opposite of what I have experienced
and seen with people I know
SS should be optional. Could have done so much more with that money.
There's been financial research over the past few years that show Boomers are not spending as expected. The generation acquired unprecedented wealth, but are essentially "afraid" to spend and run out of it. This underspend means more money going to the kids.
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I've paid in for 56 years and continue to pay in now that I'm receiving benefits. I'm supposed to get nothing? To those who say no "screw you!!"
I friggin wish I were one of those younger people.
The complaint is that we might get more out than we put in
I understand that complaint, but you don't go back on a promise and a plan
What you do is tweak the system going forward for those not retired yet
You have to figure in inflation. SS wasn’t an investment, it is mandatory. And like many others, I’m going to be 50+ years in.
And some entitled punk, earlier said AB’s had it easy?
I bet he will only work remote and wants his job to be ok with a side gig on their time…
My full benefits started a year later than my parent's. My younger sister's benefits will start 6 months later than mine.
Get more than I put in? You think the pittance (matched by the employer) working over Christmas vacation 1968 should merely be returned?
The people that got a real break were our grandparents or great grandparents generation when SS was indexed for inflation in the 70s and the amount subject to withholding fell way short. The system would have gone bankrupt in the 80s before Reagan and O'Neill bought us a generation except for the fact that most of those evil Boomers were working and paying in.
If you want to really dig into it the system had been woefully mismanaged for the last 75 years by both parties. A majority the individuals responsible are long gone. But the flavor of the week (or decade) is to blame the boomers
It’s funny- us boomers worked 60 hrs a week to spoil our millennial and whatever this next group of kids are. And they are blaming us for something- maybe they needed us to kick their asses like our parents did to us.
And I can’t imagine what the next group is going to say about them, oh wait, is “them” allowed? Lol
Two things:
The severe loss of state aid in many suburban districts is certainly not going to help the teacher shortage.
Toms River Regional has lost so many staff members. Jackson as well.
Two of my daughters are teachers. Their main complaint is having to be social worker as well as teacher while having little authority re discipline. Kids who have no respect are not removed from the classrooms. This disrupts the ability of the good kids to learn.
The severe loss of state aid in many suburban districts is certainly not going to help the teacher shortage.
Toms River Regional has lost so many staff members. Jackson as well.
Two of my daughters are teachers. Their main complaint is having to be social worker as well as teacher while having little authority re discipline. Kids who have no respect are not removed from the classrooms. This disrupts the ability of the good kids to learn.
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