Friday, December 22, 2006

Losing Ground

New Jersey's population keeps falling behind those of other states. That means another potential seat in Congress lost come the next census redistribution. It has now fallen out of the top 10 most populous states in the nation, falling behind North Carolina. Excuses are being made by the usual suspects, but what gets avoided is that the business climate and tax burdens in New Jersey make it far more expensive to live in that elsewhere in the country.

That has repercussions for those who call New Jersey home. State spending continues to increase. The number of state workers continues to increase out of proportion to the number of residents in the state. That means that the tax burden will continue to increase for those living here, and many will choose to go elsewhere. That continues a vicious cycle where those remaining have to pay higher taxes to cover services and spending that are all out of whack in Trenton.

New Jersey must get out of this cycle, and the only way to do so is to curb the state spending that has grown well in excess of the rate of inflation - and which has not actually improved services or education in the state. Trenton punted when it came time to deal with property tax reform, despite the fact that property taxes are excessive in the state. The personal income tax was instituted to provide property tax reform, and hasn't done the job. So, Trenton raised the sales tax to kick in additional property tax relief. The net result? Property taxes continue to rise.

Trenton refuses to do the one thing that is sure to limit the tax increases because it would affect the sacred cows of the state workforce - pensions and jobs for state workers.

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