New Jersey's Flat Tax Debate (Lonegan for, Christie against)

Wall Street Journal ^ | May 26, 2009

[reaganaut1]

If ever a state were ripe for bold economic reform, it would be New Jersey, which is shedding jobs and is in perennial budget crisis despite one of the highest tax burdens in the land. So why is Chris Christie, the GOP front-runner in the state's 2009 gubernatorial race, taking cheap shots at the flat tax?

Mr. Christie is a former U.S. attorney who did yeoman work putting away the state's many political thieves. But he seems to be running scared in next month's Republican primary, when he faces former Mayor of Bogota Steve Lonegan, who is proposing to scrap Jersey's job-killing graduated income tax that has rates running from 1.4% to 8.97%. Mr. Lonegan wants to replace it with a 2.98% flat tax on the first dollar of income earned.

That's a good idea that would give the Garden State the lowest tax rate in the Northeast after New Hampshire. Mr. Lonegan says this will ensure that when New Jersey incomes "move-up," the residents "don't move out." Over the past decade, New Jersey has suffered the fourth highest rate of out-migration of all the states, with nearly half a million residents fleeing to the likes of Delaware, Florida and even New York.

Mr. Christie is assailing Mr. Lonegan's proposal on TV, radio and the Internet as a tax hike on the poor. His TV ad claims the flat tax isn't fair because it would raise taxes on "almost 70% of working families." That sounds like he's reading from President Obama's teleprompter. Mr. Lonegan counters that only 40% would pay more -- by an average of less than $300 for a family earning $20,000 -- and their tax liability would still be lower than in New York and Pennsylvania.

[reaganaut1]

It's good to have a flat tax and have even lower-income people pay some tax, because otherwise government services are seen as free goods, and there is no broad-based opposition to higher taxes. The problem is that we already have a system where many voters are net tax recipients.

[YoungHickey]

“because otherwise government services are seen as free goods”

I think this is a really good point. If everyone shares the tax burden, people will stop using government services except when absolutely necessary.

[Melchior]

Christie sounds like a lawyer-politician peddling the Whitman liberal tripe. Dump him and give the people of New Jersey a real alternative to the tax and spend crowd.

[Williams]

Actually if ever a state were in need of bold economic reform, it would be California, followed by New Jersey.

[gridlock]

The majority of voters in this country are net tax recipients. We have passed the tipping point, and are in the regime where the looters are going to vote themselves and every larger amount of government money, until the system finally collapses.

Mayor Lonagan can try to stem that tide, and I will help him. I don't hold out much hope for success.

To quote the great Winston Churchill...

“If you will not fight for right when you can easily win without blood shed; if you will not fight when your victory is sure and not too costly; you may come to the moment when you will have to fight with all the odds against you and only a precarious chance of survival. There may even be a worse case. You may have to fight when there is no hope of victory, because it is better to perish than to live as slaves.”

[pnh102]

In an ideal world, anyone who receives any sort of welfare would not be allowed to vote.

[ExTxMarine]

“It’s good to have a flat tax and have even lower-income people pay some tax, because otherwise government services are seen as free goods, and there is no broad-based opposition to higher taxes. The problem is that we already have a system where many voters are net tax recipients.”

Thank you, Captain Obvious! /sarc

This is one of the biggest, broadest problems we face - people expect MORE but want to pay LESS! And as long as we have Democrats promising MORE by making someone else pay - they are going to win over the easily led, the lazy and the un-impassioned! Unfortunately, I think we have a majority of these types in Amerika now!

[hunter112]

If everyone shares the tax burden, people will stop using government services except when absolutely necessary.

Sorry, but you're thinking like a conservative here. Use auto insurance policies as an example, instead. Folks like you and I really hope we have nothing to do with our auto insurance companies besides watching them cash our premium checks, and issuing us the pieces of paper we may need to show to the authorities.

Liberals tend to feel that they are entitled to get some sort of "return" for the auto policy, even if it's to phony up a claim for a kickback from their brother-in-law, the auto body shop guy, or at least a free tow or two a year for a beater car that really needs to be replaced. That's what would happen in the minds of the libs when they start getting taxed. We should have never let up on them in the first place.

[VermiciousKnid]

Gridlock,

I am not a New Jerseyite, but have heard Steve Lonagan on WABC radio many, many times.

Can I ask you something totally and completely irrelevant? Doesn’t Lonagan sound EXACTLY like David Lerner from the “Take a tip from Poppy” financial services commercials on WABC?

Regards,

[gridlock]

Lonagan has a lousy voice, for sure. But he is right on the issues, so hopefully he can overcome that.

[VermiciousKnid]

Yes, Lonagan seems to be OK. As I said, I’m not from NJ (I’m from NY), but I certainly do wish him well in his race.

Regards,

[Renkluaf]

Agreed!

[VermiciousKnid]

I knew I wasn’t crazy, Ren...every time I hear his commercials I expect to hear, “Take a tip from Poppy!” at the end. LOL

Regards,

[Renkluaf]

Twins separated at birth!

[YoungHickey]

Sorry, but I don’t know any other way to think. I’m also relatively optimistic... perhaps to a fault.

[Man50D]

A tax on income is one of the planks in the Communist Manifesto. We've already seem over the last 96 years the result of a flat tax on income with the federal income tax code. It began with a 1% tax on the first $20,000 of income and 7% over $500,000 when the 16th Amendment was passed in 1913. It was essentially a flat tax on income since 99% of the population did not earn more than $500,000. It morphed into the multi tiered taxed system we have today. The same will happen with a state flat income tax.

A more effective tax code would be a consumption tax bill similar to the Fair Tax bill on the federal level. Fair Tax movement on the sate level has already started. The house chambers in Missouri and South Carolina have approved Fair Tax legislation.

[jmaroneps37]

Lonegan talks a good game about being against illegal immigrants, but that’s only for you and me. He was caught knowingly hiring two illegals as per the AP.

[phillyfanatic]

This is NJ. Don’t you understand that no matter what the issue, the media , the GOP will destroy themselves as the Dems cheat ala Senator Frank’s last two campaigns. The polls always show that the Pubs have a chance then the lemmings in NJ always put in a liberal Dem. So issues, except taxes, do not matter. The flat tax is just too complicated to be debated in a state where cheating is well known to elect Dems.

[xaxx]

That’s bunk and right out of the Christie playbook of lies, big lies and whoppers. And, of course, the Big Lie about the 70% which includes about 25% who expect benefits from filing and have NO taxes to pay.

Since the story was about flat vs “progressive” or “graduated” tax, I don’t know why you’d toss that in anyway.

What’s far more germane in my view is that Christie has had only one stint in elective office, during which he raised taxes, for which he was tossed out by the voters. Why should we wait for that sorry pol to mislead the whole state and have to wait 6 years to pull him out?

BTW, I teach a course at BCC. Today I asked my class if they knew what a progressive or flat tax was. None knew. Some people hear “flat” and they think “head”.

[Extremely Extreme Extremist]

My fear is that Dems and independents are going to cross-over and vote for Christie, knowing he’ll lose in the general. What’s infuriating to me is how these RINOs will ruthlessly attack their conservative opponents in the primary but will bend over for the Democrat candidate. If Christie wins the primary, I don’t expect him to put up much of a fight which will result in a easy Corslime victory.