Tuesday, June 30, 2009

New Jersey, Taxes and Us – Imperfect Together

When I and my family moved to Bridgewater, New Jersey, in 1976, this state was just about to throw away its distinction of being one of the few states in the Union with no income tax. The ‘new’ income tax, we were promised, would reduce property taxes statewide, because local school districts would no longer be dependent upon them as the main source of funding.

That bad piece of legislation emanating from Trenton was inspired by coercion from our own NJ Supreme Court: The result would turn out to be just another broken promise by legislative power brokers sequestered on this side of the Delaware.

The New Jersey State Income Tax became simply another cash cow feeding the state treasury. Undaunted, real estate taxes continued their climb to become the nation’s highest: Homeowners would not see any effective structural relief.

Thirty-three years later, as Governor Corzine implements a legislatively approved $29 billion budget – admittedly $4 billion less than last year – New Jersey homeowners will get stiffed again as they watch the reduction of the homeowners rebate for low middle-income taxpayers, and its elimination for renters. The man from Goldman Sachs gets to suspend the property tax deduction for high income earners. For others, it’s dwindling down to $5,000.

In a prior post, I listed many of the things that I like about The Garden State. Today, I’m highlighting an element about its dark underbelly. There needs to be an ongoing public dialogue about the pros and cons of life in New Jersey, a naturally blessed state afflicted with so many mendacious politicians.

There are plenty of good ones out there – I wish they would prevail.

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