Can they make it permanent?
Hey youse guys in da Mafia. You are on your own for now. Capiche?
"...At a time when New Jersey's business climate is already one of the worst in the U.S., population growth in the state is starting to stagnate, and some state revenue sources have unexpectedly declined during a period of robust economic expansion, New Jersey taxpayers can ill-afford a sixth consecutive year of tax and fee increases.
In Governor Corzine's opening budget address he charged, "If you don't like what I've proposed, then give me an alternative that is as far-reaching and as fair."[34] Policy prescriptions for limited government and restrained spending have been employed for decades, but Mr. Corzine might want to follow the example of Colorado, a state that limits budget increases to population growth plus inflation.
Population growth in New Jersey has not exceeded 0.8 percent since 1995 and inflation has remained relatively tame. If yearly spending would have increased only at the rate of these two indicators since FY 1995, state expenditures would be approximately $42 billion, or about $8 billion less than current projections.[35] This difference amounts to a savings of over $900 per capita, which could have been (preferably) either refunded to taxpayers or used to address the state's structural deficit and unfunded liabilities. Other policy initiatives that could lighten future taxpayer burdens include modernizing the state government's retirement system by switching from a defined-benefit plan that is burdened by demographic constraints, to a defined-contribution arrangement. Finally, New Jersey could adopt some of the Medicaid reforms taking place in South Carolina and Tennessee, where the government might offer Health Savings Accounts and increased portability rather than the blanket coverage that has strained state and federal finances for years.
Conclusion: Trenton Must Reject Higher Taxes
After the release of the Governor's budget, one observer joked, "There are no immediate plans to tax the air we breathe—not this year, at least."[36] The proposal does not include plans to tax oxygen and nitrogen, but it does tax the water residents drink. An additional 4-cent surcharge per 1,000 gallons is just another sad example of the extent to which some policymakers will reach to capture the maximum amount of revenue while avoiding political accountability.[37] Garden State taxpayers have forked over enough money to the state in the past few years and double-digit budget increases won't deliver relief from this oppressive climate. Based on the Governor's previous remarks and business background, he is well aware of the impact of taxation and government spending, yet his rhetoric is not reflected in the budget. If he thinks simply adding to New Jersey's already high tax burden will drive economic growth and fill the coffers, why is the state still mired in deficits after soaking residents for $3 billion in additional taxes? New Jersey government has played the role of tax-hiker well over the past few years. After billions of dollars in higher taxes and increased debt, perhaps it is time to audition for a different part, one in which elected officials will learn the lines of fiscal discipline.