Coalition
advocates further tax raises
Thursday, March 30, 2006 • BY
JOE DONOHUE • Star-Ledger Staff
Gov. Jon Corzine is drawing fire for
proposing $1.5 billion in tax increases for the
cash-strapped state budget, but a coalition of citizens
groups and union yesterday said he isn't going far
enough.
The Fairness Alliance yesterday called
for nearly $800 million in higher taxes to restore cuts in
higher education and other areas targeted by
Corzine.
The groups, which include the New Jersey
Education Association and the Communications Workers of
America, two powerful unions, urged a $462 million income
tax increase for more than 100,000 taxpayers who earn
$200,000 to $500,000, and more than $300 million in extra
business taxes and suspended tax breaks.
"This change would ... add a further
measure of equity to New Jersey's overall tax structure and
call upon those among the most able to pay to contribute
more of their fair share," said Jon Shure, president of New
Jersey Policy Perspective, a liberal think tank and alliance
leader.
The groups did not specify how the extra
taxes should be spent. Shure said restoring some of Cor
zine's proposed $169 million cut for higher education would
be a start, along with more property tax relief. He said it
"strains the notion of fairness" to continue tax breaks for
businesses "at a time of crisis when college students,
Medicaid enrollees, property taxpayers and others are called
on to sacrifice."
Two years ago, the alliance persuaded the
Legislature to boost the income tax rate on taxpayers who
earn more than $500,000, a move that netted $800 million. It
now would impose the same 8.97 percent rate on all taxpayers
who earn more than $200,000 -- up from a top rate of 6.37
percent.
But Corzine's pending $30.9 billion
budget already is meeting resistance in the Legislature
because of its tax increases, which include boosting the
sales tax from 6 to 7 percent. A spokesman for the governor
and lawmakers of both par ties voiced little enthusiasm for
more tax increases.
"After proposing $2 billion in budget
cuts, the governor concluded that the sales tax, not the
income tax, should be the primary tool for generating new
revenue," said Anthony Coley, the governor's spokesman. He
added that the governor shied away from major business tax
increases to try to stimulate the economy.
Assemblyman Louis Greenwald (D-Camden),
the Assembly Budget Committee chairman, said, "We'll
entertain anybody's recommendations, but before we look to
raise taxes, these groups ought to look how we can save
money." Assemblyman Kevin O'Toole (R-Essex), another
committee member, called the alliance plan "a terrible idea.
The problem is we tax too much and we spend too
much."
The alliance generally gave Cor zine good
grades for his first budget. "The Corzine budget makes a
good start toward putting New Jersey on a firm financial
footing -- important if the state is to have a government
that meets the needs of its citizens and invests in the
future," said Ev Liebman, a representative of New Jersey
Citizen Action, an alliance member.
Joe Donohue covers state government and politics. He may
be reached at jdonohue@starledger.com or (609)-989-0208.
© 2006 The Star-Ledger. Used by NJ.com with
permission.
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