Tuesday, September 22, 2009

Corzine Tax Hike Ahead?

Four years ago, New Jersey Governor Jon Corzine promised to use his supposed Wall Street know-how to cut our taxes.
Instead, he has raised taxes, raised fees, raised tolls and chased businesses out of our state. Amazingly, over the weekend, Governor Jon Corzine told The Philadelphia Inquirer that he would not rule out raising taxes again to cover his gaping budget shortfalls, despite nearly 10 percent unemployment.
If Governor Corzine has already broken his campaign promise to New Jerseyans to not raise taxes, what kind of tax increases can we expect if he is actually admitting he will raise taxes?
In the last four years, Governor Corzine's tax hikes and uncontrolled spending have given New Jerseyans the highest tax burden in the nation, so it should be no surprise that he has no problem raising taxes on our state again.
In his last budget alone, he raised taxes by $1.2 billion, while New Jerseyans pay the highest property taxes in the country.
Even his most recent tax increases are not enough to cover his egregious spending. Next year, New Jersey will need to overcome Jon Corzine's $8 billion budget deficit and the Governor has told us how he will do so: not cut wasteful spending, but instead raise taxes.
Christie-Guadagno Campaign Manager Bill Stepien: "Record numbers of jobs are leaving our state and, Jon Corzine is encouraging New Jerseyans to follow them. Governor Corzine's promise to raise taxes is the first time in this campaign he has told the truth about his record and his approach to governing. While the Governor may believe that more taxes are the answer, the fact is the people of New Jersey are hurting. Governor Corzine's commitment to even higher taxes and wasteful spending that got our state into this mess show just how out of touch he is. It is time to say no to Governor Corzine's irresponsible policies and change the way New Jersey does business."
Corzine By the Numbers

· An upcoming $8 billion deficit for FY2011

· $1.2 billion in new taxes and fees for New Jerseyans

· 1.2 million more taxpayers won't receive property tax rebates in FY 2010

Tax Burden: In FY2010, Governor Corzine's budget will make the tax burden even heavier by making the taxpayers pay these new taxes and fines:

o $970 million for the elimination of property tax rebates
o $903 million for income tax rate increases
o $400 million for tax increase on employers for unemployment program
o $270 million for corporate business tax increase
o $100 million for the elimination of property tax deduction
o $37 million for health insurance tax increases
o $30 million for cigarette tax increases
o $21.6 million for wine and liquor tax increases
o $20 million for DMV fees
o $8 million for taxing lottery winnings increase

To view the full story from The Philadelphia Inquirer, please click here.


Josh said...

For a moment, let's put aside Corzine's failings, as well as those of the state legislature (which have not gotten enough blame for the current mess IMO). Bottom line is that NJ is in a massive fiscal hole. How do you get out of it? Sure, you can cut spending. But can you cut it enough to get us out of this hole while still allowing the government to function?

Simply put, a tax increase, as hard as it may be during these times and as politically dangerous as it is, may be necessary.

As much as conservatives worship Ronald Reagan, remember that his tax cuts and other economic plans looked great in the short run but resulted in the budget deficit and debt ballooning out of control because Reagan also spent like crazy, especially on defense. Unfortunately for George H.W. Bush, he was the one left holding the bag. His breaking his "no new taxes" pledge cost him the Presidency, but again it probably was necessary.

Josh said...

If we really want the economy fixed for the long-haul, we need to have a major change of mentality in this country. We have to realize that we can't have everything we want when we want it just because we're the U.S.A. We have to learn to live within our means. We have to think big picture and not just what makes us feel better about ourselves right now. We have to learn to work with the rest of the world and not think that we're infallible and should be able to impress our will on everybody.

That won't sit well with the Reagan, Bush II and Sarah Palin types who think America is perfect and can do no wrong. But it's true. Cutting a few government departments here or lowering a few tax rates there is at best a short-term fix. Until we change the mindset in our government and the people who elect it, we'll just keep ending up back in this same spot every few decades.

Radu Gherman said...

Nicely put.