Why Does Everyone Get That Spending Is The Problem
But Corzine And The Democrats?
- The Democrats Are Celebrating A $3 Billion Increase In State Spending And A $2 Billion Tax Hike.
- This Is The Biggest Budget In State History And New Jerseyans Will Be Paying More In Taxes Than Ever Before.
- This Time Next Year, We'll Be Right Back Where We Are Now Facing A Multi-Billion Dollar Budget Hole All Because Jon Corzine Failed To Get State Spending Under Control.
- Republicans In The Legislature Identified Savings Of $2.2 Billion Dollars - Which Should Have Been Used To Negate The Need For Any Tax Increases.
The Democrats Are Trying To Justify Their Tax Increase By Promising That Half Will Be Used For Property Tax Relief.
This Budget is no better than the lie that the millionaires tax would be used to lower property taxes. That turned out to be a big lie and so is the claim that this sales tax hike will be dedicated to tax relief.
Republicans Controlled Spending When They Were In Control
The last time we had an elected Republican govenor and Republican control of both houses, spending increased at an average annual rate of 5.1 percent. As important, during those years, revenue growth outpaced expenditure growth and the structural deficit was brought down from $1.58 billion to $306 million (or from an amount equal to 10% of the budget to an amount equal to 1.3 percent.
- Spending under Gov. Whitman increased at an annual rate of 5.1 percent.
- Spending under Corzine is increasing 10 percent in one year.
- Spending under Gov. McGreevey & Codey increased at an annual rate of 6.5 percent.
- Spending under Gov. Florio increased at an annual rate of 6.3 percent.
New Jersey's State/Local Tax Burden Above National Average
Estimated at 10.8% of income, New Jersey's state/local tax burden percentage ranks 17th highest nationally, above the national average of 10.6%. New Jersey tax payers pay $5,234 per-capita in state and local taxes.
New Jersey's State-Local Tax Burden, 1970-Present
New Jersey's 2006 Business Tax Climate Ranks 49th
New Jersey ranks 49th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales and gross receipts taxes; unemployment insurance taxes; and taxes on wealth, including residential and commercial property. Neighboring states ranked as follows: New York (50th), Pennsylvania (16th) and Delaware (8th).
50-State Comparison of Business Tax Climates
New Jersey's Individual Income Tax System
New Jersey's personal income tax system consists of six brackets and a top rate of 8.97% kicking in at an income level of $500,000. Among states levying personal income taxes, New Jersey's top rate ranks 6th highest nationally. New Jersey's 2004 individual income tax collections were $852 per person, which ranked 16th highest nationally.
50-State Table of Individual Income Tax Rates
New Jersey's Corporate Income Tax System
New Jersey's corporate tax structure consists of a flat 9% on corporate income. However, corporations with total net income of $100,000 or less pay 7.5%. Moreover, corporations with total net income of $50,000 or under pay 6.5%. Among states levying corporate income taxes, New Jersey's top tax rate ranks 8th highest nationally. In 2004, corporate tax collections reached $218 per capita, ranking the state 5th highest nationally.
50-State Table of Corporate Income Tax Rates
New Jersey Levies Sales Tax above National Median; Cigarette Tax, Nation's Second Highest
New Jersey levies a 6% general sales or use tax on consumers, which is above the national median of 5%. State and local governments combined collect approximately $721 per capita in general sales taxes, ranking 31st highest nationally. New Jersey's gasoline tax stands at 14.5 cents per gallon and ranks 4th lowest nationally. New Jersey's cigarette tax stands at $2.40 per pack of twenty and ranks 2nd highest nationally. The sales tax was adopted in 1966, the gasoline tax in 1927 and the cigarette tax in 1948.
50-State Table of Sales and Excise Tax Rates
New Jersey Property Taxes: Highest Per Capita in the NationNew Jersey is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. New Jersey's localities collected $18,225,594,000 in property taxes in fiscal year 2004, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, New Jersey collected $3,660,000 in property taxes during FY 2004, making its combined state/local property taxes $18,229,254,000. At $2,099, New Jersey's combined per capita collections were the highest in the nation.
State property tax collections per capita by state
Federal Tax Burdens and Expenditures: New Jersey is a Donor State
New Jersey taxpayers receive less federal funding per dollar of federal taxes paid than any other state. Per dollar of federal tax paid in 2004, New Jersey citizens received approximately $0.55 in the way of federal spending. This represents a decline from 1992 when New Jersey received $0.66 per dollar of taxes in federal spending (also ranked lowest). Neighboring states and the amount of federal spending they received per dollar of federal taxation paid were as follows: New York ($0.79), Pennsylvania ($1.06), and Delaware ($0.79).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state
NJ budget facts
Actually, this all the more reason to get out of NJ before I have kids and locked in here.
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