Category: Statement

NJ Transit Needs Dedicated Funding, Not Service Cuts and Fare Hikes

Posted on by Alex Ambrose

Tonight, the NJ Transit Board of Directors will vote to adopt the agency’s budget for Fiscal Year 2024. With no source of dedicated funding in the state budget approved last month, the proposed NJ Transit budget continues to raid the Clean Energy Fund and divert capital funds to cover operating expenses. As the agency predicts a nearly $1 billion budget deficit in the coming years, the Murphy administration has signaled that they will prioritize service cuts and fare hikes before they consider additional state funding. In anticipation of tonight’s vote to adopt the budget, and with no movement from state lawmakers to fully fund NJ Transit, New Jersey Policy Perspective (NJPP) releases the following statement.

Alex Ambrose, Policy Analyst, NJPP:

“State lawmakers are failing NJ Transit and the millions of residents who rely on the agency’s buses and trains. Without additional funding from the state, riders are looking at steep fare hikes and service cuts that will have them paying more for less frequent and less reliable service.

“While a post-pandemic budget shortfall is not unique to NJ Transit, it remains the only agency of its size in the country without dedicated funding. It’s not like the money isn’t there. Lawmakers are poised to give the biggest and most profitable corporations a $1 billion tax cut at the end of this year, even though these funds can and should be used to fund NJ Transit. Across the river, New York avoided drastic service cuts by increasing taxes on corporations that benefit from public transit, and there’s no reason New Jersey can’t do the same.”

 

New Jersey Budget Deal Gives to the Rich, Mortgages New Jersey’s Future

Posted on by Nicole Rodriguez

Today, the New Jersey Legislature released its budget proposal for Fiscal Year (FY) 2024. The $54.3 billion budget was made available to legislators after 11:00 PM and was quickly advanced out of the Senate and Assembly Budget Committees without publicly available bill text or an opportunity for anyone to testify. In response to the budget deal, New Jersey Policy Perspective (NJPP) releases the following statement.

Nicole Rodriguez, President, NJPP:

“This budget should have been an opportunity to make generational investments in schools, transit, affordable housing, and so much more, but lawmakers prioritized big tax cuts for the wealthy and well-connected instead. With so many families struggling to keep up with rising costs, this budget gifts a $1 billion tax cut to multinational corporations, creates new tax loopholes, and hands hundreds of millions of dollars to Hollywood studios and big developers. The promise of “affordability” for working families has taken a backseat to the interests of the wealthy and powerful.”

“Make no mistake, there’s a lot to celebrate in this budget, but it will be incredibly difficult to maintain adequate funding for the pension, public schools, the Child Tax Credit, and countless other public goods with less tax revenue. We’re already seeing tax collections coming in lower than expected, and with federal pandemic aid about to expire, New Jersey will soon face a fiscal cliff that we aren’t prepared for.”

Film Tax Credit Expansion is a Bad Investment for New Jersey

Posted on by Peter Chen

On Tuesday, the Senate Budget and Appropriations Committee advanced an overhaul of New Jersey’s film and television corporate subsidy program (S3748), increasing the annual maximum tax credits by at least $200 million and watering down the existing program’s accountability provisions. The bill was voted out of committee despite the lack of fiscal note or any indication of the overall cost of the program. In response to the bill advancing through committee and the bill text finally available to the public, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“Handing union-busting Hollywood studios hundreds of millions of dollars in subsidies is a bad investment for New Jersey. Study after study shows that the cost of film tax credits overwhelmingly exceeds the benefits, as the jobs created are temporary and often go to specialists from out-of-state. At a time when New Jersey is facing upcoming budget shortfalls, cutting a check to movie and television companies will enrich high paid executives and corporate shareholders at everyone else’s expense. And by watering down accountability measures, lawmakers risk turning a bad investment into an even worse one if the proposed jobs and spending never materialize.

“New Jersey’s budget should prioritize public investments that we all rely on and benefit from, rather than lining the pockets of big businesses.”

Corporate Tax Overhaul Makes it Easier to Hide Profits in Foreign Tax Havens

Posted on by Peter Chen

Later today, the Senate Budget and Appropriations Committee will vote on S3737, a bill that would overhaul New Jersey’s corporate tax code and make it easier for multinational corporations to hide their profits in foreign tax havens. The bill’s amendments weaken it further, removing much-needed discretion by tax authorities to force corporations to disclose their tax-haven subsidiaries and include their profits in their tax filings. In anticipation of the bill advancing through committee, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“At a time of record-breaking corporate profits, this bill would make it much easier for big, multinational corporations to hide their profits abroad or in complex tax avoidance schemes. The proposal was bad enough when it was first introduced, but new amendments will water down the corporate tax code even further and cost the state even more revenue.

“As many corporate lobbyists have publicly stated, this overhaul of the tax code was drafted with extensive input from corporations and their tax law firms and accountants. But one group was missing from these discussions: the people of New Jersey whose schools, transit infrastructure, and public services will lose out if corporations avoid paying their fair share in taxes. This bill, combined with the planned $1 billion corporate tax cut, would further tilt the tax code to favor special interests at the expense of New Jersey residents and the public programs and investments we all rely on.”

Read NJPP’s analysis of the bill here.

Read a national tax expert’s opposition to the bill here.

# # #

Senior Tax Credit Proposal Falls Short of Helping Seniors With the Lowest Incomes

Posted on by Peter Chen

On Friday, new details of Assembly Speaker Craig Coughlin’s senior tax credit program were released to the public. The proposal would create a new program, StayNJ, that would provide a tax credit worth 50 percent of a senior’s property tax bill, with credits capped at $10,000. Because the proposal would provide maximum benefits to those with property tax bills of $20,000 and up, and does not include an income limit on eligibility, the program would disproportionately benefit the wealthiest seniors in the state who own the highest-valued homes. In response to the newly released bill text, New Jersey Policy Perspective (NJPP) released the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“Lawmakers should be doing everything they can to help seniors keep up with rising costs, but this proposal would fall short by directing the biggest tax cuts to the wealthiest households while many low-income seniors would get nothing. With no income cap on eligibility, higher tax credits for more expensive homes, and no assistance for renters, it’s clear who this program would benefit and who it would leave behind. The program also comes at an enormous cost to the state, just as revenue collections are coming in lower than expected, putting funding for existing public programs and services that seniors rely on at risk.

“Making New Jersey more affordable for seniors is a noble goal, but we’re not going to get there by giving the likes of Bruce Springsteen and Phil Murphy a $10,000 check. There are more effective and efficient ways to target relief to the seniors who are struggling the most with high housing costs, grocery bills, and prescription drug prices.”

The StayNJ proposal would benefit wealthy homeowners the most, leave renters behind, and widen the racial wealth gap:

  • Homeowners with property tax bills in excess of $20,000 would receive the maximum StayNJ credit while lower-income residents would receive less due to their smaller homes and lower property tax bills.
  • Only thirteen municipalities in New Jersey — including Alpine, Millburn, Rumson, and Princeton — have an average property tax bill that would qualify for the full StayNJ credit. These towns have average property values of over $1 million and are home to celebrities, professional athletes, and business and finance executives.
  • One in four seniors aged 65 and over — roughly 230,000 New Jersey residents — rent their homes and would be left out of the proposal, including more than half of Black and Hispanic/Latinx seniors in the state.
  • Homeowners over age 65 in New Jersey are disproportionately white. More than 80 percent of white seniors are homeowners, compared to 41 percent of Hispanic/Latinx seniors and 49 percent of Black seniors.
# # #

The Biggest Threat to Whales is the Climate Crisis, Not Offshore Wind

Posted on by Alex Ambrose

Today, the Assembly Science, Innovation, and Technology Committee held a hearing on marine mammal deaths along the Atlantic Coast. The hearing follows months of fossil-fuel-funded groups, conservative politicians and media personalities, and celebrities like Snooki claiming, without evidence, that recent whale and marine mammal deaths are a result of offshore wind. In response to the hearing, New Jersey Policy Perspective (NJPP) released the following statement.

Alex Ambrose, Policy Analyst, NJPP:

“There is no evidence that anything related to offshore wind is harming whales or other marine mammals. There is, however, extensive evidence that the climate crisis will continue to harm not only whales but every resident of New Jersey, particularly those living near the shore and in communities hit hardest by fossil fuel pollution. New Jersey needs to continue the responsible development of clean energy to add good union jobs in the state and improve the health of our wildlife and our people.”

# # #

Rutgers Faculty Deserve to be Respected and Fairly Compensated

Posted on by Nicole Rodriguez

Earlier today, more than 9,000 Rutgers University faculty and graduate student workers went on strike across the university’s three campuses. Rutgers faculty have been without a contract for 284 days. In response to the strike, New Jersey Policy Perspective (NJPP) released the following statement.

Nicole Rodriguez, President, NJPP:

“We stand in solidarity with the Rutgers grads and faculty on strike across the state. These workers are the backbone of the university and have dedicated their lives to educating and inspiring the next generation of leaders. They deserve to be recognized, respected, and fairly compensated for their contributions to the university and the state. In New Jersey, there is no place for a higher education model that underpays faculty, reduces tenured positions, and does not guarantee job security.”

###

Police Killing of Najee Seabrooks is the Result of a Systemic Policy Failure

Posted on by Nicole Rodriguez

Earlier today, the New Jersey Office of the Attorney General released body camera footage from the police killing of Najee Seabrooks, a violence intervention specialist with the Paterson Healing Collective, who called 9-1-1 while experiencing a mental health crisis. The video footage depicts multiple officers responding to the mental health crisis with guns drawn and pointed toward Najee. Minutes after officers stated, “Nobody is going to shoot you,” officers opened fire. In response to the release of the footage, New Jersey Policy Perspective (NJPP) releases the following statement. 

Nicole Rodriguez, President, NJPP:

“Najee Seabrooks should be alive right now. This is not only tragic but the result of a systemic policy failure that had heavily armed police respond to a mental health crisis. What outcome should we expect when someone in crisis is met with police armed for war with their guns drawn? Our system failed Najee, just as it continues to fail our Black and brown neighbors who put their lives in jeopardy when they call 9-1-1 for help. State and local lawmakers must act with urgency so mental health crises are met with trained professionals, not armed police, and that people are connected to the care they need.”

For more information on, and examples of, alternatives to policing, read NJPP’s 2021 report, To Protect and Serve: Investing in Public Safety Beyond Policing.
# # #

Governor’s Budget Proposal Rests on Shaky Foundation With Corporate Tax Cuts

Posted on by Nicole Rodriguez

Earlier today, Governor Murphy unveiled his FY 2024 state budget, proposing new investments in pre-K-12 education, property tax relief, tax credits for working families, and more. The budget also proposes eliminating the Corporate Business Tax surcharge, which would cost the state $1 billion per year. In response to the budget address, New Jersey Policy Perspective (NJPP) released the following statement.

Nicole Rodriguez, President, NJPP:

“The governor’s budget proposal wisely invests in the building blocks of a strong economy, from public schools to public health, but these investments rest on a shaky foundation. By giving a massive tax cut to the most profitable corporations in the world, there’s no promise that the state will be able to fund these public needs in the future.

“The long-term success of New Jersey requires reliable and sustainable sources of revenue to keep state government running and to fund the vital public services and infrastructure we all rely on. By eliminating the Corporate Business Tax surcharge, lawmakers will blow an even bigger hole in the state budget than previously thought. Buried in the governor’s budget proposal is a new estimate for how much this corporate tax cut will cost the state, coming in at a whopping $1 billion next year.

“We should know by now that trickle-down tax cuts do not work. We learned this lesson the hard way during the Christie administration, where big tax cuts for the wealthy and well-connected led to the hollowing out of public services and exacerbated income and wealth inequality.

“State leaders can’t have it both ways. A promise to deliver the supports and services our communities need requires a smart tax code that not only responds to current economic conditions but works in our collective favor. The “next New Jersey” doesn’t have a chance without tackling our rigged tax code head-on. That’s the hard work we expect from elected officials, and it only pays off if they prioritize the needs of the many over those of a chosen few.”

###

Letting the Corporate Business Tax Surcharge Expire Will Give a Huge Tax Cut to the Most Profitable Businesses

Posted on by Nicole Rodriguez

In an interview with Bloomberg TV earlier today, Governor Murphy said that he plans to let the Corporate Business Tax (CBT) Surcharge expire at the end of the calendar year, giving the biggest and most profitable corporations a $600 million tax cut. The CBT surcharge is only paid by the top 2 percent of the wealthiest corporations operating in the state, including out-of-state corporations like Amazon and Walmart. This announcement comes one day after the governor’s State of the State address where he slammed states that hand massive tax cuts to wealthy individuals and mega-corporations. In response to the announcement, New Jersey Policy Perspective (NJPP) released the following statement.

Nicole Rodriguez, President, NJPP:

“This is a tax cut for some of the biggest businesses in the world, plain and simple. With corporate profits at record levels and millions of New Jersey families struggling to keep up with rising costs, this represents the absolute worst of trickle-down economics. To be clear, this would not benefit mom-and-pop businesses but corporations like Amazon and Walmart that make billions of dollars every year off the backs of low-paid workers.

“A day after the governor centered his State of the State address on creating opportunity for everyone, this tax cut will blow a hole in the state budget and make it even harder to fund the very programs and services that would do just that. New Jersey’s long-term economic and fiscal health will be in jeopardy if lawmakers allow more than half a billion dollars to go back into shareholders’ pockets rather than addressing the urgent needs of our communities.”

# # #

«« Previous Posts∞Older Posts »»