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Tuesday, May 25, 2010

New Jersey: Becoming Greek?

Reports surface this afternoon that New Jersey Governor Chris Christie is saying that his state is "careening" towards becoming Greece. Last night it emerged that the state has a several hundred million dollar deficit in its current fiscal year which ends June 30, 2010 and may have to make about $300 million in additional cuts before then.

Apparently the word "Greece" is becoming a one-word synonym for fiscal disaster.

Anecdotal reports suggest that in state residents who work out of state (and hence pay their taxes out of state) are being audited or told to re-send long-ago-filed tax returns on the theory that there is "no record" of the filing or of certain documentation. This report - if correct - indicates that state government is passing along the cost of its disorganization or incompetence to its residents. This cost-shifting will encourage state residents already on the fence and thinking about relocating to take more steps in that direction.

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