Codey Considers Income Tax Hikes – End of 401k Deductions

Acting Governor Codey is considering a rollback of income-tax cuts from the 1990s and the removal of 401(k) tax shelters as options for balancing a $4 billion budget deficit, according to two people involved with the discussions.

What a novel idea – raise income taxes, eliminate the 401K dedication - making it harder for people to save for retirement. We will remind Acting Governor Codey – New Jersey is in a fiscal crisis because it spends too much, not because New Jersey’s taxes are too low.

The Acting Governor should be developing a list of programs to be cut or eliminated to balance the state’s budget. Also, he should not consider any additional spending, as he did in his State of the State address. Any additional spending is irresponsible. Trim back or eliminate all non-essential programs and the state would find it’s treasury in surplus.

We could probably find a billion dollars or so that could be cut from the budget, just from the programs mentioned in our posts over the last several months.