The legislative leaders did not specifically detail how they would achieve a 20 percent cut, but said the plan included:They're going to create a tax credit of 20% of the tax owed. That sounds great until you realize that there's no real solution here, and all that Trenton has done is use the now authorized sales tax revenues to pay for property tax relief. The state unions are not going to be receptive to pension or benefits reorganizations - especially when they look across the Hudson and see that New York City just agreed to a 7.1% pay increase for the teachers' union without any performance adjustments. Legislators are doing nothing to curtail the size of the state government, which continues to grow despite the state's stagnant population size.
¶Having the state directly pay 20 percent of a household’s property taxes.
¶Establishing a new school aid formula that will provide financing based on need and include increased accountability for school spending.
¶Reforming public employee pensions and health benefits.
¶Helping municipalities and schools find ways to consolidate, regionalize and share services.
Any attempt to deal with education funding will run afoul of the Abbott rulings, and unless the courts sign off on any such plan, would probably be a nonstarter.
So, what are you left with? Taxes to pay for other taxes.
How about cutting both taxes and leaving more money in the hands of the taxpayer? Did that even occur to anyone? Probably not, because Trenton's more accustomed to wealth transfer than they are to wealth preservation - and that's not just for the rich. It's for everyone from the lower class all the way up to the super rich.
There's a reason that New Jersey's business climate is so poor. High taxes. Business taxes, property taxes, sales taxes, and the personal income (gross income) tax. Taken together, they put the squeeze on people who want to do business or live in the state.
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