New Jersey Tax Hike Plan Passes Legislature on Tuesday

With Governor McGreevey’s support, the New Jersey state Senate passed a plan on Tuesday that will raise taxes by almost $600 million. Last year, Governor McGreevey passed the Business Tax Reform Act of 2002, which cost taxpayers in the state $2.5 billion in 2003. The governor promised not to raise taxes in his 2002 campaign, and Citizens for a Sound Economy’s 7000 New Jersey members are disappointed that McGreevey broke his no-tax commitment yet again.

The tax plan will affect many different groups in the state. The hike will take $90 million from casinos, and $72 million from those who pay utility bills. Taxes on cigarettes, hotel rooms, and nursing home beds will also be raised. Indeed, the tax on nursing home beds will cost seniors and others who rely on nursing homes $37 million.

While some legislators were able to negotiate $200 million out of the tax hike, CSE members know that it will have a negative impact on New Jersey taxpayers and the Garden State economy.

CSE President Paul Beckner made the following statement:

“The New Jersey state government has already received $561 million in aid from the federal government. Instead of raising taxes to grow spending even more, the state should have taken another look at the budget and cut it down to size.”

“The New Jersey Legislature reports that the current budget problems were caused in part by a 14.4% decrease in income tax revenue. Yet this tax hike will take more money out of the hands of consumers and businesses, possibly reducing income tax revenue even more.”