Taxes, Taxes Everywhere

New Jersey has to fix the transportation trust fund, which will run out by July 1 if nothing is done. Any fix of the trust fund will include an increase in the gasoline tax that funds the fund. Many people will find that an uncomfortable truth. The gasoline tax is the largest source of funding for the fund, but there are serious structural problems in the state that are to blame.

Meanwhile, over in NYC, Mayor Bloomberg has dusted off the old commuter tax as a way to balance the budget, which appears to be at least $1 billion in the red.

Here's a clue for New York and New Jersey. One of the reasons that both are in such bad fiscal shape is that neither sees a reason to stop spending. Lavishly. You can either raise taxes, which will force people out of the area altogether, or you can reduce spending, which will actually benefit more people by reducing the costs of doing business or living in the region. So far, NYC is looking to raise taxes on the commuters (like myself). The Post lays it out:

The fact is, Bloomberg spent tens of millions of dollars promoting himself for re-election, but never left a clue as to how he'd plug that $4.5 billion hole — other than to say he'll "do more with less."

Mike asked New Yorkers to trust him, in other words.

But let's face it: Mayor Mike has never understood the fundamental problem with the city's budget. It's quite simple, really:

The budget is too high!

The city spends too much — and taxes too much to pay for all the spending.

Cut the spending, and you'll cut the costs of the city budget.