Obamanomics 101

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Important Information: Medicare Surtax for High-Income Employees

As a result of the Patient Protection and Affordable Care Act, effective

January 1, 2013, employers will be required to withhold a 0.9% Additional

Hospital Insurance Tax on High-Income Taxpayers (a.k.a., ³Medicare

Surtax²).

High-Income Taxpayers are defined as those with an annual income of

$200,000 for individuals, $250,000 for joint filers, and $125,000 for

married individuals filing separately. The increase applies only to the

employee portion of the Medicare tax, though the employer is responsible

for withholding and reporting.

Employers should be mindful that the law requires an employer to withhold

the Additional Medicare Tax on wages or compensation it pays to an

employee in excess of $200,000 in a calendar year.

Reconciliation of over or under withholding for joint filers or married

individuals filing separately, is accomplished when the employee files

his/her income tax return.  An employee has the option to have additional

Federal Income Tax withheld on Form W-4 in anticipation of meeting the

wage threshold for the additional Medicare Surtax.*

ADP¹s payroll application has been updated and your company payroll

should reflect the new Medicare Surtax requirements as applicable,

beginning in calendar year 2013.

For more information about the Additional Medicare Tax, you can access

the following links:

€ Refer to the IRS FAQ¹s at

http://www.irs.gov/businesses/small/article/0,,id=258201,00.html

€ Details can also be found on the ADP website at

http://www.adp.com/tools-and-resources/legislative-updates.aspx

We appreciate the opportunity to serve your payroll and tax filing needs.

Sincerely yours,

Your ADP Service Team

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Christie to visit Asbury Park on Monday August 20

Governor Chris Christie will be holding a press conference on the Asbury Park boardwalk tomorrow afternoon, Monday August 20.

Following his meeting the press at 3PM, Christie is scheduled to greet boardwalk patrons and beach goers along the boardwalk and emphasize the importance of clean beaches and waterways to the New Jersey shore economy.

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Governor Christie Calls Special Session To Make Case for Middle-Class Tax Cut

Trenton, NJ – Determined to reverse the path chosen by Democrats in the legislature to impose an $800 million tax hike on New Jersey residents, while holding middle-class tax relief hostage, Governor Chris Christie today called for a special session of the state legislature Monday.

In a letter to Senate President Stephen Sweeney and Assembly Speaker Sheila Oliver, Governor Christie noted the fundamental choice confronting Democrats in the legislature:

“Continue to move forward by letting people, and not government, enjoy more of the earnings produced by their own labor, or take a step back to repeat the days where taxes are the answer to each and every challenge,” said Governor Christie.

Yesterday, for the third year in a row, Governor Christie signed into law a constitutionally balanced budget that delivers on key priorities for the people of New Jersey without raising taxes – despite attempts to inflate spending and raise taxes.

“That budget, which contained billions of dollars in spending, failed to address the single issue that strikes at the heart of our shared interests, and our continued prosperity. Lowering the tax burden imposed on every New Jersey resident is a matter of unique and critical public interest that demands our immediate and full attention,” the Governor wrote to the legislative leaders.

Beginning with his budget address in February, Governor Christie sought to reach agreement on tax relief and, for a time, received numerous commitments from legislative Democrats to not raise taxes – only to have those commitments pulled back in favor of a massive tax increase. The Governor said in his letter today that he seeks to address both houses of the legislature to communicate his objections to bills which together betray those promises.

The Governor closed his letter to Senate President Sweeney and Speaker Oliver by noting the impending celebration Wednesday of Independence Day. It was 236 years ago that the forefathers recorded in the Declaration of Independence that they had united against the “history of repeated injuries and usurpations” imposed by government, including the imposition of taxes “without our consent.”

“Today, our citizens deserve the same opportunity to decide whether a new direction, embodied in the recommendations I will share, is needed to end the cycle of tax increases that has paralyzed our State’s growth, and stunted our citizens’ progress,” the Governor said.

“When you convene this Monday at 11:00 a.m., I will ask for the opportunity to address your members on the two paths that face all who are fortunate enough to serve as elected representatives.”

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Governor Chris Christie Announces Long-Term Partnership with Amazon.com to Open Two New Jersey Distribution Facilities

Amazon Making Plans to Open Two New Jersey Facilities, Expected to Create Thousands of Jobs, Including 1,500 Permanent Jobs

Trenton, NJ – Joined by company representatives, Governor Chris Christie announced today the beginning of a long-term partnership with global e-commerce leader Amazon.com starting with the company’s plans to begin construction on two state-of-the-art fulfillment distribution center facilities in the state in 2013. Today’s announcement establishes a future partnership committed to growing New Jersey’s economy and creating quality jobs. These distribution facilities are expected to result in at least $130 million in capital investment, along with the expected creation of several thousand quality jobs for our families, including plans for over 1,500 full-time jobs, as well as thousands of full-time temporary, seasonal and construction jobs. The investment commitment is contingent on the receipt of economic development incentives that make such investment economically viable for both the State of New Jersey and the company.

“In yet another positive sign in our state’s economic and job growth, I’m pleased Amazon is committed to helping New Jersey grow and create quality jobs,” said Governor Christie. “After months of hard work and collaboration, Amazon has joined the long list of companies that recognize New Jersey’s economic and business climate is improving. We’ve created an atmosphere of job creation, growth and investment, which is why we have taken another important step toward placing quality, good-paying job opportunities within reach of our families.”

Separately, Governor Christie also announced today that, working together, the Administration and Amazon have reached an agreement that provides certainty with regard to Amazon’s obligation to collect sales tax on purchases by New Jersey consumers. This agreement culminated after months of hard work and cooperation among Amazon staff, the Governor’s Office, the Treasury Department’s Division of Taxation, and legislative staff.

According to the agreement between the New Jersey Division of Taxation and Amazon, the company will voluntarily begin to collect and remit New Jersey sales tax by July 1, 2013, or as of the effective date of federal legislation concerning state sales tax collection from out-of-state retailers, whichever is earlier. This means New Jerseyans will no longer have the required responsibility of tracking and reporting use tax owed on their online purchases from Amazon, and the State will receive the sales tax it is due to fund programs and services for its residents.

The Christie Administration continues to take action on an aggressive, pro-growth agenda to prioritize job creation and economic growth for New Jersey families. Governor Christie secured passage of $2.35 billion in targeted, job-creating business tax cuts beginning in the current budget and has worked to secure New Jersey as the home for business investment and growth from companies of all sizes, including household names like Panasonic, Honeywell, BASF, Church and Dwight, Coca Cola and Bayer. 

Since taking office, New Jersey has seen the creation of over 71,000 private sector jobs and experienced the best year of private sector job growth of the last decade in 2011.
 

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Blame Hoover

By Jim Morford, cross posted at InTheLobby

When I was a youngster and things weren’t going well in the economy, the Democrats would always claim, “It’s Hoover’s fault.”  Republicans, on the other hand, blamed Democrats for “getting us into war” citing Wilson, Roosevelt (FDR) and Truman.

Today, things have changed. Democrats blame Bush for both the economy and for getting us into war.

But who really should bear the responsibility, if not the blame, for the problems facing our country today? To be sure, there is enough blame to be shared by both political parties for landing us in the deeply troubled economy that haunts us today. Politicians of all stripes and at all levels of government have, through fiscal irresponsibility, over taxed and over spent the public’s money. Truly, the blame can reach beyond politicians to include skillful labor unions who have negotiated benefits beyond the ability of governments and private sector employers to pay for them. Additionally, an apathetic public – perhaps the greatest cause of all our woes – has allowed corrupt politicians, avaricious businesses and organized labor to loot the public coffers.

Since the days of Theodore Roosevelt and Woodrow Wilson, our country has been on a Fabian path to statisim. Some are surprised that the Obama Administration has accelerated the pace.

In his most recent book, The Next Decade, geopolitical analyst and founder of Stratfor George Friedman presents a provocative and insightful look into the next decade. It’s a book well worth reading, as he sees a time of massive change and what the US will need to do to survive.

Before we jump headlong into speculation about the next decade, let’s take a look at the recent past to get some idea of whose policies and actions have put us where we find ourselves today.

From 1949 until 1995, the Democratic Party held majority control of the House of Representatives, thereby acting as a restraint on one-party dominance when Republicans sometimes had majorities in the US Senate and/or the White House. The philosophy of bigger and bigger government, embraced to greater and lesser degrees by both political parties, has dominated the country since the 1930s.

It was the relatively short period from 2003 to 2007 that the Republican Party controlled both houses of Congress and the White House. Even during the “conservative” presidency of Ronald Reagan, at least one house of Congress remained in the control of the Democratic Party and government continued to grow.

The current and dramatic shift in political dominance in Washington did not just take place on January 20, 2009 when President Obama was sworn into office. The shift actually began on January 3, 2007 when the Democrats recaptured control of the US Senate. At that time, the Dow closed at over 12,600; unemployment stood at 4.6% and the economy under George W. Bush set a record of 52 consecutive months of job growth.

It was on January 3, 2007 that Barney Frank (D) became Chairman of the House Financial Services Committee and Chris Dodd (D) took over the Senate Banking Committee. 15 months later a meltdown occurred in the banking and financial services sector of our economy, notwithstanding President Bush’s urging repeatedly that serious reform was needed.

One of the most important responsibilities that a member of Congress has is to enact an annual budget for the federal government. However, the US Senate under the leadership of Harry Reid (D) has failed to pass a budget since 2009. The House, under Republican control since 2011, has twice passed budgets and sent them to the Senate, which for purely partisan reasons has failed to enact a budget bill. Unfortunately, Majority Leader Reid and his Democratic colleagues believe that partisanship  is their primary responsibility, rather than fiscal stewardship and sound public policy.

The Federal budget cycle is governed mainly by six laws. Probably the most important of them is The Budget and Accounting Act of 1921 that governs the basic practices of federal budgeting and spending. Because of partisan irresponsibility in refusing to enact a budget and to avoid government shutdowns, Congress gets along by enacting continuing resolutions. Doing so fails the test of fiscal responsibility. However, public apathy (cited above) allows negligent politicians to get away with it.

President George W. Bush was no fiscal conservative or effective small government advocate. During his eight years in office, he increased the federal budget by 104% and the national debt grew by $3.3 trillion.

The Obama Administration has accelerated the pace of spending and debt to unsustainable levels. Today, the national debt stands at over $15 trillion. The debt is dismissed by some as just money we owe ourselves, but the interest on that debt has to be paid out of tax revenues, or borrowed and added to the debt. That interest so far in 2012 is nearly $4 trillion. There are those politicians who see increasing taxes as the only answer to any problem. Others contend that the problem is not that government has too little in revenue, but that it is spending far too much.

Whether it is the fault of Republicans, Democrats or both, it is a useless exercise to simply blame. Rather, we must reverse course and get our fiscal house in order if we are to survive as a nation that resembles anything we have known up until now.

There are solutions, but no easy solutions. Our apathetic and dependant population “served” by corrupt and power-grasping politicians may result in our becoming more like Greece than the affluent land of opportunity we once were.   

In a 2011 interview conducted by economist Donald Luskin, former Federal Reserve Chairman Alan Greenspan observed that he sees the United States as having crossed the threshold, a point of no return, at which we’ve taken on too great a government debt, and at the same time made too great a commitment to government control of the economy. Luskin wrote, “He told us that we won’t recognize America 20 years from now, and that we won’t like what we see.”

Jim  Morford is former Associate  Director of Government Relations for the NJ Education Association, former VP and chief lobbyist for the NJ Chamber of Commerce, former President of the NJ Food Council and is Executive Director Emeritus of the NJ Society for Environmental, Economic Development (NJ SEED). He is a partner in the Trenton-based consulting firm of Morford-Drulis Associates, LLC. The opinions expressed in this column are his and do not necessarily reflect the opinions of any clients or associates. 

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Oceanport Pans CommVault’s Move To Fort Monmouth

Eatontown and Tinton Falls approve the move

CommVault,the Oceanport based Lucent spinoff  that is growing at a pace of about 24% per year, has proposed moving it headquarters to the Tinton Falls portion of Fort Monmouth where the company will build a 650,000 square foot facility.  CommVault has revenues of about $400 million per year and employs over 1200 people.

The Asbury Park Press reportsthat Oceanport did not support the revisions to the Fort Monmouth Redevelopment Authority’s development plan to accommodate CommVault.  Eatontown and Tinton Falls, the other municipalities that host Fort Monmouth, did approve the proposed revisions.

While Oceanport’s disappointment over losing such a fine company is understandable, CommVault has outgrown its current homeand will move out of its Oceanport facility anyway. The company was eyeing the Avaya site in Middletown prior to choosing Fort Monmouth.  Monmouth County is fortunate that the company has chosen has chosen to stay here.

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Black Kids In Asbury Park Shooting Each Other, Part One: Why It’s Happening

By Tommy DeSeno, also published in the April 12, 2012 edition of the triCityNews

We were warned in 1965 but failed to listen.  In that year Senator Daniel Patrick Moynihan, one of the most respected Democrats to ever live, issued a report to the Department of Labor that has become known as “The Moynihan Report.”  It was entitled “The Negro Family: The Case for National Action.”

Brevity requires me to get right to the paper’s thesis, simply stated therein:

The fundamental problem, in which this is most clearly the case, is that of family structure. The evidence – not final, but powerfully persuasive – is that the Negro family in the urban ghettos is crumbling. A middle class group has managed to save itself, but for vast numbers of the unskilled, poorly educated city working class the fabric of conventional social relationships has all but disintegrated.

Deteriorating “family structure” is the problem.  What specifically is Moynihan referring to?   The absence of a father in the Black household:

In essence, the Negro community has been forced into a matriarchal structure which, because it is out of line with the rest the American society, seriously retards the progress of the group as a whole, and imposes a crushing burden on the Negro male and, in consequence, on a great many Negro women as well.

It has to be acknowledged that the ideal situation to live in, giving the most likely chance for success of a family, is the traditional nuclear family with a father and mother supporting one another in the household.  As Moynihan points out, that isn’t a knock on other matriarchal societies.  However, when a majority in a nation is not matriarchal, and the minority is, that is devastating, even emasculating, to the male minority.

It is recognized that human situations won’t allow all to grow up in a nuclear family.  Also, since we are talking about a sample of 300 million people in America, you will be able to find some examples of children from single mother households who have done better than children from nuclear families.  That, however, is highlighting the exception while hiding the rule.

Statistics, as pointed out in The Moynihan report, reveal that the nuclear Black family with both parents in the household see their children grow up on average with higher IQs, less crime and more financial success than their single mother counterparts.

The report notes:

The role of the family in shaping character and ability is so pervasive as to be easily overlooked. The family is the basic social unit of American life; it is the basic socializing unit. By and large, adult conduct in society is learned as a child.

What role should young boys learn from their fathers?  The Moynihan Report quotes cultural anthropologist Margaret Mead:

“In every known human society, everywhere in the world, the young male learns that when he grows up one of the things which he must do in order to be a full member of society is to provide food for some female and her young.”

Moynihan adds to that:  This pattern is not immutable, however: it can be broken, even though it has always eventually reasserted itself Replicas Inflatable Cemento.

It couldn’t be clearer that the pattern among poor blacks has been toward households empty of fathers.  Unfortunately, despite the devastation it can bring to the children, fatherless Black households are growing.  Black children are learning more often than not that leaving families behind is an acceptable choice (I acknowledge the growing trend among white fathers today too).

Back in 1965 when the Moynihan Report was written, on average 36% of Black children were living in broken homes at any given moment.  That number has risen since then for both whites and non-whites, but today’s numbers for Blacks are alarming:  Nationwide 70% of Black children are born into single parent households, while in Asbury Park estimates have been as high as 90%.  The poor Black family has continued to disintegrate.

Understand, so there is no mistake, that Moynihan finds no shortcoming of the Black male or female: Genetically, the intelligence potential is distributed for Black infants in the same proportions as Icelanders, Chinese and every other group.

However, when testing Blacks alone, the pattern is clear that Black children from stable families fare far better than those from fatherless homes. 

Included in the areas where Blacks from broken homes fall short is crime.  Moynihan quotes several sources, including a study that showed 3/4ths – or twice the expected ratio – of Philadelphia’s Black juvenile delinquents came from one parent households. 

Moynihan was careful to note the outside pressures on the Black male, including segregation, alienation and prejudice in obtaining employment.  His point, however, is that the Black child from a stable family is given the emotional support to deal with it, while the child of the single parent family is often left with a hopelessness and quitting attitude based upon the actions of his absent father.

The shooting of young people in Asbury Park is not occurring to middle class children with stable homes.   This behavior was presciently predicted by Moynihan.  

So who is to blame for Asbury Park’s fatherless homes and children shooting each other?  I have narrowed it down to 35 people here in the City.   In the next issue of triCityNews, I will name names and tell you who is at fault.

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Christie’s “Condesending” Message

“I’ve never seen a less optimistic time, in my lifetime, in this courtry.  And people wonder why. I think it’s really simple.  It’s because government’s telling them stop dreaming, stop striving, we’ll take care of you.  We are turning into a paternalistic entitlement society…”

“….more importantly, there will be more money, more hope, more aspirations, in the hearts of our children and grandchildren than there are today.  And that’s what will make the 21st century the second American century.  That more than anything else, will allow the United States to export hope, and liberty and freedom around the world.  Not by just saying but by living it everyday in the way we conduct ourselves and in the way we govern ourselves.”

~Governor Chris Christie

Chris Christie believes that unrestrained by oppressive and “paternalistic” government, that ordinary people can and will live lives of accomplishment.

Tom Moran, that sanctimonious polyhistor responsible for The Star Ledger’s editorial page, thinks that makes Christie conceded.

The Asbury Park Press editorial board,  the Nudniks of Neptune who have fewer orginal thoughts that Joe Biden, agrees with Moran.

Christie made his remarks at a George W. Bush Presidential Center gathering in New York on Tuesday, April 10.  Moran posted his rant calling the governor’s message “condescending” early yesterday morning, the 12th.  The Nudniks followed yesterday evening calling Christie’s message “hectoring,” “insulting” and “condescending.”

The editorialists of New Jersey’s two largest news outlets must be appalled by Christie’s soaring popularity. 

It was the content of Christie’s remarks in between the two phrases I quoted above that got to the liberal regressive pundits.  Without naming the president, Christie had the audacity to point out that the Obama agenda has not resulted in hope, but in pessimism.  That if it continues we will be financially and morally bankrupt, waiting for the check to show up rather than striving for bigger checks.

Here’s what Christie said, unfiltered by the bias of Moran, the Nudniks or MMM:

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NJ facing 20% reduction in government services

The fiscal crisis in New Jersey’s governments and schools will continue through 2017 as a result of a $13 billion revenue shortfall, ($8 billion on the state level, $5 billion on the local, county and school levels combined) according to a report, Facing Our Future, released by the Council of New Jersey Grantmakers. (CNJG)

NJSpotlight and Bloomberg have write ups on the report.

The report says New Jersey will face a gradual cut in government services of 20%.  Increased classroom sizes, from 22 to 28, less police officers and the elimination of services all together.

CNJG recommends solutions we have all heard before.  Shared services, consolidations, more county government and less municipal government, county administration of schools.

One thing that is not clear from the write-ups.  $7 billion of the $8 billion state revenue shortfall will be pension contributions negotiated by Governor Christie and the Democratic legislature in last years “landmark” pension and benefit reform bill.

One solution not recommended in the report….break the government employees unions’ control of our government.

In 2010 the unions said no to give backs.  Thus, New Jersey suffered increased class sizes and police layoffs in our cities.  Crime continues to rise in Newark and Camden, but our elected officials can’t do anything about that because the unions control how many police officers can be hired given the money available to pay them.

New Jersey pays unemployment benefits to laid off police officers not to patrol the streets of our cities, while the high paid officers who kept their jobs do the best they can.   There are less extreme examples of needless service cutbacks throughout the state.

Practically speaking, there is no question that New Jersey’s public employees control the government.  Not the people.  Not the elected officials.

New Jersey’s fiscal crisis could be solved easily if the law of supply and demand were applied to the labor market for government workers.   Until that happens, if it ever happens, we will continue to pay more for less. 

It doesn’t matter how we restructure government so long as the employees are in charge.

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