"Knowledge will forever govern ignorance

 and a people who mean to be their own governors

 must arm themselves with the power which knowledge gives."

Wednesday, June 21, 2006

New Jersey Democrats Squabbling Their Way To Higher Taxes

Democrats are “squabbling“in Trenton over Governor Jon Corzine’s spending and tax plan for next year. The Governor and his staff are making plans to shut down state government, keeping only essential services going, in the event a budget agreement is not reached by July 1. State taxes will continue to pour into Trenton no matter what happens by the deadline.

Assembly Speaker Joseph Roberts (D-Camden) says Democrats are opposed to increasing the sales tax for fear it might anger voters and because “increasing the tax would lessen property tax reform options”.

That’s what the Democrats are “squabbling“ about - which taxes can they raise and what else can they begin taxing to increase state spending by 9.2%. And as Roberts has made clear, the Democrats' idea of property tax reform is jacking up state taxes to temporarily reduce property taxes.

New Jersey imposed an income tax in 1976 under the guise of property tax reform. How’d that work out for you? You’ll contribute your share of the $11.6 billion for state income taxes next year and pay the highest property taxes in the nation.

The amount you pay in combined state and local taxes can never be reduced until government becomes more efficient and spends less. Paul at NJ Fiscal Folly found this link to the NJ State Government Workforce Profile, which includes current and historical headcounts for state and local government. As shown in the report, the increase in government workers far exceeds the increase in the state’s population. Which means government is becoming less productive and more costly with each passing year.

Corzine said he “doesn't like to talk about these negotiations in public, but has decided to do so now because the state risks bankruptcy if it doesn't change course soon”. "We're setting ourselves up for the kind of crisis New York City had in the 1970s," he says.

Corzine’s right about the prognosis for the state’s future if we don’t change. Only he has failed to take the actions necessary to reduce costs and make the state run more efficiently. He’d rather increase spending and taxes this year and put everyone through the same crisis and hand wringing next year.


At 11:44 AM, Blogger WjcW said...

If the government shuts down for say two weeks. Are we then obligated to pay the workers back compensation for the two weeks the government was idle? How does that work? It would be a real dissappointment to have the Gov. shut the place down only to realize it doesn't save any money.

At 12:55 PM, Anonymous Anonymous said...

Shut it down for good! Throw da bums out.

At 1:51 PM, Blogger PN said...


Shutting down the government is simply a tactic to get state employees and taxpayers to apply pressure to the legislature to pass a budget. It's just political theater. There's no way the public sector unions will let Corzine actually skip any paychecks, but one or two might be delayed. Hence, there's no real cost savings for the rest of us. Otherwise, we could solve the whole problem by shutting down the government for 1-2 months every year.

Enlighten --

Corzine and the Democrats are guaranteed a crisis both this year and next year. They already know they have structural deficits both years, plus they've got to deal with property taxes too. They're trying to figure out how to spread out and sell all the tax increases they need. Of course, next year we also ratchet up the drama by including government union contract negotiations.

NJ Fiscal Folly

At 8:42 PM, Anonymous persiflage said...

In the last week I have received both mailings and phone calls spinning Corzine's business background and the "responsible" budget he has proposed, and requesting that I contact my representatives and urge them to pass his budget. What I want to know is, who is funding the huge disinformation campaign currently underway in the state, promoting this irresponsible increase in both spending and taxation?

At 7:54 AM, Blogger njgalaxie73 said...

This is a war between the Dems in the north and the Dems in the Central and South.

While some Democrats are protesting Corzine's budget proposal, don't let them fool you. If these Democratic legislators felt as though this money was being distributed fairly then they would have no problem with it whatsoever.

They dislike this budget proposal due to the fact that it doesn't do anything to restructure how money get distributed throughout the state. Taxes are going up but all of the potential revenue this increase will allegedly generate still goes to the party bosses of the north.

These party bosses have a sense of entitlement due to the fact that they get their machine Democrat vote out better than anybody else throughout the state and as Jim McGreevey learned, if you part ways from them, they will bury you.

Jon Corzine is Governor due in large part because Bob Menendez wanted to become a US Senator and needed to get Corzine out of the way. Did anybody here actually think that there was a legitimate "list of potential candidates" for Corzine's Senate seat?

Therefore, Jon Corzine owes the North, primarily the Hudson County machine for solidifying his victory last November. Pretty much the same way a shopkeeper would pay the mafia bribes to scare away their competition. If you don't pay, you're out of business.

Jon Corzine has no other choice but to appease the Democratic party bosses of the north.

To shed a positive light on the subject, squabbling among state Democrats could lead to the first Republican US Senator in 34 years.


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