It seems as though the "powers to be" in Trenton have their heads sunk in the sand. There is never an easy solution in overcoming a budget deficit ($1 billion). Gov.-elect Jim McGreevey has inherited this tremendous deficit from the previous administration (Republican).
Former Gov. Christine Whitman and her administration passed a couple of tax cuts that have put New Jersey in a precarious state. These cuts are as follows (income tax and sales tax). These cuts amounted to several hundred millions of dollars.
The income tax (cut that was) passed benefited mainly upper-bracket income earners. How much revenue was lost to the state? It would be political suicide to increase this tax.
The only fair tax to increase is the sales tax. This type of tax affects each and every one equally. Several years ago our venerable Assemblyman Chuck Haytaian reduced the sales tax by 1 percent (from 7 percent to 6 percent). This resulted in an estimated loss of revenue of several hundreds of millions of dollars.
I am suggesting that the incoming administration strongly consider raising the sales tax to address the budget shortfall (include nontaxable items).
As all homeowners know, their property taxes have escalated tremendously (they have never decreased). The state is directly involved in this important matter. To combat a budget deficit, they shortchange the townships.
In order for the township to stay out of the red, who suffers? Surprise — the homeowners. Their property tax is raised accordingly. The burden is put directly on the homeowners to keep the township afloat.
Sidney Alpert
Covered Bridge IManalapan