New Jersey Budget Deal Reached

NBC 10, Philadelphia NBC affiliate ^ | 7/6/2006 | NBC 10

[AbeKrieger]

New Jersey politicians have reached an agreement that will end the state budget crisis.

The deal will be announced later this afternoon by Gov. Jon Corzine at a news conference. That conference is tentatively scheduled at 4:30 p.m. NBC 10 News and NBC10.com will live video coverage.

Corzine hammered out a deal with his fellow Democrats, who were fighting him over a proposed sales tax hike, according to sources.

The deal was reached six days after state government shut down, a high-ranking Statehouse official said.

"They'll be announcing the final elements later this afternoon," said the official, who spoke on condition of anonymity.

The deal calls for using half the $1.1 billion to be raised by a sales tax increase to lower property taxes, and using all of the revenue for that purpose next year, a different high-ranking Statehouse official said, speaking on condition of anonymity.

[AbeKrieger]

So, Corzine basically got his sales tax...

[VeritatisSplendor]

and the budget didn't get cut, and the deficit increases, and the pension gravy train rolls on...

Mrs VS

[tennmountainman]

Tax Raisers Win In NJ.

Thank God I don't live in NJ. The most overtaxed State in the Country.

[socal_parrot]

Just in time for the weekend.

[Lancey Howard]

LMBO!!
New Jersey - - what a pathetic toilet!

[Fudd]

Why are New Yorkers so depressed?

Because the light at the end of the tunnel is New Jersey!

[nmh]

"The deal calls for using half the $1.1 billion to be raised by a sales tax increase to lower property taxes, and using all of the revenue for that purpose next year, a different high-ranking Statehouse official said, speaking on condition of anonymity."

It's a shell game. Still funding everything we shouldn't be.

LOWER property tax but RAISE SALES TAX. He'll probably get MORE from the SALES TAX. Properties are sitting on the real Estate market and many are still UNDER assessed.

[dashing doofus]

Contrary to the article, this will not solve the "budget crisis." It will push it off to next year, when, low and behold, the new sales taxes will NOT be used to offset property taxes, but to take care of "mandated spending" on things like pensions, etc. What the pols mean by "mandated spending" is dollars to public sector unions to ensure their re-election. Both parties are guilty of this (but more so the Dems), but the public is woefully unaware of the fiscal games played by the pols.....

PJ O'Rourke put it best: "Giving money and power to a politician is like giving whiskey and car keys to a teenager."

[nmh]

and the budget didn't get cut, and the deficit increases, and the pension gravy train rolls on...

Mrs VS

You're right, Mrs. VS.

The ROOT problem is ALWAYS IGNORED by Demoncrats.

[SkyPilot]

The deal will probably be this:

- Instead of propery tax "relief" - they will skyrocket, because we all know only rich people own houses, so they should pay more.

- A sales tax hits everyone equally, and we can't have that.

- Spending on pensions will skyrocket, because that is what the Unions ordered the Democrats to do

[6ppc]

Jerseyites better hang on to their wallets!

[Mannaggia l'America]

The deal calls for using half the $1.1 billion to be raised by a sales tax increase to lower property taxes, and using all of the revenue for that purpose next year, a different high-ranking Statehouse official said, speaking on condition of anonymity.

Yep, that's what I thought they would do. They'll collect the sales tax, then let you grovel to get some of it back through a property tax rebate.

It's the "Best Buy" plan - the sales tax is now 7% but only 6.5% "after rebate".

How much you wanna bet it's not all going for property tax rebates next year...

It will be Clinton all over again with his middle class tax cut after he got elected. "I just can't do it..."

[1Old Pro]

The deal calls for using half the $1.1 billion to be raised by a sales tax increase to lower property taxes, and using all of the revenue for that purpose next year, a different high-ranking Statehouse official said

Typical Dems, raise the sales tax which is regressive and give the taxes back to property owners. Why not just keep the taxes the same and reduce spending to fund property tax reductions.

[tuvals]

I'm with you! The casino's pay a fortune in taxes to this backward state and they need to raise taxes. OK, all government officials, turn your pockets inside out. The great God's or Goddesses of New Jersey sold the public out. Well, they put Corzine in office so let them all eat crow!

[Williams]

And what is the logic of raising one tax to relieve the effects of another? Literally stealing from the poor in this case to feed the rich. Plus only half goes back to taxpayers this year, and who can guarantee what happens next year. What a mess.

[VeritatisSplendor]

"The ROOT problem is ALWAYS IGNORED by Demoncrats."

Yes, but in NJ, we're lucky to have a two-party system so the RINOs can ignore the problem too, when they're in power.

Mrs VS

[Williams]

I'm still waiting for republicans to capitalize on this as Whitman did against Bradley/ Florio. Tom Kean Jr., where are you??

[VeritatisSplendor]

Oh, please spare us any more Whitmans and her ever-lasting judges. And state debts.

Mrs VS

[AbeKrieger]

Literally stealing from the poor in this case to feed the rich.

Hey wait a minute, I did not realize Corzine was a mean ol' Compassionate Conservative reverse Robin Hood !!! Now all those poor, historically underprivileged minorities will have to pay an extra point on their "bling-bling"... UNFAIR !!!!!

But the socialist unions get theirs, and in the end, isn't that all that matters?

[Williams]

OK then you can have democrats, liberal judges and tax increases.