New NJ Budget Tax Increases

As predicted here, Corzine's budget that passed this week including a partial restoration of the property tax rebate program due to increase tax amnesty collections of 500 million dollars. Rebates have continued for Seniors and are restored for those making up to 75,000 dollars per year(at a 2/3 rate). It does eliminate the rebate for renters which I never understood anyway.

From the Burlington County Times:

The recession-year budget raises $1.3 billion in new taxes on liquor, cigarettes and the wealthy. It extends a 4 percent surcharge on the corporate business tax that was to expire, and realizes $500 million by suspending rebates to renters and higher income homeowners. Republicans say all that amounts to $2.8 billion in tax increases.

The article goes on to note the increased tax on residents earning over 500,000 dollars per year. In addition, to those making over 250,000 per year, next year you cannot deduct your property taxes. For those under 250,000 per year, your property tax deduction is now capped at 5,000. Check out your tax bill, I bet many of you out there are about to get a tax increase and you don't even know it.

What is missing from this budget is cuts. Real cuts. And that is why Corzine is still doesn't get it. The only people who will get it from this budget is the citizens of New Jersey. And they are going to get it in ways they never imagined.

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GOP: Governor Deficit's (aka Jon Corzine) Budget

PolitickerNJ.com ran an article based on the GOP criticism of Jon Corzine's budget scheduled to be debated this week. The article listed Corzine's ill conceived "time bomb", or bad decisions for today that we will pay for horribly tomorrow:

The Corzine Pension Deficit -- Governor Corzine's budgets have underfunded the pensions off teachers, police officers, and other government employees. The total during his administration, including for fiscal 2010: More than $7.5 billion. This includes $6.5 billion in unpaid state contributions, and incredibly irresponsible legislation this year that allows municipalities to defer more than $1 billion in payments to the funds.

The Corzine Federal Aid Deficit – Governor Corzine has relied on $2.2 billion in one-time federal stimulus aid to create the illusion he is cutting that much in spending. He didn't cut this spending. He merely used federal aid to pay state bills. Next year, that federal money will not be available. The governor hasn't provided an answer on how he will fill this $2.2 billion addition to next year's deficit.

The Corzine 'Temporary' Tax Deficit – The governor is relying on more than $1 billion in tax increases this year that he is labeling "temporary." He is raising the income tax and eliminating the deductibility of property taxes for many middle class residents. Again, the governor hasn't told legislators what he plans, if anything, to eliminate this $1 billion hole next year.

The Corzine Property Tax Rebate Deficit -- More than 1.7 million New Jersey homeowners who got rebates in the past will not get them. The governor says the cancellation of rebates is temporary. He doesn't say where he will find the $1 billion needed to restore them.

The Corzine Unemployment Fund Deficit – Governor Corzine will borrow $1.6 billion from the federal government because of past raids on the unemployment benefit fund. He has no announced plan for how he will pay this loan back.

The Corzine Debt Service Deficit – The governor will skip $450 million of payments on bonds next year. He hasn't said one word on how much extra this will cost taxpayers over the long haul, or where he intends to find the money to pay for the borrowing in the future.

The Corzine Biden Buyoff Deficit – The governor has promised a 7 percent pay increase to state workers, half that will come 12 months from now and the other half in 18 months. This will cost the state $350 million. Again, the Governor has committed to a plan that will cost taxpayers for decades without finding a way to pay for the expense.

The sad thing about the Governor's budget is that while he is getting creative in kicking the can down the road, he once again does not make a single difficult decision. He has not cut people, he has not cut patronage, he has not cut back over generous services that the state can no longer afford and he has not decreased any part of the budget in a meaningful way. This is the same cowardice he has shown during every budget cycle.

President Obama keep harping on the failure of the financial industry which has hurt every segment of our economy. Jon Corzine was one of the people who became rich during that time and we now see that his enrichment was not based on competence. I wonder when we will hear President Obama criticize Corzine and his destructive greed and incompetence?

Crickets chirping....

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Some thoughts from former NJ residents...

My wife and I recently took a long weekend off down south to visit some former lifetime NJ residents. These were folks who were born and raised here in the state and had all of their family here as well. So I was curious whether or not they regretted their decision to leave the state 8 years ago.

One of our friends was very emphatic. No way no how would they ever return to the Garden state. Even with the current economic conditions, business is good enough, they make less than when they lived here but take home more. All in all a good deal and a much better standard of living.

The other friends moved nearby. Again, no one has any desire to move back and have been attracting other family members to come. I had an interesting conversation with one of our friends who took a job as a equipment operator for the state. He told me that he was following the news in NJ that state workers wouldn't give up their raises or accept temporary furloughs to save money and cut the state's budget deficit. I was curious to see his reaction.

He went off that the people who work for the state of NJ are nuts. If his current state asked him to take days off as a way to save his job-he is in 100%. If his current state pared back a raised that was already agreed-he would accept it. He said everyone is in it together in these tough economic times and we should all be happy we have jobs. No one is entitled to anything.

Indeed.

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