Thursday, January 04, 2007

New Jersey Tax Rate Caps proposed

New jersey is trying to catch up with Davidson County. In Davidson County we passed a charter amendment that requires a voter referendum to increase tax rates. Now New jersey Governor John Corzine is proposing something similar for local governments.

This sounds good but my best guess is that it is just another cruel hoax perpetrated on New Jersey taxpayers. New Jersey has long ago passed a tipping point where taxtakers are much more politically powerful than taxpayers.


North Jersey homeowners will still get a promised property tax credit this year, but there is a new hitch: Lawmakers must also approve a plan that would force towns to limit their local spending.

Governor Corzine and leaders of the Democratic-controlled Legislature announced the arrangement Wednesday as part of package of measures they say will get the now-stalled property tax reform effort moving.

Wednesday's agreement essentially ties the fate of the promised credit to a plan that caps local tax rates. Many politically powerful groups -- including the public school teachers union, local officials and municipal workers -- have opposed such caps because they essentially limit spending.