Friday, January 27, 2006

Corzine and Taxes - Perfect Together

New Jersey voters fell hook, line, and sinker for Corzine's promises of lower property taxes.

Are more taxes in N.J.'s future?

Budget fixes: spending cuts, tax increases

Corzine urged to hike taxes

Aides to Governor Corzine are recommending a range of new taxes on clothing, cable television and Internet purchases as well as possible layoffs to help plug a $6 billion hole in the state budget.

The advisers, in a six-page draft report, are also suggesting a higher gas tax, a slice of 401(k) earnings for state coffers and a temporary tax surcharge to raise money immediately. They say they want an end to "illogical loopholes" in the income tax code.

"The fiscal health of the state of New Jersey has plunged perilously close to ruin," the draft says. "In two short decades, under both Democratic and Republican administrations, the state has gone from a financial powerhouse to a financial basket case."

Corzine has said the state budget will fall about $6 billion short of its anticipated $28 billion spending needs. Moreover, the Transportation Trust Fund, which finances multimillion-dollar highway projects, and the state workers' pension fund are heading toward insolvency. The state has racked up nearly $30 billion in debt and has another $30 billion in liabilities, the aides concluded.

The document makes no specific proposals for dealing with spiraling property taxes throughout the state, but it does assert that the plan could lay the groundwork for comprehensive and long-lasting property tax reform. Failure to enact fundamental changes would lead to "grave consequences, including ... skyrocketing property taxes," it warns.

Corzine had campaigned on a platform of property tax reform. Although he refused to make a "no new taxes" pledge, he often said he had no intention of raising taxes.

The draft report Thursday led critics to compare him with former Gov. Jim Florio, whom voters punished in the early 1990s for declaring a new tax on toilet paper and other staples, plus raising the sales tax rate 1 percent.

"Corzine has broken Jim Florio's record," Wilson said. "In just eight days after taking office he's announced perhaps the most significant tax increases in a long time."

Caveat Emptor!
Grim

14 Comments:

Anonymous Anonymous said...

Raise gas tax. This guy is a democrat? The Gas tax is the tax that will punish the middle/lower class more than any other.
Hoemowners are getting squeezed on all sides. House prices have nowhere to go but down substantially to account for stagnant wages higher rates and higher housing cost.
i hope homeonwers are not counting on house values for retirement.

1/27/2006 09:38:00 AM  
Blogger RentinginNJ said...

"Raise gas tax. This guy is a democrat? The Gas tax is the tax that will punish the middle/lower class more than any other."

Yes, but the environmentalists, another of his constituencies, will approve.

Hey, I have an idea. Stop spending so much money.

1/27/2006 10:03:00 AM  
Blogger RentinginNJ said...

Just in...

New home sales fall 23% in the Northeast

1/27/2006 10:15:00 AM  
Blogger Richie said...

Why doesn't he just donate some of his assets to help the state out? He has no problem donating to his girlfriends and forgiving 6-figure loans.

Stop screwing the taxpayers. Start fixing up your corrupt government, cutting your OWN internal state budgets, laying off government workers, and cutting spending across the board. Run the state like its a business, not a damn charity case.

UMDNJ just amplifies the whole state of corruption that the government lives in. Unfortunately it's us taxpayers who have to bail them out all the time.

-Richie

1/27/2006 10:16:00 AM  
Blogger lindsey said...

Here is the simple equation that any governor in this state faces: raise taxes, reduce the size of government, or monkey with the numbers.
We've been doing Number 3 for 20 years so that move has been largely played out. I sure don't need higher taxes, so I would be very happy to see some cuts, but even that option is limited. I don't think it's possible to cut out nearly 25 percent of the total spending and I really would like to see fiscal responsibility.

A rise in the gas tax will hurt, but it is also among the easiest to taxes to avoid and does have positive externals regarding the environment.

Corzine asked to be put in charge of this mess, I say good luck.

1/27/2006 10:21:00 AM  
Anonymous Anonymous said...

You can't be seriously shocked by this. They both talked about tax cuts, but that's because voters are too stupid to be told the truth about taxes.

There will be budget cuts and there will be tax hikes, and the budget still won't be balanced because Whitman (an others) bonded us out the ass.

It's just like California where Anrie is finding it impossible to balance the budget like he promised. Anyone who pays attention knew they were full of it when they promised to lower taxes.

The voters ask to be lied to in order to get their vote and then are angry whe nit turns out they were lied to.

1/27/2006 10:27:00 AM  
Anonymous Anonymous said...

We are getting what we payed for. This is what you get when you defer payments and bond, basically playing games with the budget. We asked for fiscal irresponsibility!

Don't blame Corzine, blame yourself if you voted for these clowns and even more so if you punish ones that are responsible enough to balance a budget the old fashioned way instead of borrowing.

As for the methods being trotted out for raising funds, I would prefer ones that were not so regressive. Lets bring back those taxes that Whitman reduced on upper income people.

But my big beef is nobody wants to pay for anything. Yeah, don't worry about paying for it today we'll just push it onto our grandchildren.

Folks, we have met the enemy and he is us.

zyzyx

1/27/2006 10:48:00 AM  
Anonymous Anonymous said...

Not that I'm a particular fan of higher property taxes, but I find it amazing/amusing when people revel in the fact that their property value has gone up 50-60% in 3 years, but object to increases in property taxes.

That being said, I think the state has been spending and borrowing like a drunken sailor.

1/27/2006 01:43:00 PM  
Blogger skep-tic said...

" I find it amazing/amusing when people revel in the fact that their property value has gone up 50-60% in 3 years, but object to increases in property taxes."

I agree with this. You can't have it both ways. If the houses in your community are so expensive that teachers, firefighters, police, etc can't afford to live in your town, what do you expect?

And if you really live in an "exclusive" area and can't afford the taxes, then maybe it's time for you to move.

1/27/2006 02:05:00 PM  
Blogger grim said...

I think that hit the nail square on the head.

jb

1/27/2006 02:35:00 PM  
Blogger Roadtripboy said...

I think Americans in general need a reality check! Americans pay very low taxes compared to other Western Democracies. Work in France or Spain for a couple of months and scrutinize your check stub; you'll probably find that the taxes are double what we pay here!

And why is it that we feel that we shouldn't have to pay for anything? We all want good schools, well maintained roads, a strong defense, safe streets, numerous nice parks, etc. etc. but we don't want to pay for it! What gives?

I personally am not opposed to paying taxes. I am however opposed to giving tax breaks to the wealthy (which is typical MO for America) while placing the burden of financing public projects on the backs of the lower and middle classes.

1/27/2006 11:09:00 PM  
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