NJJP: They Want to Make NJ's Backward Tax System Even Worse

John Whiten


The governor made clear in last week's State of the State message that his quest to deliver further tax cuts to some New Jersey taxpayers is not over.

Put aside for a moment the fact that lower taxes don't drive state economic growth (and actually hurt that growth), and that businesses don't relocate primarily based on their tax bills.

With any tax cut, it's also worth asking: Who would benefit? While the governor gave no details in his address, he clearly favors tax cuts to help those New Jerseyans who already pay the smallest share of their income to taxes, as I note in a new op-ed published in Sunday's Star-Ledger.

You see, New Jersey already calls on low-income and middle-class New Jerseyans to pay greater shares of their incomes in state and local taxes than their wealthy neighbors. New data from the Institute on Taxation and Economic Policy's latest "Who Pays?" report lays it out:

• New Jersey's poorest households - those earning less than $22,000 a year - pay 10.7 percent of their income in state and local taxes.
• Households earning just a touch more - between $22,000 and $43,000 - pay 9.2 percent of their income. In the middle, households earning between $43,000 and $71,000 a year pay 9.1 percent of their income, and those earning between $71,000 and $119,000 pay 9 percent.
• In contrast, households with incomes of more than $758,000 a year - the top 1 percent - pay just 7.1 percent of their income in state and local taxes.
• And while the governor was vague in his call for the Legislature to "lower taxes further," not mentioning any tax in particular or the size of a reduction, it's not hard to figure out just what he likely means.

In the last few years, the governor has championed a 10 percent across-the-board income tax cut, and has expressed support for reducing or eliminating the estate or inheritance taxes. Any of these tax changes would greatly favor those who already pay the lowest share of their income in state and local taxes. In the process the tax cuts would sap the state's resources so much it would substantially damage the state's ability to pay for essential public services that average people rely on each day, like our public schools.

The bottom line: New Jersey must focus on building a better future, but these tax cuts aren't the way to do it.

Read the new op-ed here.

DEM CHAIR SAYS GOV. CHRISTIE'S STATE OF STATE MISSES THE MARK

(Trenton) – New Jersey Democratic State Committee Chairman John Currie argues that Chris Christie's fifth State of the State proves he is neglecting his gubernatorial responsibilities and losing touch with New Jersey.

"The governor spent almost 40 percent of last year traveling outside of New Jersey—an almost unbelievable 137 days,” said New Jersey Democratic State Committee Chairman John Currie. “Regardless of whether Governor Christie is hopping on a luxury jet to Texas or flying commercial to Wisconsin, it seems pretty clear that the public interest in New Jersey is the last thing on his mind. New Jersey families deserve a governor committed to hard work and sacrifice, and not someone chasing his selfish political aspirations."

In today's speech, the governor missed the opportunity to demonstrate a genuine interest in compromise, cooperation or contrition, and he showed little compassion for the families struggling in the poor economic environment that his policies continue to foster. The governor also failed to express remorse for abusing power and resources to selfishly and shameless promote the interests of his political donors and himself -- behavior that is prompting new investigations.

Unfortunately, the Christie record is one of neglecting Sandy survivors, shorting pensioners $2.4 billion, irresponsibly borrowing from the Transportation Trust Fund, and boosting property tax burdens, to name just a few of the Christie administration's numerous policy failures. Currie says that even though the governor has ensnared himself in legal and ethical scandals, he needs to do his job.

STOP BREAKING PROMISES AND BURDENING MIDDLE CLASS WITH YOUR MISTAKES, CURRIE SAYS TO CHRISTIE

(Trenton) — As Governor Chris Christie prepares his budget plan for next year, New Jersey Democratic Party Chairman John Currie is urging the scandal-plagued governor to tell the truth about the State's fiscal situation and the impact his inflated revenue projections and poor financial decisions have had on New Jersey's middle class taxpayers in his Budget Address on Tuesday.

News reports indicate that Governor Christie’s poor economic stewardship has grown the state's budget shortfall to an estimated $565 million while New Jersey's middle class families have been forced to shoulder the burden. 

“For four straight years, Chris Christie has stuck it to New Jersey’s middle class families with his failed conservative priorities and shady accounting,” said John Currie, Chairman of the New Jersey State Democratic Committee. “He's broken promises to state workers and school children alike, and he's actually refused money from the federal government. It is cowardly for him to ask women, children, and the hardest working among us to shoulder the burden for his mistakes while he continues to inflate revenue projections and ignore simple fiscal realities. To restore common sense to the state budget, Governor Christie should first cut out all of his nonsense and tell taxpayers the truth.”

What to watch out for in the governor's budget blueprint:

    •    Increased Property Tax Burdens
As NJ Spotlight reported, during the last fiscal year, Christie decided "to shift property tax rebate payments, which average $518 for senior citizens making up to $150,000 and $409 for other homeowners earning up to $75,000, from May to August… to cover a $473 million revenue shortfall."

    •    Plans to Pinch Public Worker Pensions
Governor Christie reportedly is looking to further pinch from public workers' state pension funds in order to address the "nearly $1 billion" shortfall expected under the plan he enacted. This would be consistent with the national GOP playbook which calls for dismantling worker protections.

    ▪    Cuts that Undermine Educational Opportunity
Chris Christie’s ongoing fight with educators and the state’s educational system, have undermined the ability of New Jersey’s school children to learn and achieve their full potential. In 2010, the governor made $1 billion in cuts to education in violation of the law, putting at-risk and poor students at an increased disadvantage. 

    •    Excuses For Not Funding For The Transportation Trust Fund
Borrowing for the Transportation Trust Fund (TTF) under Christie will be at record high, while pay-as-you-go financing is at all-time low. As NJSpotlight explained the cost of the bond premiums used to plug a funding hole will be paid off by taxpayers in higher-interest payments over the next 31 years.

    •    Tax Cuts for the Rich
Data demonstrates that despite the blustery GOP rhetoric, trickle down economic policies (also known as tax cuts for the rich) do not work. And, as one Budget Analyst noted, “the state’s finances can ill afford talk of a tax cut.” 

    •    Rosy Growth Scenarios
New Jersey Policy Perspectives reported that the state’s reliance on “overly optimistic revenue projections means the state continues to face a budget shortfall – one that could be as large as $1.16 billion.”

    •    Health Care Cuts
As the Star-Ledger and Politifact reported, the nearly $7.5 million for family planning services that Christie eliminated from his first budget for fiscal year 2011 would have been matched 9-to-1 by federal funds. In other words, rather than saving $45 million a year, and provide more coverage, Christie chose to deny thousands of women access to mammograms and other basic health care services. 

NJ WATCHDOG: 'Heck' of hypocrisy in Christie's call for reform

For Immediate Release:

There's a 'Heck' of hypocrisy in Chris Christie's call for disability pension reform during his State of the State address.

"Our pension system is burdened by some who collect disability retirement because they claim they are 'totally and permanently' disabled, but are now working full-time," said New Jersey's governor, ignoring the problem in his own office.

Adam J. Heck, one of Christie's state lawyers, has collected a $110,000 salary plus nearly $45,000 in tax-free disability retirement checks from the state.

At age 28, Heck retired as a Middletown Township police officer in 1993. He was struck on the hand with a hockey stick while responding to a domestic dispute, according to state pension records.

Heck is one of 18 'disabled' state employees who double-dip $2.2 million a year – $1 million in tax-free accidental disability pay plus $1.2 million in salaries – named in a New Jersey Watchdog investigative report last year.

It is only the tip of what happens in a police disability pension system that pays out $200 million a year. The New Jersey Watchdog report did not encompass pensioners who have returned to work for county or local governments – or the private sector – while collecting benefits for not being able to work.

The story is now online at http://newjersey.watchdog.org. The direct link is http://newjersey.watchdog.org/2014/01/15/heck-of-hypocrisy/.

Christie's State of the State Address: A Bunch of Misleading Statistics

This Commentary appears online at the New Jersey Newsroom


By Senate President Steve Sweeney

Governor Christie’s State-of-the-State was long on rhetoric, but short on ideas. It reminded me of that old Wendy’s commercial: “Where’s The Beef?” The governor had a unique opportunity to map out a version for New Jersey moving forward. He failed badly to do so, and as a result, people in New Jersey are no more certain now than they were before of what the future holds.

The governor spent most of his speech discussing the heroic efforts and actions of our first responders and everyday residents during Sandy. Naturally, we all share his pride in our fellow New Jerseyans. But what they need is more than a pat on the back: they need specific answers on how they can move forward with their lives. People in Sayreville need to know what is going to happen to their homes, which were completely destroyed, yet they still have to pay their mortgage and property taxes.

Folks in Moonachie need to know what is going to happen to the municipal infrastructure in town, which was washed away by flood waters.

Most importantly, what the governor failed to do was present the true state of the state in New Jersey. He gave a bunch of misleading statistics meant to show everyone that the sun is shining in our state, when it is actually raining. The reality of New Jersey is that we face serious problems that this governor has ignored and will continue to ignore. Middle class families, women and the working poor have gotten the short end of the stick under this administration. The governor’s speech gave no indication this is going to change anytime soon.

The governor not-so-conveniently left out several facts in his speech that you are not likely to hear him discuss anytime soon. The state’s unemployment rate is 9.6%, nearly two points above the national average and among the highest it has been in 35 years. But a better indicator of how poorly this governor is doing on the economy is that our neighboring states are all doing substantially better than New Jersey, and we have the fourth highest unemployment rate in the country.

You won’t be hearing the governor talk about the fact that the middle class in New Jersey has shrunk by 3%, or that the wealth gap in New Jersey between the rich and the poor is the largest it has been since the Great Depression. The rate of growth in personal income in New Jersey has dropped, and we now rank 45th in the nation in that area. Our poverty rate has increased to 11.4% of the population, a figure that has gone up every year under this governor.

You probably also won’t hear the governor talk about the 7% of all New Jersey homeowners who are currently in the foreclosure process, a figure representing more than 100,000 people. After the federal government awarded the state $300 million to help keep these people in their homes, the administration essentially sat on the money, using only 10% of the funds to help just 750 homeowners. While they sat on those funds, people in New Jersey lost their homes.

It also bears noting that Governor Christie ran for office on a platform of improving New Jersey’s economy. In fact, he specifically attacked then-Governor Corzine by saying, “I don't know how when unemployment continues to go up that you can say that's a success.” Yet, as New Jersey’s unemployment rate continued to skyrocket during 2012, the governor acted as if all was well in the Garden State, using the same rhetoric he attacked his opponent for.

What is perhaps most disturbing though is that after three years in office, this governor has failed to produce a single comprehensive plan to create jobs and grow the economy in New Jersey. When we presented him with a package of over 30 bipartisan bills, he vetoed nearly all of them. Instead of presenting his own plan, he simply ignored the issue, and has continued to ignore it to this day.

The bottom line is that the governor has willfully ignored working people in this state for three years: their problems are not, and have never been, his problems. His State-of-the-State address did nothing to change that. The people of New Jersey deserve a leader who is willing to look behind the numbers, like the unemployment rate, and recognize that they are not just numbers – they are people.

Live Stream Of Governor Christie's State of the State Address

Looking to watch Governor Christie's State of the State address? If so, you can watch it below. The Governor is expected to address the State Legislature today, starting at 2 pm.

Watch live streaming video from governorchrischristie at livestream.com

HOLD CHRISTIE ACCOUNTABLE – HE CAN’T HIDE FROM 3-YEAR RECORD OF FAILURE & MISPLACED PRIORITIES

Christie’s State of State Will Surely Ignore Failing New Jersey’s Families

(NEW JERSEY) – In 2009, candidate Chris Christie said we must hold a governor accountable… the same holds true today. Governor Christie runs a remarkable public relations machine and does a tremendous job bending the narrative in his favor, while simply ignoring the facts that don’t fit his polished story. However, the State of the State is about reality – not fiction.

To hear Christie talk these days, one would think his first day as Governor started the morning after Superstorm Sandy reached New Jersey’s shores. However, the dark clouds of Christie’s policies have been hovering over our state for a full three years. The people of New Jersey are strong and resilient, but our state has been neglected and is in a worse state of disrepair due to Christie.

Everyone agrees Superstorm Sandy was a hard hit for the state and devastated many families and businesses. But it is unfortunate and cynical for Christie to use the devastating storm as a smokescreen to obfuscate his anemic record of failures and misplaced priorities. And the governor should have to answer for his full record that has consistently hurt New Jersey’s middle-class.

The same problems New Jersey faced before Superstorm Sandy are still facing our state today. So, here are some of the facts that Governor Christie hopes you’ll forget. Because New Jersey has these issues – that predate Sandy and still matter:

• Unemployment is still hovering around 10%.
• Since Governor Chris Christie took office, New Jersey has consistently trailed the rest of the nation when it comes to jobs... and still does.
• Under Christie, New Jersey reached the largest gulf between state and national unemployment averages since Jimmy Carter was president.
• New Jersey residents suffered a gigantic net jump in property taxes since Christie took office – at one point reaching 20%.
• New Jersey ranks as the 46th worst-run state in America.
• New Jersey’s state economy ranks 47th.
• New Jersey’s business climate slipped to 41st.
• New Jersey now has the 2nd highest percentage of mortgage loans in foreclosure in the nation – as rates nationally have fallen to their lowest levels since 2008.
• Commuters are dealing with higher train tickets, bus fares and tolls.
• Schools are in disrepair... while teachers are disparaged.
• Higher tuition at public universities and colleges… while aid is slashed.
• 55% of New Jersey highways are in poor or mediocre condition.
• 35% of New Jersey bridges are structurally deficient or functionally obsolete.
• Christie claimed a mythical "Jersey Comeback" and based his budget on rosy revenue projections that were far from coming true well before Superstorm Sandy.
• There is one stat in which Christie has New Jersey leading the nation. We just slipped to become the number one state that people are moving out of.

****Starting at 2 pm, please follow @JoshuaHenne – who will be livetweeting @GovChristie’s State of the State.

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One New Jersey is shining a light on politicians who act against the best interests of New Jersey’s residents and who seek to divide our state for their own political gain. It is giving voice to the important issues that affect our daily lives. One New Jersey will closely monitor policy positions and actions of elected officials and expose their records on the issues that matter. You can follow One New Jersey on Twitter (@OneNJ) or search for “One New Jersey” on Facebook.

SENATOR BUONO’S STATEMENT ON GOVERNOR’S POCKET VETOES

TRENTON – Senator Barbara Buono (D-Middlesex) released the following statement regarding the Governor’s pocket veto of S-668 and S-3072. S-668 would have provided New Jersey residents who save for their children’s college education through a state-administered college savings plan with a state income tax deduction for their investments. S-3072 would have promoted the establishment of partnerships between institutions of higher education and the business community to increase collaborative research and innovation:

“In these tough economic times , when middle-class families are constantly worried about how they will put food on the table let alone how they will pay for their children’s education, it is indefensible that the Governor has vetoed legislation that would have provided incentives to parents to save for their children’s college education as well as legislation that would have strengthened educational opportunities for the state’s college students, so that they may gain invaluable skills to find good, well-paying jobs.

“By providing families with a tax deduction of up to $10,000 for putting money into their children’s NJ BEST account, S-668 would have encouraged parents to save for their children’s futures. The Governor’s short-sightedness could cost New Jersey’s children and their parents the ability to pay the increasing costs of college, making our future workforce much less prepared for a global economy.

“During Governor Christie’s State of the State address, he touted the need to provide a competitive environment where businesses would choose New Jersey over other states to grow and expand their businesses and to create jobs. His actions speak louder than his words. By pocket vetoing S-3072, he has ignored an opportunity for businesses to partner with academic institutions, such as New Jersey’s colleges and universities, to drive innovation in the state. Not only would this program have helped New Jersey’s students develop skills to prepare them for careers in high-demand sectors, it would also have strengthened our workforce, making the Garden State a more attractive place to start and grow a business.

“As we move into this new legislative session, I hope that Governor Christie puts aside partisan politics, and supports legislation that would truly benefit New Jersey’s children, middle- and working-class families and businesses looking to create jobs that are actually in demand and increase economic security.”

Democrats on right side of affordable housing debate; Republicans only offer re-establishment of regional contribution agreements

The following commentary appeared in today's Asbury Park Press and was written by Vincent Solomeno. Vincent is a life long bayshore area resident and a Monmouth County Democratic committeeman from Hazlet.

For those of you who do not know Vincent, he was named one of “50 Rising Stars in New Jersey Politics” by Politicker New Jersey, he has managed or worked on local, state, and national campaigns. He has worked for Congressman Frank Pallone.

In 2006, Vincent became a Truman Scholar and in 2007, he was selected as a J. William Fulbright Scholar to the Netherlands where he earned a Master of Arts in European Studies at the University of Amsterdam. A Distinguished Military Graduate (DMG), he is a Second Lieutenant in the United States Army Reserve and is training to become a Combat Engineer. 

So when Vincent has an opinion about something it's worth listening to, he is not some loony liberal trying to push mandates down our throats. He is an extremely intelligent and distinguished member of the Monmouth County community who's thoughts and ideas  should be considered:

Democrats must be able to transform the statewide mandate of the Council on Affordable Housing or else be ready for Republican criticism that may diminish Democratic support among suburban voters.

Ex-Bogota Mayor Steve Lonegan recently traveled to Freehold to stump for votes in his campaign for the Republican nomination for governor. He likened his campaign to the American Revolution and compared Gov. Jon Corzine and the Democratic majorities in the Legislature to the tyrants of Europe and Asia.

The 21st-century Gen. George Washington continued with a blistering attack on COAH and promised that, when the general election is through, the self-financed Corzine will be living in one of the program's 40,000 units.

November's election not only will determine who occupies the front office in the state Capitol. It will test New Jersey Republicans' ability to make inroads into the Democrats' legislative majority. Unless Democrats present a compelling narrative for affordable housing, COAH and its cumbersome regulations have the potential to unite the feuding factions of the GOP and erase Democratic gains in suburban battlegrounds.

From a policy perspective, the need for affordable housing remains as clear today as it was when the Supreme Court ordered state action on the issue in 1984. According to the U.S. Census, New Jerseyans pay 30 percent or more of their income for housing, the fourth highest percentage in the nation. However, members of both parties recognize that in its current form, COAH often results in continued overdevelopment and an increase in property taxes.

Democrats in the Legislature have indicated their willingness to take on the challenge. As chairman of the Economic Growth Committee, Sen. Ray Lesniak, D-Union, introduced legislation (S2485) that directs the state Housing Commission to consider the impact of its assessments on local property taxes.

Lesniak also wants COAH to provide housing not only to low-income individuals, but to those in the middle class who do not qualify for the program but nonetheless struggle with New Jersey's high cost of living. Called "work-force" housing, the change would allow individuals such as secretaries, firefighters and recent college graduates to qualify for assistance.

In his recent State of the State address, Corzine indicated his willingness to "allow for maximum flexibility and ample time for collaborative review" of affordable housing plans. The governor and Democrats will face the challenge of articulating the need for COAH regulations to a public leery of continued development.

Affordable housing may be an issue that Republicans can use to their advantage, but thus far they have offered no policy alternative other than S2292, a bill re-establishing the regional contribution agreements that circumvented the intent of affordable housing in the first place. Their advocacy of a return to the failed status quo does nothing to address the real problem.

New Jersey is a "blue" state and New Jersey Republicans are a party rife with ideological divisions. Criticism of COAH presents them with an issue they can rally around. However, they will need more than rhetoric and stale policy to convince voters they can solve the problem. Democrats have demonstrated a willingness to ease the burden on municipalities without abandoning a commitment to providing affordable housing. The remaining challenge for lawmakers is to deliver reform.