News : POLITICO New Jersey Playbook: Democrats shaky on financial transaction tax

Wednesday, October 21, 2020

POLITICO New Jersey Playbook: Democrats shaky on financial transaction tax

Oct 21, 2020

Good Wednesday morning!

The three top Democratic leaders of New Jersey are behind taxing electronic financial transactions at a small fraction of a cent, but signs abound that the finance industry's threats to move their trades out of the state are scaring lower-ranking Democrats off the bill.

At a hearing on the proposed tax Monday, two Democratic Assembly members — Yvonne Lopez (D-Middlesex) and Roy Freiman (D-Somerset) — both expressed serious reservations with the tax and their belief that the exchanges would decamp to other states. Freiman compared it to the micro-cent theft scheme from "Office Space," while Lopez said she's far from sold on the idea. Lopez's skepticism is particularly poignant given that her running mate is Assembly Speaker Craig Coughlin (D-Middlesex), who has been supportive of the tax. This could have something to do with the IBEW coming out against it. (I haven't conducted a poll but it's a safe bet that most if not all Republicans are against it.)

And then yesterday, Rep. Josh Gottheimer joined IBEW officials in Mahwah, where the NYSE has a big server facility, to rail against the proposal. Gottheimer, who's gotten a lot of campaign contributions from the finance industry, said it would cost "hundreds of jobs."

Notably, the data centers themselves have not said how many people they employ, or how much tax revenue for New Jersey that generates, though the IBEW has said much of their North Jersey locals' work is at the data centers.

WHERE'S MURPHY?: At Camden County College at noon for a "workforce development announcement" with Rep. Donald Norcross

CORONAVIRUS TRACKER: 1,036 newly-diagnosed cases for a total of 222,193. 13 more deaths for a total of 14,438 (not counting 1,789 presumed deaths)

QUOTE OF THE DAY: "Our states have worked together successfully in combating this pandemic since the beginning and we'll continue to do so. The travel advisory was designed to keep our respective states safe, with the understanding that we are a connected region, dependent on each other when it comes to commerce, education, and health care. We're urging all of our residents to avoid unnecessary or non-essential travel between states at this time, but will not subject residents of our states to a quarantine if coming from a neighboring state. New York, New Jersey, and Connecticut have among the lowest infection rates in the country because we have based our approaches to controlling the spread on science and data, and we will continue to do so." — A joint statement from Gov. Phil Murphy, NY Gov. Andrew Cuomo and CT Gov Ned Lamont, after NJ and CT met the states' quarantine threshold

HAPPY BIRTHDAY: Planned Parenthood's Elizabeth Coulter. Missed yesterday: Murphy staffer Danny Davidow, Essex County operative Rasheida Smith

ELECTIONLAND: POLITICO is partnering with Electionland , a ProPublica project that works with newsrooms to track voting issues around the country. The Electionland project covers problems that prevent eligible voters from casting their ballots during the 2020 elections. We're part of a coalition of newsrooms around the country that are investigating issues related to voter registration, pandemic-related changes to voting, the shift to vote-by-mail, cybersecurity, voter education, misinformation, and more. Tell us here if you're having trouble voting.

WHAT TRENTON MADE

AT LEAST IT'S NOT SISYPHEAN — Allen-McMillan facing 'herculean' task of leading New Jersey schools through a pandemic, by POLITICO's Carly Sitrin: Angelica Allen-McMillan, who Gov. Phil Murphy formally nominated Tuesday to serve as New Jersey's next education commissioner, is walking into a minefield but said she's up for the challenge. Allen-McMillian, who will begin serving as acting commissioner on Wednesday, will take over a beleaguered Department of Education just as New Jersey's coronavirus cases are beginning to climb again, threatening students' learning environments and casting doubt on superintendents' best-laid plans for the next marking period. "We have been knocked down and will continue to stumble on occasion as we work to stand tall in our fight against Covid-19," Allen-McMillan, who most recently served as interim Morris County schools superintendent, said during a nominating ceremony Tuesday in South Orange. "As we continue to close the digital divide, as well as mitigate learning losses as much as possible, I ask you to remember that this is not as formidable as our resolve and definitely not indomitable when challenged by our effort."

CHRISTOPHER NOLAN FOR GOVERNOR — New Jersey, Connecticut meet metrics for their own tri-state travel quarantine, by POLITICO's Anna Gronewold: New York's partners in a Northeast travel quarantine have now qualified for the quarantine themselves. Gov. Andrew Cuomo announced during a Tuesday call with reporters that New Jersey and Connecticut have both exceeded one of the two metrics for states from whence travelers must self-quarantine for two weeks upon arrival. New Jersey, Connecticut and Pennsylvania, however have essentially been granted an exemption from official recognition on the travel quarantine list, which now includes 40 other states and territories. There is "no practical way" to enforce travel among those neighboring states, he said.

IRISH, IRISH AND IRISH IS NOT DIVERSE ENOUGH LEADERSHIP? — "After years of delays, Black NJ lawmakers say their voices have not been heard on urgent reforms," by The Record's Ashley Balcerzak and Dustin Racioppi: "Black lawmakers say their voices have not been heard and some of their policy priorities have idled — on law enforcement reforms including making police discipline public, limiting pollution in communities of color and studying reparations. Those lawmakers and advocates for racial and social justice say that despite recent policy successes, the trio of white men who hold New Jersey's most powerful political positions have much harder work to do to match their rhetoric that 'Black lives matter.' The COVID-19 pandemic has crystallized their concerns. While Gov. Phil Murphy and lawmakers moved swiftly to drop the prejudiced title of county freeholders and designate the emancipation of slaves a state holiday, measures to study the demographic effects of the disease and remove mandatory minimum sentences have stalled."

NJ TRANSIT — "After protests, NJ Transit makes major change to plan for controversial power plant," by NJ Advance Media's Larry Higgs: "After more than a year of protests on land and even in the water, environmentalists got their wish. An NJ Transit project to build a back-up power system to keep trains running will be fueled by solar and battery storage instead of natural gas. 'We are reimagining the project to make it more environmentally friendly,' said Kevin Corbett, NJ Transit CEO, at Friday's Alliance for Action transportation conference. 'The goal is to get to 100% renewable energy. We want to make it as green as possible.' The project, known as Transitgrid, has been opposed by environmentalists and 13 Hudson and Bergen county towns and cities that passed resolutions opposing the project because it would worsen pollution in North Jersey."

IF HODOR WAS FROM NJ HIS NAME WOULD BE HOLINE — "Line holders are paid to wait all night outside motor vehicle offices," by The New York Times' Lauren Hard: "In a New Jersey suburb, a woman sets up a tent around 8 p.m. outside a state Motor Vehicle Commission office. She will spend the night there, accompanied by her 4-year-old son, until just before the office opens at 8 a.m. The woman, Sumbal Nadeem, doesn't need a driver's license or anything else from the agency. But she does need money. She is being paid $150 to hold a place in line by a motorist who needs a car registration. The pandemic has spawned a new class of worker in New Jersey. They are the line holders or line sitters who, for a fee, will wait for hours, sometimes all night, outside a branch of the Motor Vehicle Commission — which was closed for four months — until whoever hired them comes to take that place right before the office opens."

BEER BEORE LIQUOR NEVER BEEN CHEAPER — "Cheaper liquor licenses could save N.J. restaurants. New bills aims at reform," by NJ Advance Media's Jeremy Schneider: "A New Jersey senator has proposed a new approach to relieve restaurants struggling amid the pandemic: Reform the state's much-maligned liquor license system. A bill sponsored by state Sen. Vin Gopal (D-11th District) and backed by several high-profile New Jersey restaurants would establish a new type of liquor license that would allow restaurants to serve only beer, wine and cider for a fraction of the price of a full license. The new license, which would not allow restaurants to serve liquor or have bar service, would cost restaurants around $4,000 a year, comparable to how much a full liquor license costs in New York City. Liquor licenses are incredibly limited under New Jersey's current system, with some towns only allowing a handful of restaurants to have them. The limited supply has skyrocketed the price of the licenses, which can run into the millions."

HOW HIGH ED — "Economically, legalizing marijuana makes sense," by Monmouth University Professor Robert H. Scott, III for The Star-Ledger : "When Colorado legalized marijuana the University of Colorado saw a 43% increase in applications from out-of-state students. It is not inconceivable that New Jersey, currently a net exporter of college students, becomes a draw for some out-of-state college-seeking students. While marijuana use among college students is higher in fully legal states, one study found binge drinking fell 6% in fully legal states. Also, there was no evidence that the use of other drugs among college students increased in fully legal states compared to non-legal states."

—"What happens if New Jersey legalizes marijuana: Everything you need to know"

—"'Independence is key' for blind voters who get demonstration of specialized voting machines"

—New Jersey accuses student loan servicer of 'deceptive and unconscionable tactics'

—Poll: Majority in New Jersey supports pardons for even the most serious marijuana offenses

THIS WEEK - NEW EPISODES OF POLITICO'S GLOBAL TRANSLATIONS PODCAST : The world has long been beset by big problems that defy political boundaries, but many of those issues exploded over the past year. Are world leaders and political actors up to the task of solving them? Is the private sector? Our Global Translations podcast, presented by Citi, unpacks the roadblocks to smart policy decisions and examines the long-term costs of the short-term thinking that drives many political and business decisions. Subscribe now for Season Two, launching Oct. 21.

TRUMP ERA

FOGGY MEMORY BOTTOM — "Top State Department official repeatedly drank to excess on the job: Watchdog," by The Huffington Post's Akbar Shahid Ahmed: "A high-ranking State Department official who is close to Secretary of State Mike Pompeo drank alcohol excessively on 'numerous' occasions while working, even raising a red flag among foreign counterparts, multiple State Department officials told the agency's watchdog for an unpublished report obtained by HuffPost. The department's inspector general 'believes that [Cam Henderson's] conduct raises significant suitability concerns and given the visibility of her position, [the office] believes it is important to bring them to the attention of department leadership,' the report says … Henderson is a longtime GOP operative who worked for years with former New Jersey Gov. Chris Christie, a Trump confidant. In July, New Jersey's attorney general ordered her to pay a fine for failing to register a company she owned as a fundraising organization after it took money for fundraising services from a well-funded nonprofit called Trump for America."

—"Booker, Mehta will face-off in New Jersey Globe U.S. Senate debate on October 27"

—"Amid fears of voter intimidation, NJ moves to limit police at polls"

—"Released from ICE detention due to COVID, NJ Green Card holder is detained again"

—" My brother had COVID-19 and a congressman [Chris Smith] helped save his life"

LOCAL

MCCORRUPTION — "Newark councilman charged in alleged kickback scheme," by NJ Advance Medai's Rebecca Panico: "Newark's West Ward Councilman Joseph McCallum, Jr. was charged with one count of wire fraud in an alleged kickback scheme involving developers, U.S. Attorney Craig Carpenito announced Tuesday. McCallum, 65, was charged after a consultant named Malik Frederick pleaded guilty Tuesday to participating in the alleged scheme. The councilman is accused of receiving kickbacks from Frederick that were funded by developers, contracting companies and other businesses looking for contracts with the city, authorities said. The councilman, who has been in office since 2014, is accused of receiving or attempting to get bribes or kickbacks ranging from $500 in cash to cover travel expenses for an out-of-country trip to $50,000 from a developer. None of the developers or companies were named in court documents."

NEXT THEY'LL RUN HOKKAIDO HARRY — "He calls himself 'Tokyo Joe' and is running for sheriff of Atlantic County. Want to know more?" by The Philadelphia Inquirer's Amy S. Rosenberg: "'Tokyo Joe' O'Donoghue is happy to explain. He says he gets more questions about the nickname than about the office he is seeking: Atlantic County sheriff. He's had the name since the third grade, when kids chased him home from school. Even his Democratic opponent, incumbent Sheriff Eric Scheffler, says he's called O'Donoghue 'Tokyo Joe' for 40 years. Now, the name is on signs throughout the county, a somewhat discordant but self-referential epithet that keeps O'Donoghue's campaign pivoting from matters of law enforcement to Joe himself sharing, over and over, his deep connection to his grandfather, the first Japanese American to become a citizen in Atlantic County. 'I can tell you, it's the most-asked question,' O'Donoghue, 65, a Republican, said in a recent interview … "I say, 'Don't you want to know about the sheriff's office?' The comments he gets on the campaign trail are 'everything from 'It's racist' to being accused of being a loyalist to Japan and imperialists,' he said. 'There's been some unkind comments. I've dealt with that my whole life.'"

THEY CAN DO IT IN CUBAN PETE'S BACKYARD — " Montclair parents, frustrated with all-virtual learning, push for outdoor classrooms," by The Record's Julia Martin: "Some parents in Montclair, at their wits' end after a spring and fall of all-virtual learning, are trying to persuade administrators that outdoor classrooms are the best way to teach during a pandemic. The group, Montclair Outdoor Learning, began working with the national advocacy group Green Schoolyards America in July to create a hybrid instruction model with an in-person, outdoor option. They hoped to become the first public school district in the state to adopt the model."

PLEASE AMENDHAM YOUR STATEMENT — "Mendham GOP tells voters they can't vote in person. That's not true," by The Record's Terrence T. McDonald: "Republicans in [Mendham Borough] are telling voters they will not be able to vote in person on Nov. 3 unless they are visually impaired, a statement at odds with New Jersey's policy on in-person voting during the coronavirus outbreak. A letter sent to voters last week, signed by members of the Mendham Borough Republican Committee, trashes Murphy for 'usurping your American rights for his political gain' and barring voters from casting ballots in-person. It acknowledges that voters who go to polling places on Nov. 3 can vote using provisional ballots, but also says, 'you will not be able to vote unless you are on the Morris County Board of Elections list for visually impaired voters.' This is false."

CHROMEOWE — "PPG Industries reaches $5 million settlement with Jersey City homeowners over chromium contamination," by The jersey Journal's Peter D'Auria: "An industrial products company could pay millions of dollars to Jersey City residents in a new class action settlement, potentially bringing an end to years of litigation over chromium contamination on Jersey City's south side. Under the terms of the proposed agreement, PPG Industries would pay out $5 million to Jersey City property owners to settle claims that waste from a former chromium plant was lowering property values in Bergen-Lafayette."

—" Mail-in election hurdles place Monmouth County Clerk post in spotlight"

—"Vernon mayor, council seek to 'deactivate' Historic Preservation Commission after chair refuses to step down"

—"Breastfeeding mom wasn't allowed to pump at [Salem County] school, she claims in lawsuit"

—"Teaneck Board of Education race features one veteran and five newcomers"

—"Holmdel mayor, former GOP rival battle Democratic challengers"

—"Monmouth freeholder candidates won't actually serve as freeholders"

—" Whitney Houston to shine on in glass mosaic mural in [Newark] downtown"

GLOBAL PULSE, GLOBAL PURPOSE: At a high-stakes moment when global health has become a household concern, it is pivotal to keep up with the politics and policy driving change. Global Pulse connects leaders, policymakers and advocates to the people and politics driving global health. Join the conversation and subscribe today for this new weekly newsletter.

EVERYTHING ELSE

MORAL AUTHORITY — "Explosive findings: Archdiocese clergy protected priest who allegedly stole $1M for sex, vacations," by The Record's Abbott Koloff and Deena Yellin: "A church investigation conducted last year — which has yet to be made public by the Catholic Archdiocese of New York — revealed that a priest who allegedly stole $1 million from two parishes to pay for sex, lavish vacations and a New Jersey shore home was protected for years by clergy at the archdiocese headquarters and avoided criminal prosecution despite significant evidence the archdiocese itself recently found … Over the summer, Miqueli's body was found at his Brick Township home, where he had used stolen money to pay a man for bondage, discipline and sadomasochistic sessions, according to a lawsuit filed several years ago. Days after his body was found, the archdiocese's judicial vicar and lead investigator in the case, Father Richard Welch, was transferred to Rome. In a recent email, the New York Archdiocese said the priest's death put an end to the case, and 'no judgment was ever passed.'"

—"Legendary N.J. burger joint [White Manna] ranks No. 2 on best burgers in America list"

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