Opinion: Cap on SALT deduction should lead to property tax reform

By Harold V. Kane

Harold V. Kane

Did President Donald Trump inadvertently give the New Jersey Republicans a gift horse? It is no secret that the cap of $10,000 on the deduction for state and local taxes (SALT) will hit many Garden State residents hard. Many residents of the Hudson County Gold Coast are paying $20,000 to $30,000 in property taxes plus New Jersey income and sales taxes, and New York City and state income taxes. These residents are used to taking the full SALT deduction from their federal taxes and often receive a tax refund from the Treasury. Now there is a high probability that these people will be sending a check to the Treasury instead of receiving one. Some will blame the president for the additional tax liability, but the national tax laws have to be applied equally. Where the changes hurt New Jersey they actually help Texas since Texas has much lower property taxes and no state income tax. So why is this a gift horse?

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Pay to pay investigation probes Birdsall Engineering

The State Attorney General’s office executed search warrants on Birdsall Services Group’s Eatontown office yesterday, according to reports in Politickernj and The Asbury Park Press.

Politickernj cites a source saying that the investigation is into campaign contributions, including the Middlesex County PACS first exposed by Harold Kane writing for MMM in September of 2011.  Politickernj is erroneously claiming credit for first exposing the activities of the Middlesex County PACs and their donors.

Birdsall Services is cooperating with the investigation, according to The Asbury Park Press account.

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CME Associates Buys Middlesex County Democrats

By Harold V. Kane, Monroe Township

It is no secret in Middlesex County that the Middlesex County Democrat Organization never seems to have problems raising money for political campaigns. What is strange is who some of the donors are. Did you ever hear of Citizens for a Green Environment, Women for Good Government, or the Coalition for Government Efficiency. These three groups are political action committees that support Democrats exclusively. One has to ask where their funds come from Are tree huggers, feminists, and efficiency experts so interested in electoral activity that they are willing to donate huge sums to their respective groups. The answer is of course NOT!

These three groups are among 12(list below) that the Democrats established for scrutiny-avoidance so that large sums of money could be contributed but not readily made available for review. The key to this type of operation is the difference in the contribution level that may be given to an individual candidate versus to PAC.  The maximum that a single person or organization can make to candidate’s committee is $2,600 per election. However, the maximum that can be made to a PAC is $7,200 per election. If a donor wants to contribute large sums to a candidate or series of candidates, the easiest way is to contribute to PACs and let the PACs distribute the money. This is what happens in Middlesex County.

Since January of 2008 up to August of 2011, the PACs controlled by the Middlesex County Democrats have accepted $1,715,264 from various contributors with $621,000 (36%) coming from the five principals  ( David Samuel, John Stefani, Jay Cornell, Michael McClelland, and Gregory Valesi) of CME Associates of Sayreville. This does not include the $250,000 that the CME principals contributed to various candidate committees. In total the CME principals contributed $854,550 to the Democrats and a paltry $17,550 to the Republicans for a total of $872,100 during this 3.5 year period.

Obviously CME was not alone. Second on the donor hit parade was T&M Associates of Middletown, third was the Gartland Family of Companies of Baltimore and fourth was Federal Business Centers of Edison. The citizens of Middlesex County have gotten a partial reprieve from these clandestine activities. Francis Gartland, the scion of the Gartland family of companies, has pled guilty to bribing a public official in Ocean County. This should keep the Gartland check book closed, at least for a while.

You must be wondering how this massive scrutiny-avoidance can happen. The Democrats are exploiting a fault in the NJ Election Law Enforcement Commission computer system. The fault precludes a standard name query from extracting contributor names that gave to PACs. The information is available, but is not overly easy to find.

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