Peter Chen 陳逸群

Call it a loophole or don't. The fact is the ABC deduction: - grew much faster than other deductions - grew faster than the real-world business environment would suggest - is used predominantly by very-high-income-earners

The total ABC deduction costs the state $193M for FY27 The amount the ABC reform saves is ~$120M for FY27 Keep in mind those earning $500k-$1M still get to keep half the deduction! This means **the vast majority of this deduction was captured by the top 1% in incomes.**

One weird thing about the business lobby response to @GovSherrillNJ proposal to rein in Alternative Business Calculation deductions is insistence that it's "not a loophole." I don't care what you call it but it's tax code that the wealthy have exploited to reduce their taxes

STREAMING. Two looks at @GovSherrillNJ's first budget proposals. @ptrchn1 and @declanoscanlon. @newjerseydems @NJGOP youtu.be/wZTySvEcnWY

@HoldThatShow has hot takes on @GovSherrillNJ @GovMurphy and their respective budgets. Plus, events that made #AbrahamLincoln the melancholy president he would become. @ptrchn1 @declanoscanlon @dinambar @SpeakerCoughlin @SenPresScutari @PRESSCORENJ STREAMING NOW

On this week's show: @ptrchn1 @declanoscanlon @dinambar on @GovSherrillNJ @GovMurphy, the budget @SenPresScutari @SpeakerCoughlin @PaulASarlo and Abraham Lincoln ... STREAMS AT 6PM youtube.com/watch?v=AbibJD…

Can't even watch my cozy PBS murder mysteries without NJ politics intruding

Revenues from taxation are the foundation of all govt policies that help expand opportunity. Taxes are not the enemy. When we see the opportunities generated by affordable health insurance, good public schools, and a strong safety net, we're looking at TAXES in action.

The New Deal and World War Two required big increases in taxes, expanding the income tax and making it progressive. Medicare and Social Security depend on substantial payroll taxes Big ideas to improve affordability require big revenues!

Most of my budget address commentary is on the other site, but I wanted to lift up one section of Gov Sherrill's budget address She notes the New Deal, Social Security, Medicare, and the GI Bill as hallmarks of govt working well. And I agree! And they depended on TAXATION.

FYI I'm budgetposting on the other site

@MattFriedmanNJ counterpoint:

Of the thousands of bills introduced in the NJ Legislature, I think I've found the one with the least chance of passage.

Methodology quibbles aside, this common framing is not a particularly useful way of thinking about state economies or budgets. States are not fiefdoms! Their borders are porous and their economies interdependent. A functional fed govt and transfer system is good for all of us

This week’s Mikie’s World newsletter previews Gov. Sherrill’s first state budget speech — and speculation about her seeking cuts to the Stay NJ tax break for seniors. Also: ICE bills, Sherrill getting booed, and more … Subscribe: link.nj.com/join/6fj/newsl…