NJ #1 Tax Increasing State in the Nation, Again
 

Americans for Tax Reform reports:

$1.4 Billion in New Tax Increases Will Bring the Cumulative Total to $17 Billion Since FY 2002

WASHINGTON – As the deadline approaches for the New Jersey legislature to finalize their work on the fiscal year 2007 budget, Americans for Tax Reform (ATR) today released the state by state breakdown of proposed FY 2007 tax increases and cuts. The Garden State continues to be the top tax raising state in the nation and if the Corzine or the Assembly Democratic proposal of $1.4 billion in tax increases is approved, New Jersey will only further cement its position as the #1 tax raising state in the country.

According to data from the National Association of State Budget Officers (NASBO) and analyzed by Americans for Tax Reform, from fiscal year 2002-2006, New Jersey raised taxes a cumulative $11.8 billion, which is $1,358 per person. For a family of four this would represent an additional $5,432 in additional taxes paid to New Jersey’s state government.

However, the Corzine Administration is seeking to raise another $1.4 billion in taxes. This is the largest tax increase among all 50 states for fiscal year 2007 and some states are significantly cutting taxes. If the proposed tax increases go through, the cumulative total for tax increases will reach $17 billion, $1,951 per person and $7,804 for a family of four since fiscal year 2002. Excluding New Jersey from the national totals, the average cumulative tax increases for the country in the same time period was just $290 per person and $1,160 for a family of four. As such, New Jersey has raised taxed nearly seven times the national average since fiscal year 2002.

Among the key findings of this year’s state tax actions:

1. No other state in the country has raised taxes more than New Jersey over the past six years.

2. If $1.4 billion of tax increases are passed, the cumulative tax increases will total $17 billion over this time.

3. Every man, woman, and child will have paid an additional $1,951 in taxes.

4. If $1.4 billion of tax increases are enacted, 17 percent of all state taxes nationally will have occurred in New Jersey, while New Jersey represents just 3 percent of the population.

5. New Jersey has raised taxes 573 percent more than national average of $290 per person during this same time period.

6. The second highest tax increase state in the country, Nevada, has levied “just” $1,110 of additional tax payments on their citizens.

7. Therefore, New Jersey has raised taxes an astonishing 76 percent more than the second highest tax raising state.

8. The closest neighboring states to New Jersey, Connecticut and New York, “only” raised taxes half as much on their citizens by $1,094 and $954 respectively over the same time period.

9. Pennsylvania, despite its much larger size than New Jersey, raised taxes by a cumulative total of $541.9 million over the past three years, pennies compared to New Jersey. Every man, woman, and child paid $43.60 more in taxes.

We would note that if the proposed spending plan is enacted state spending will have increased 45 percent since fiscal year 2002. For all the poverty crying in Trenton, spending continues to increase at a much faster rate than New Jersey working families’ incomes.

To date, no one has asked the right questions:

1.      If Jim McGreevey came to office with a $5 billion budget deficit and the state raised taxes more than any other state in the country, increased debt by $14 billion, and still has the highest property taxes in the nation, why then does Jon Corzine have the same $5 billion budget deficit today?

2.      And why are states which raised taxes by much less amounts during the economic downturn actually cutting their income and sales taxes while New Jersey is raising them?