TRENTON-With the state’s comeback now underway, it’s time for cash-strapped New Jerseyans to get some tax relief, Governor Chris Christie’s said in his budget speech today. But how to give that relief is a matter of debate with state Democrats.
Christie has proposed a 10% across-the-board income tax cut as part of his $32.1-billion budget, which he stated accelerates job growth without raising taxes. “It’s time for real relief,” Christie said.
Democratic leaders, however, favor property tax cuts as more fair to the middle and working class, and more conducive to attracting resident and restarting the housing market.
“It’s not the income tax that’s the problem, it’s the property tax,” said State Senate President Stephen M. Sweeney (D-Gloucester) said after the speech. “His focus is wrong. Once again, he’s promoting a scheme that protects the wealthy. We’ve coddled millionaires in this state long enough.”
The housing market remains depressed, Assemblywoman Sheila Y. Oliver (D-Essex) added. “The key to stopping the slide of value is getting the real estate market moving,” she said.
Christie acknowledge that the state’s taxes are higher than those in competing New York, New Jersey and Connecticut, and said he would veto any tax increases. Property taxes rose 70% in the decade prior to his election, he said, adding, “the property tax cap we enacted together is beginning to work.”
The property tax rebate program was altered last year to give the monies as a credit, “and there will be no cut in property tax relief in this budget,” Christie said. “The way to ensure that politicians will not waste your money is not to send it to them in the first place.”
The budget also calls for an increase of $200 million allocated to school aid for a record $8.8 billion, and a request of $89 million to fund a transportation capital plan, among other issues.
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