Would you prefer a NJ tax cut of $1.5 billion or a tax increase of $1.3 billion?

Let’s be frank, it’s natural for people to want lower taxes. Such is what gubernatorial Republican candidate Kim Guadagno promises. Democrat Phil Murphy promises the opposite. Nonetheless there are compelling reasons why NJ needs to raise more income tax revenue.

Income tax revenue is constitutionally dedicated to fund property tax relief, which includes school aid, teacher pensions, municipal and county aid and direct relief initiatives like rebates. With NJ receiving greater income tax revenue there are morer funds available to reduce the increasing burden on property tax and meet needs for school aid and pension funding. An income tax structure which calls for higher taxes to the wealthiest achieves this objective.

Larry Summers, the economist and former Treasury secretary offers three reasons why taxes should increase.

Phil Murphy’s tax plan vs Guadagno’s tax plan

Phil Murphy for GovernrorPhil Murphy: He’s pledging to adopt a slate of tax-policy changes that include creating a new top-end income tax rate of 10.75 percent. Analysts from the nonpartisan Office of Legislative Services have estimated such a rate which would be levied only on earnings above $1 million, could generate roughly $600 million in new revenue.  His plan which involves other tax proposals, including legalizing and taxing pot smokers, would raise roughly $1.3 billion a year. Such would provide significant budget relief for a state that has suffered 11 credit-rating downgrades since Gov. Chris Christie took office, all of them largely due to a failure to collect enough money for schools, pensions, health benefits for public workers and other rising costs.

Kim Guadagno: Her plan is a novel “circuit-breaker” approach to providing New Jersey residents with relief from the state’s ever-rising property tax bills. She says It would reduce taxes by $1.5 billion, but her proposal has also met with skepticism and claims of irresponsibility, since she hasn’t identified a sure source of revenue to pay for its estimates.

 

Do we really want our over-strained NJ State budget to have less revenue to meet the growing costs of our essential obligations?

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ISSUES IN THE GUBERNATORIAL RACE: See:  Where they stand on increasing the minimum wage, legalizing marijuana, and gun background checks.

Comments (2)

  1. Rosi Efthim

    Here’s what fascinates me today: Observer NJ’s coverage of this issue. In its several iterations and changes of name, Observer NJ’s generally been a right-leaning media outlet masked as an objective straight news outlet. True when David Wildstein was hyping the rep of his high school boycrush Chris Christie behind a “Wally Edge” secret identity. True when Jared Kushner’s money was running the joint. Not to impugn Observer’s staff and editors, but it is what it is.

    And so here’s Observer just today, talking about Guadagno’s key issue, like even writing about her tires them (or at least writer Alyana Alfaro):
    “Guadagno’s familiar campaign promise to slash property taxes for homeowners” (sounds like: zzzzz)
    “Guadagno’s attack ad does not mention that Murphy’s tax hikes would target the top income earners in the state. The ad also does not mention that Murphy’s plan relies on legalizing and taxing recreational marijuana.” (sounds like: Guadagno’s complaints of Murphy’s plan only make sense if you don’t actually read them)
    “When discussing her plan in the past, Guadagno has more often focused on another figure: $3,000, the maximum a New Jersey family could save under her plan. But those savings would apply only for the highest-paying residents.” [sounds like: Don’t read my plan too closely either, folks)
    “The ad also rehashes regular promises that Guadagno has made on the campaign trail …” (again: zzzzz)
    “ … Quinnipiac poll has Guadagno 25 points behind Murphy, a former Goldman Sachs executivereleased Quinnipiac poll has Guadagno 25 points behind Murphy, a former Goldman Sachs executive” (yeah, for a reason)

    Reply
    1. Bill Orr (Post author)

      Yes, gone are the die-hard Christie reporters. Sal Rizzo, now political editor, and formerly from the Star Ledger and the Record brings more objectivity and sound reporting. Same for Christian Hetrick formerly of Press of Atlantic City. Also, owner Jared Kushner has no love for Christie.

      Reply

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