New Jersey State Budget Hoopla
New Jersey state government has been shut down for:
Democrats in Trenton are still arguing over what taxes to increase and by how much to fund a 9.2 percent increase in state spending. Assembly Republicans have put forward a proposal to cut spending by $2 billion to avoid any tax increases, but Democrats have shown no inclination to address the root of the state’s financial crisis – spending.
New Jersey will be treated to this same budget drama every year until lawmakers in Trenton learn that state spending can not exceed the growth in the state’s private sector without dire consequences. The call for increases in state taxes means that state spending is outstripping the growth our personal and business incomes.
As everyone should know, when you or your business earns more, the state takes its share of your increased earnings. When you spend more, the state takes in more sales taxes. A growing economy produces additional tax revenue without a need for new taxes, surcharges and fees or increased tax rates. For example, without any change to tax rates, New Jersey will take in $1.135 billion more than last year from the state's income tax, a 10.7% increase.
Over the past five years New Jersey has been demanding and getting a greater percentage of our collective income through the enactment of new state taxes and fees. Corzine claims his proposed tax increases are necessary to clean up New Jersey’s financial mess. Lost in all the Trenton hoopla is the stark fact that the state will start the next fiscal year with a minimum of a $2 billion deficit.
That’s right, Corzine is projecting a $2 billion budget gap for 2008, assuming his $1.8 billion in tax increases are enacted this year, income tax revenue increases by an additional $1.190 billion and sales taxes bring in $236 million more next year. Corzine’s budget for 2008 will increase state spending by a minimum of 7.1 percent. The Governor has already set up a state budget crisis for next year by failing to cut spending this year.
Democrats in Trenton are still arguing over what taxes to increase and by how much to fund a 9.2 percent increase in state spending. Assembly Republicans have put forward a proposal to cut spending by $2 billion to avoid any tax increases, but Democrats have shown no inclination to address the root of the state’s financial crisis – spending.
New Jersey will be treated to this same budget drama every year until lawmakers in Trenton learn that state spending can not exceed the growth in the state’s private sector without dire consequences. The call for increases in state taxes means that state spending is outstripping the growth our personal and business incomes.
As everyone should know, when you or your business earns more, the state takes its share of your increased earnings. When you spend more, the state takes in more sales taxes. A growing economy produces additional tax revenue without a need for new taxes, surcharges and fees or increased tax rates. For example, without any change to tax rates, New Jersey will take in $1.135 billion more than last year from the state's income tax, a 10.7% increase.
Over the past five years New Jersey has been demanding and getting a greater percentage of our collective income through the enactment of new state taxes and fees. Corzine claims his proposed tax increases are necessary to clean up New Jersey’s financial mess. Lost in all the Trenton hoopla is the stark fact that the state will start the next fiscal year with a minimum of a $2 billion deficit.
That’s right, Corzine is projecting a $2 billion budget gap for 2008, assuming his $1.8 billion in tax increases are enacted this year, income tax revenue increases by an additional $1.190 billion and sales taxes bring in $236 million more next year. Corzine’s budget for 2008 will increase state spending by a minimum of 7.1 percent. The Governor has already set up a state budget crisis for next year by failing to cut spending this year.
"People of our great state are being imposed on because there's not a budget to consider," Mr. Corzine said. "There's no budget to veto, no budget to amend and no budget to sign."At today’s special legislative session, Assembly Republicans should hand Democrats last year’s state budget and ask them to post it for a vote. Spending will not exceed reoccurring revenue and the surplus can be contributed to the state worker pension funds.
Posted by Enlighten-NewJersey @ 11:45 PM
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4 Comments:
It's nonsense like this that increases voter turnout at the polls come November.
Take it from somebody who used to manage a convenience store. I know first hand how pissed off old people get when they're unable to buy their lottery tickets.;-)
I saw Corzine on TV yesterday and he sat there and told the interviewer that he cut 2 billion from the budget. What a bold faced liar.
So... Let's shut the NJ Gov't down for a couple of weeks.. Figure out what's not missed and eliminate it.. Yeah right.. Give them more money and they will just figure out another way to spend it.
I really like President Bush's view on tax increases. He said that it is a myth in Washington that tax increases help balance a budget. Washington people will say "Sure, we can balance the budget. Just let us raise taxes."
Meanwhile, instead of using that extra money to balance the budget, they find some other way to waste all of the extra they're taking in.
This analogy applies to EVERY level of government and if there's ever a prime example of that anywhere, you'd damn well better believe that it's New Jersey.
There is no guarantee that if and when tax increases of any kind go into effect that the money is going to go where they say it's going to go.
We should be, and the operative word is SHOULD be smart enough by now to know what the real agenda of New Jersey Democrats is. To continue to grow government creating more tax receivers than taxpayers so they can hold on to their power.
South Jersey Democrats aren't getting money like the party bosses of the north to assure that their seats are untouchable and it just frosts them! South Jersey feels neglected and ignored and this battle has been brewing for years. All of my friends on this blog are aware of this because we actually read newspapers on an everyday basis!
We need to remember that this battle over the state budget is primarily Hudson County bullying the rest of the state and that these are the kinds of tactics Bob Menendez has thrived on ever since he learned them from his mentor Bill Musto.
He may be a US Senator but that doesn't take away from the fact that he's the captain of the Democrat's ship in New Jersey. NOT Jon Corzine.
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