The recession blew a $2.5 billion hole in the state budget that has never been filled. Now, the governor wants to dig that hole even deeper with an irresponsible gimmick that only benefits the wealthiest 1 percent.
Proposing an income tax cut might be good politics, but it’s bad policy for most New Jerseyans.
For most of us, the governor’s proposed income tax cut will amount to $2 a week, which will be quickly eaten up by rising property taxes. Meanwhile, the top 1 percent will reap nearly 40 percent of the savings.
The state’s tab for this tax cut will ultimately be $1.1 billion, and that money has to come from somewhere. While the governor seems to think it will come from his pie-in-the-sky revenue projections, it’s hard to imagine the state’s stagnant economy will turn around quite so quickly. At the end of the day, it will be New Jersey’s future generations footing the bill.
For more on the budget address, see the governor’s prepared remarks here.
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