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The Casual BS of Christie - Is NJ the Highest Spending State?

by: Jersey Jazzman

Mon Aug 23, 2010 at 10:51:48 AM EDT

promoted by Rosi

So I'm gearing up for Pension Week at Jersey Jazzman (yes, I'm bursting with excitement, too), and I come across a video from CNBC (below the jump) - Christie's first national interview after his election.

We already know Christie keeps saying we're "the most overtaxed people in America," (4:28). And we know that's not true.

But here he also claims: "We spend more on providing services... " (5:53).

Is it true? Is our spending the highest in the nation?

Well, here's a nifty little interactive map that compares state sending and taxes; where does NJ stack up (#1 rank means highest taxes or spending)?

Jersey Jazzman :: The Casual BS of Christie - Is NJ the Highest Spending State?

Spending per capita is total state and local government spending spread over a state's population.
NJ Rank: 6
Spending burden is total state and local government spending as share of total state personal income.
NJ Rank: 40
Tax burden per capita is total tax collections spread over population.
NJ Rank: 5
Tax burden on income is the bite that all taxes take on state's total personal income.
NJ Rank: 8
Tax reliance is taxes as a share of overall (non-federal) revenue.
NJ Rank: 2
Fee reliance is fees as a share of overall (non-federal) revenue.
NJ Rank: 46

This is a family blog, and I want to put this politely, but: Chris Christie is a BS artist. We don't "spend more on providing services" than every other state.

These numbers actually tell quite a tale. Our reliance on taxes and lack of reliance on fees means we put far more of our spending on the backs of taxpayers than other states. Since state and local taxes are regressive - especially the property tax, which we lean on very heavily - we shift more of our burden on to the middle class and working poor. I'm no expert on state/local spending (yet), but I'll guess the bulk of those fees aren't drivers licenses - they're fees paid by businesses, and likely large businesses.

Further, our high spending per capita combined with a low spending burden implies we are a high-income state (we are) that has to spend more to provide services because our costs are higher - but we keep our spending low as a percentage of our economy, which is where it really counts.

So let's cut the crap about our spending being so out of control, Governor - it isn't, at least not compared to other states.

http://www.youtube.com/watch?v...

Tags: budget, spending, Christie, (All Tags)

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The Casual BS of Christie - Is NJ the Highest Spending State? | 7 comments

great post (4.00 / 1)

Frank LoBiondo Record and Jon Runyan Watch

by: Hopeful @ Mon Aug 23, 2010 at 14:59:35 PM UTC

by: you @ soon

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one thing we are #1 in (0.00 / 0)

is sending more money to the federal government than we get back. We have been dead last for a while - getting far less (around 60 cents per dollar) than ANY OTHER STATE.

Tod Theise, running against Scott Garrett, has a plan that could substantially help NJ (even close that $9 billion hole) in this area.

Sadly, Christie didn't even want to hear Tod's idea - said that he would talk to Tod only if he won his race.

As I've written a few times, Christie can actually do some real good things - if he wants to. Whether it be property tax, whether it be investing in infrastructure or a slew of other things - Christie would rather demonize others than actually work towards a solution.

That's really what it comes down to - no real solutions but a lot of finger pointing and favors for his cronies.

Scott Garrett - on the wrong side of, well, everything.

by: Adam L @ Mon Aug 23, 2010 at 17:21:06 PM UTC

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good post (0.00 / 0)

I hope Christie doesn't see the data on fees, but then he's already been trying his best to raise this ranking.
The fact that the tax burden total over person income total is low argues for the millionaire's tax.

"The work goes on, the cause endures, the hope still lives, and the dream shall never die." - Sen. Ted Kennedy

by: Bill Orr @ Mon Aug 23, 2010 at 21:29:48 PM UTC

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That report is from 2007 ! (0.00 / 0)

our sales tax already has risen by another 16%(thank you Corzine ...fees corzine raised over 52 new fees .....get some new material At least I've found a 2008 but don't let facts get in you way ...http://www.taxfoundation.org/files/sr163.pdf

by: speedkillsu @ Mon Aug 23, 2010 at 22:07:50 PM UTC

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The Tax Foundation? (4.00 / 1)

It's a nice rhetorical flourish to say something like "don't let the facts stand in the way," but says more about what you consider "facts" when you consider that:

The Tax Foundation report to which Christie often refers was written by a Heritage Foundation researcher who also can also be found at the Heartland Institute.

You know, the ones who took money from Phillip Morris to say that cigarette smoke is harmless.

THIS is the source of your facts?

Caution, friend.

"We do not consider patriotism desirable if it contradicts civilized behavior." - Friedrich Durrenmatt

by: KendalJames @ Mon Aug 23, 2010 at 23:47:26 PM UTC

[ Parent ]

Well Put (0.00 / 0)

Never, ever, EVER trust anything from the Tax Foundation:

http://www.cbpp.org/cms/index.cfm?fa=view&id=3203

Several figures in the Manhattan Institute report comparing tax levels in New Jersey and other states rely on data from the Tax Foundation. Unlike the official Census data, the Tax Foundation figures are speculative projections for current-year taxes, and the Tax Foundation frequently revises these projections radically when actual data become available. (For other issues regarding the Tax Foundation state-level estimates, see Nicholas Johnson, Iris Lav, and Joseph Llobrera, "Tax Foundation Estimates of State and Local Tax Burdens Are Not Reliable," Center on Budget and Policy Priorities, March 27, 2007.)

It is worth pointing out that Christie's source for saying we are the #1 taxed state is the Tax Foundation.

http://jerseyjazzman.blogspot.com

by: Jersey Jazzman @ Tue Aug 24, 2010 at 00:42:50 AM UTC

[ Parent ]

Adding... (0.00 / 0)

I've read this Tax Foundation report many times - the central premise is that much of the tax you pay as a resident of a particular state may go to another state, and that contributes to your total tax burden; a specific example the TF uses is going to Disneyworld and paying FL hotel tax is a tax burden on you as a citizen of NJ.

Fine - lord knows we are a bedroom community and our citizens are a big part of the tax base for Philly and NYC.

But Chritsie's central argument from day one is that our problem is a spending problem, not a taxing problem. And that's BS, pure and simple.

Were he making a stink about how our citizens pay to much to PA and NY, I'd actually be backing him up, but that's not the case - he's saying we spend too much in NJ. As misguided as this TF report is, even it doesn't back him up.

http://jerseyjazzman.blogspot.com

by: Jersey Jazzman @ Tue Aug 24, 2010 at 00:56:27 AM UTC

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