Raising the Cost of Living In New Jersey

Governor Jon Corzine proposed a $30.9 budget for fiscal year 2007, a 9.2 percent increase in spending over last year. This budget would increase state spending by $2.6 billion and impose $2 billion in new or increased taxes.

Taxpayers in the state cried foul, with poll after poll indicating a preference for spending cuts to balance the state’s budget as opposed to enacting new or increased taxes. As a last resort, New Jerseyans have stated a preference for raising the state’s sales tax from 6 to 7 percent rather than increasing the state’s income tax.

So what are the Democrats in Trenton considering as the July 1 deadline approaches for enacting a new budget? From today’s Courier Post Online:

Tax Increases
- Imposing a 2.5% surtax on federal income taxes.
- Increasing income tax rates on those earning more than $300,000 to $500,000.
- Raising taxes on for- profit health insurance companies
- Taxing profits earned in foreign countries by New Jersey-based companies

Other ‘Revenue Raisers’
- Confiscating the reserves of non-profit insurers, such as Horizon Blue Cross Blue Shield of New Jersey.
- Taking money from the state's Unemployment Insurance Fund.

Budget Cuts
- Eliminating Corzine’s proposed increase in property tax rebates
- Cutting back on Corzine's proposed $1.3 billion contribution to the state’s pension fund by $300 million.

In other words, business as usual – increasing the cost of living and doing business in New Jersey. What a plan!