Corzine Scraps Sales Tax Increase in Favor of "Soak The Rich" Plan

Governor Jon Corzine’s plans for closing New Jersey’s budget gap are becoming clearer as we move closer to the March 21 state budget address.

In addition to the “revenue-raisers” and “cuts” Corzine had previously leaked to the press, we correctly predicted reductions in municipal aid to suburban towns, cuts in aid to surburban schools, reduction in Corzine’s proposed contribution to the state worker’s pension fund and the slashing of his campaign promised property tax rebates.

Now here comes the surprise from an article in today’s Star-Ledger. The increase in the sales tax from 6 to 7 percent appears to be off the table. It looks as though a few other people think increasing taxes matter:

Judging by interviews with some Democratic Assembly members yesterday, none of whom wished to be identified, there seems to be little appetite for a sales tax increase in the lower house.

One said flatly he would not vote for it. Another said if Corzine does recommend it, he would urge its elimination before the budget's passage in June. A third said he worried it would give Republican Tom Kean Jr. a major issue in his U.S. Senate campaign against Sen. Robert Menendez, D-N.J.

Corzine is now left with his ideas for dramatically increasing the tax on cigarettes, expanding the sales tax to services previously untaxed and a surtax on federal income taxes.

Instead of a sales tax, some legislators expressed a preference for slapping a temporary surtax on federal income taxes, an option Corzine has said is a possibility. It would mainly affect those earning $100,000 or more.

The justification for the surtax on federal income taxes is right out of the Democrat Party play book, “supporters argue it would effectively take just part of those taxpayers' federal tax cuts.” No mention of the millions taken off the federal tax rolls as a result of the “Bush tax cuts.”

Corzine continues to spin his budget plans:

"We're still looking at all the various options that are on the table. I have talked about shared sacrifice in this.”

The only people doing the sacrificing are a select group of taxpayers as a review of Corzine’s budget plans still left on the table makes clear. Assemblyman Joseph Cryan (D-Union) who also is chairman of the Democratic State Committee summed up the Democrats’ position well, “People are ready for a proposal that shows cuts and revenues that are fair to most people." The concept of being fair to everyone does not compute with the likes of Corzine and Cyran.

In other words, it’s the tyranny of the tax receivers over the taxpayers. To Corzine and Cryan that’s considered fair. We elected a socialist as Governor, did anyone expect Corzine to govern otherwise? Cue cheers from thel eft.