- It’s Nonsensical
Swapping a long-overdue tax increase that will be used for a dedicated investment with a wide-ranging package of tax cuts that will drain money from other state funds makes zero sense, as Vice President Joe Biden’s former chief economist explains.
- It’s Regressive
The entire package would bestow the greatest economic benefits on well-off New Jersey families – particularly on the heirs to the state’s largest estates. Families earning between $25,000 and $79,000 a year – the working- and middle-class – would be the biggest losers with the gas tax increase – even with the tax cuts included – according to the Institute for Taxation and Economic Policy, a national research organization.
- It’s Reckless
The package would cost New Jersey significantly more than $10 billion over the next 10 years. At a time when the state already cannot meet its past, current and future obligations; invest in the assets that grow a strong state economy; or provide an adequate safety net for its neediest residents, blowing a hole of this magnitude in the state’s budget is financially irresponsible.
- It’s Not the Best Transportation Funding Fix & Could Harm Public Transit
On the Transportation Trust Fund side of the equation, the deal merely “continue[s] the trend of stagnant funding for another eight years,” according to analysts at the Tri-State Transportation Campaign. At the same time, the package “could spell disaster for NJ Transit’s operating budget,” Tri-State warns, since NJ Transit operations are paid for through the budget. (The NJ Transit operating-budget issue is also of concern to NJ Future.)
- It Does Zilch to Address Property Taxes
Yes, the package to be voted on Friday includes many tax cuts. But it includes nothing that will tame – much less reduce – the one tax that all New Jersey families care greatly about: the property tax. In fact, with its income tax cuts and breaks, this deal actually makes property tax relief for seniors, working families and others more difficult, as it will shrink the amount of dollars in the Property Tax Relief Fund by about $300 million a year.
