Thursday, July 06, 2006

New Jersey is up and running!

Nation: All you residents have fun paying the higher taxes.

While the agreement was widely viewed here as a political victory for Mr. Corzine over the Assembly speaker, Joseph J. Roberts Jr., who had steadfastly opposed the sales tax increase, it came at a cost.In the end, he had to agree that half of the $1.1 billion in revenue expected from the tax increase could end up going toward easing the state's nagging property-tax burden. The agreement reached between Mr. Corzine and Mr. Roberts after almost a week of difficult negotiations calls for raising the sales tax to 7 percent from 6 percent, a step that the governor had called for in his budget to help close a $4.5 billion budget gap and refused to yield on. A person or family spending $200 a week on taxable goods and services would pay about $100 more a year in sales tax after the increase. In a significant concession to a bloc of Assembly Democrats led by Mr. Roberts, he agreed to address the property tax issue. Plans for how the property tax relief would be granted were being completed Thursday night. One plan would allow voters to decide in a referendum in November whether to dedicate half of the $1.1 billion in new sales tax revenue to easing the state's property taxes — which are among the highest in the nation. If voters approve at a referendum in November, the state Constitution will be amended to dedicate the money to aid cities and towns for a year. That provision, which was developed in the 24 hours leading up to the agreement, was the turning point in the talks, Mr. Roberts said. The agreement might require another referendum next year in which voters will decide whether to dedicate the entire one percent increase to help ease property taxes for the next 10 years. Some critics of the agreement questioned whether the plan would provide the kind of sustainable long-term solution for the state's budget woes that Mr. Corzine envisioned.
Not only does this sale tax increase not cover deficit, it only covers half with a chance that all of it could go towards helping out with property taxes which means taxpayers are giving themselves a rebate. The best part is that this was a fight over paying more taxes and which ones should be raised. Not once did anyone suggest meaningful tax cuts(Not slowing the growth) or spending cuts in property taxes/programs to help cut the budget down. Hey, they knew Corzine was a far left tax and spend liberal when he was elected. Now reap the benefits of higher taxes.

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