Assembly GOP to Dems: No excuse for NJ's fiscal mess

As economists debate whether or not the U.S. economy is in a full-fledged recession, Assembly Republicans are certain of this – New Jersey’s abysmal economic state can’t be blamed on the nation’s economic woes, despite efforts by Governor Jon Corzine and his party to the contrary.

The results of two new studies released this week brought yet more economic bad news for Garden State businesses and taxpayers: New Jersey has the worst tax system out of the 50 states and it is among the 10 worst states in creating private sector jobs.

Assembly Republican lawmakers said it’s time the Democrats take responsibility for their failed economic policies and begin working with Republicans on the solution.

“New Jersey’s fiscal problems didn’t occur overnight as the governor and his party would like you to believe,” said Assemblyman Gary Chiusano. “The Democrats haven’t helped matters these past six years. They’ve taxed, borrowed and spent this state into economic ruin. Now they want to ignore their role in this by trying to exclusively blame our fiscal mess on the current national economic downturn. But the numbers don’t lie. We’ve seen these same results study after study, survey after survey, year after year.”

Assemblyman Richard Merkt agreed, saying that blaming the state’s fiscal woes on the national economy – as Democrat leaders have habitually done – is clearly nothing but a cop-out, given how poorly our state compares to others. He noted that the Corzine Administration has actually made matters worse for the private sector by imposing paid family leave, new regulations on business and an ever increasing state tax burden.

“The policies of this Administration have choked off economic growth and they are throttling our state’s job market,” Merkt said. “This isn’t about the national economy; this is about abysmal decisions by political leaders in this state, and the negative impact their lack of vision is having on New Jersey’s economy.”

The Small Business & Entrepreneurship Council (SBEC) released its 2008 “Business Tax Index” Wednesday which ranks states from best to worst in regards to costs of their tax systems on entrepreneurship and small business. New Jersey placed dead last. The score is based on 16 tax measures, such as the state's top personal income tax rate, state's top individual capital gains tax rate, state's top corporate income tax rate, state's top corporate capital gains tax rate, any added income tax on S-Corporations, whether or not the state imposes an alternative minimum tax on individuals, whether or not the state imposes an alternative minimum tax on corporations, and property taxes among other things.

“For years, Democrats have implemented an anti-business agenda that includes over 100 tax hikes, numerous fee increases and excessive regulation including increases in the corporate business tax aimed directly at the business community, increases to personal income taxes that affect small business owners, new telecommunication taxes and the elimination of a tax deduction for net operating expenses,” stated Chiusano, a member of the Assembly Commerce and Economic Development Committee.

“Each year we see, more and more, the failed crop of that agenda. The SBEC study is more evidence of this and yet Governor Corzine and the Democrats in the Legislature refuse to take action,” he continued. “In fact, they arguably made matters worse when they recently approved the Paid Family Leave Act which is yet another tax on businesses and employees.”

Chiusano said the SBEC study, in conjunction with data released Tuesday which ranked New Jersey among the 10 worst states in creating private sector jobs, will exacerbate the exodus of businesses and residents from New Jersey.
“Businesses can’t afford to do business here and residents can’t afford the state’s outrageous cost of living due to an excessive tax burden, massive debt and runaway spending,” said Chiusano. “To Governor Corzine and my counterparts I say, ‘Let’s face facts, stop making excuses, and work together to resolve these most pressing issues which threaten the economic solvency of this state.’ ”

On Tuesday, economists at the Rutgers University Edward J. Bloustein School of Planning and Public Policy released data showing that, even as neighboring states exceeded national job growth figures in 2007, New Jersey was among the 10 worst states in creating private sector jobs trailing far behind states like New York, Pennsylvania and Connecticut in creating private employment opportunities.

The report included a section titled “‘Flat-lining’ New Jersey” saying New Jersey trails its economic peer states in job growth by as much as 12 times our state’s rate of growth and may find itself in a particularly “precarious position” in 2008. In the first two months of 2008, New Jersey lost 10,400 private sector jobs.

Following the release of that data, Assembly Republican Leader Alex DeCroce said the Corzine Administration must act now to address the state’s struggling economy and its many families that are being hurt by the job market losses.
“For years, New Jersey families have been struggling to make ends meet because of our excessive tax burden,” said DeCroce. “Now, in addition to that crushing tax burden, our families face the prospect of losing jobs and not being able to pay their bills because of an ever-weakening job market.

 “Businesses look for positive signs and stability when deciding where to locate and expand,” he continued. “When they look at the tax and regulatory policies in this state, and the condition of our state budget, they have little reason right now to be optimistic about New Jersey.”

DeCroce added that Governor Corzine should recognize that New Jersey is facing an economic crisis and begin to undo “those policies that are choking off job growth in this state. Looking at these job figures, there is a serious concern as to whether people are going to be able to find work and support their families in New Jersey,” he stated.

Meanwhile, Assemblyman Scott Rudder and Assemblywoman Dawn Marie Addiego noted that the results of the two surveys come at the same time that recent legislative budget hearings and state audits have uncovered millions of dollars in wasteful or inappropriate government spending.

The two 8th Legislative District legislators said there is no excuse for state government to continue wasting taxpayer dollars while imposing taxes, fees and regulations on New Jersey businesses that have resulted in devastating job losses for New Jersey.

They said cutting waste and focusing on job creation are two key ingredients to turning around New Jersey’s economy.

“There is a direct tie between government efficiency and the ability of a state to attract businesses and generate economic growth,” said Rudder. “When businesses look at a state that is awash in corruption, burdened with excessive taxes and regulation and on the brink of a fiscal disaster, they are going to be reluctant to locate or expand operations in that state.”

Rudder and Addiego said that  businesses are reluctant to incur the expenses associated with operating in a high tax state like New Jersey where navigating regulations imposed by often times inefficient state departments is even more costly.

“The most recent job growth numbers show that our state has lost its competitive edge and that our taxpayers are losing employment opportunities,” said Addiego. “Waste and abuse of taxpayer dollars drives up the cost of government, and in recent years that cost has been passed onto taxpayers and businesses in our state. We must address the first problem if we are to successfully address the second.”

Saying the economic numbers are impossible to ignore, Merkt wondered how long Governor Corzine will dally before taking steps to rescue New Jersey’s struggling private sector and failing economy.

Dems chop away at last year’s property tax relief program

Remember last year’s property tax relief legislation that Governor Jon Corzine and the ruling Democrats promised was permanent and sustainable? Turns out it isn’t. The program, its seems, is on the budget chopping block much to the dismay of Assembly Republicans who had cautioned last year that the move was nothing but another election-year scheme.

Responding to recent news reports that some Democrats are urging Governor Corzine to consider further cuts to the state’s property tax rebates, Assemblyman David Rible said Thursday it is becoming increasingly clear that last year’s property tax relief “program” is disappearing piece by piece.

“When this new property tax relief program was implemented last year, New Jersey homeowners were assured the program would be sustainable because it would be a top priority in future budgets,” said Rible, R-Monmouth. “Just one year later the program is being dramatically scaled back, and with suggestions to cut the program further, it is looking increasingly like these tax rebates were just an election-year gimmick.”

In his Fiscal Year 2009 budget Governor Corzine had proposed eliminating property tax rebates for families with household incomes of $150,000 or more and reducing the size of rebate checks for those earning over $100,000. It was later announced that the administration is also planning to base the rebates on 2006 property tax bills instead of the 2007 bills – a move that means rebates will not be adjusted to reflect last year’s property tax increases.

This week, Senate President Richard Codey, D-Essex, and several other Democrat legislators have suggested that if Governor Corzine wants to restore spending cuts he has made to the budget, he should consider eliminating the rebate checks for all families with household incomes exceeding $100,000.

“There are plenty of areas of wasteful and unnecessary spending in this budget that could be eliminated before we even talk about cutting property tax rebates,” Rible said. “An increasing number of New Jersey families are finding they cannot afford to live in this state and Governor Corzine needs to keep his commitment to these families by not eliminating this much needed tax relief.”

When the property tax rebate program was approved in 2007, Republican lawmakers warned that it might just be an election-year gimmick that would disappear in future budgets. As an alternative they suggested a constitutionally dedicated property tax relief program delivered through direct credits to property tax bills rather than rebate checks.

While Rible said that rebate checks may not be the best mechanism for delivering relief, he warned that if Democrats continue chipping away at the program, there soon will be few homeowners left who qualify – and then taxpayers will be left to pay New Jersey’s highest in the nation property taxes with no assistance of any kind.

If you do not wish to receive this free newsletter, click here

<--BACK   HOME