FOR 190 YEARS, New Jersey had no income tax and no sales tax. As recently as 1966, it had only the third-highest property taxes in the nation.
Through home rule, local governments delivered efficient and inexpensive services. New Jersey's small towns powered the state to become an economic powerhouse, capable of turning on a dime to meet economic challenges as local governments capitalized on geographic strengths.
One of three states in 1966 with no sales or income tax, New Jersey boasted the strongest economy in the country. This was the place to live to start a business, raise a family and prosper. That is until the left marched in to make New Jersey progressive.
Like the other isms — socialism, communism, Marxism — progressivism is more than a doctrinaire approach to government: It is a religion that worships the common good while sacrificing individual liberty and prosperity.
The seeds for liberal change were planted in the 1950s when teachers unions began promoting a broader base of taxes to fund education. Even farmers were told they would benefit from broad-based taxes, never realizing this funding source would finance the most anti-business bureaucracy the farm industry would ever encounter — the Department of Environmental Protection.
Local officials trusted these new taxes would provide tax relief, never anticipating radical Council on Affordable Housing regulations that would force tens of thousands of taxpayer-subsidized low-income housing units into every municipality in the state or the never-ending flow of unfunded state mandates from Trenton's growing bureaucracy.
Rising trend
The progress to high taxes continued into the 1960s when on April 24, 1966, the Legislature passed a 3 percent "temporary" sales tax. Legislators claimed the tax would go away after four years. It did go away — it progressed to a permanent 5 percent tax.
On April 24, 1966, hundreds of suburban school students filled the State House wearing campaign buttons reading "Better Education through Taxation." This propaganda proved false. The 3 percent sales tax has grown to 7 percent. And New Jersey's property taxes, once the third-highest in the country, are now No. 1.
But like a drug addict needing another fix, Trenton's greedy progressives were hungry for more. In 1976, they told voters an income tax would "end the property tax crisis." That tax was passed with a top rate of 2.5 percent. Under former Gov. James Florio, the top rate would progress to 7 percent; under former Gov. James E. McGreevey, it would become 8.97 percent.
Today, we have the nation's worst income tax. We're tied for the highest state sales tax and have progressed to the highest property taxes in the nation. What happened to "Better Education through Taxation?"
Students in the Abbott districts, the most expensive school districts in the country, continue to receive a mediocre education as the teachers union uses faulty Special Review Assessment tests to conjure up phony graduation rates. Suburban property owners pay the highest taxes in the country and through the sales and income tax are paying property taxes for the Abbott districts as well.
'Metaphysicians'
Trenton's central government, the spawn of the progressive central planners gorging on broad-based taxes, has an insatiable appetite. The burden progressives have placed on taxpayers has taken New Jersey from the nation's greatest economy to one in decline.
The time is now to end the phony "progress" that is sapping our prosperity. It is time to dismantle Trenton's destructive bureaucracy and return New Jersey to its former grandeur — a destination state for those seeking opportunity, not entitlements, a magnet state for job producers, not welfare recipients and free from the manipulation of social engineers, the progressive ideologues who would manipulate every aspect of our lives from cradle to grave.
These abstract metaphysicians have had their way with us, taking us down a road to fiscal disaster and economic decline. New Jersey is fortunate. The problems we face were not brought upon us by a natural disaster like Hurricane Katrina. We are not engaged in a war like Iraq, nor are we suffering from an economic collapse outside our control. The problem is traced to one cause: the doctrine of progressivism. Trenton's central planners have wrought havoc on our once-prosperous state.
It's time to return to a system of home rule, individual opportunity and responsibility and its consequence — true prosperity.
Steve Lonegan was Mayor of Bogota, NJ, and is Executive Director of Americans for Prosperity - New Jersey. Americans for Prosperity (AFP) and Americans for Prosperity Foundation (AFP Foundation) are committed to educating citizens about economic policy and mobilizing those citizens as advocates in the public policy process. He is a prolific writer, having been published in newspapers and blogs. He just published a book, Putting Taxpayers First: A Blueprint for Victory in the Garden State, that discusses the impact of the Trenton government on the well being of the taxpayers of the state. He offers solid and workable solutions. Learn more at lonegan.com.
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Conservative Stalwart
http://www.theconservativeconsortium.com/conservative_stalwarts
Wait, what's the plan?
It is certainly all fine and good to say that we need to cut taxes and spending, allowing for a less regulated economy, but how?
When Gov. Corzine recently cut the budget to eliminate unnecessary programs, he was met with outrage by those who benefit from them. It is all fine and good to say that we need to cut taxes, but where will we find the money to pay for important social services?
You bring up the NJ education system, which is one of the best in the country. Would you have us cut spending on education and deprive our children of necessary skills and knowledge in adult life? You mention welfare, but NJ is one of the most prosperous states in America and has some of the smallest welfare rolls.
If you walk into a grocery store with $2 and milk costs $3, you don't walk out with a gallon of milk. We cannot pay for important services without money from taxation, so would you rather we pay taxes, or go without milk?
Putting Taxpayer's First
The best book written about NJ in decades. Pick up a copy, and learn how to fix NJ.
As someone in their mid-20's
As someone in their mid-20's who is desperately attempting to move out of New Jersey ASAP, I can totally relate to this article. Even with an advanced graduate degree, making more money than many of my peers, it's impossible for me to live in this state. What person starting out can afford a $300,000 home, just for the privelege of paying thousands of dollars each year in property taxes...and for what?...what services? Sure, raise the gas tax, make it cost $50 for me to drive to AC and back...put tolls on route 80 and route 78...and close all the parks and hospitals....but do me a favor? Just wait until next year, when I'm out of this sinking state.... What did Corzine do? Did he eliminate waste? Did he eliminate ridiculous spending? He eliminated PARKS? He cut HOSPITALS? How about this? Cut every department 10%. FIGHT the courts that are bleeding billions of dollars out of taxpayers every year funding school districts that give their bus drivers cellular phones or hire PR firms to publish their newsletters...do SOMETHING. Have the friggin' guts. We live in one of the richest states in the country, and yet we have no money. If people really expect me, or any other sane person in this state to beleive that, you've got to be kidding...
Well, it's only fair ...
It's only fair that progressivism destroy New Jersey since Conservatism is destroying America.
Anyway, it's debatable
We don't need radical changes to tax plans or schedules so much as we need broader bases for some of our old style taxes (and exempted items). There are stong arguements for making the motor fuel tax ad-valorem rather than flat, and some of these have merit. Certain clothing items should be exempt, but only up to a dollar limit amount in one purchase. Cable TV should definitely be taxed, is there a more shining example of luxury? Last but certainly not least, what better way to prompt conservation than a bottle and can tax on beverages? Other states do it with good results. It's perhaps an anachronism in New Jersey now, though, since we already have infrastructure in place for county-by-county recycling (the most muddle-headed plan of all) that would mean stranded costs if a bottle and can bill were to survive the legislature
More Taxes?
Taxing cable TV, bottles, cans, and clothes is not the answer to solve our problems. Our current problems have very little to do with revenues - heck, NJ has some of the highest taxes in the nation, and is one of the richest states in the nation. Our problem is EXPENDITURE, pure and simple. Raising taxes in a recession will only cause more individuals and businesses to flee NJ, further decreasing the tax base. Everyone in elected office is so afraid to tackle the real issues, like combining our state's hundreds of school districts or throwing money away on useless social programs that only help a small minority of the state's citizens. Why is cutting every state department 10% not a viable option?
That is ridiculous
@ FormerlyAnonymous
"It's only fair that progressivism destroy New Jersey since Conservatism is destroying America"
Progressivism is destroying America. This country has not seen conservatism in a very long time. Bush is not a conservative by any stretch of the imagination. Not even close. A conservative advocates limted government, balanced budgets, non-intervention, and fiscal responsability. These so-called "big government conservatives" and neocons like Bush are SO FAR from coservative. Over taxing, over spending, unconstitutional war, and debasing of our currency. NOT CONSERVATISM. Over the past century, Republicans have not been very conservative, but the Bush admin has brought Republicans so far from conservatism that most true conservatives no longer consider Republican Party to be the "lesser of the evils". The idea of voting Republican or Democrat gives us the illusion of choice without meaningful difference or informed debate. We argue about whether we should unconstitutionally occupy130 countries or 129. Monetary policy is the most important issue faceing this country right now and it is almost never mentioned. American politics since 1913 has been dominated by a a bi-partisan mission to completeley destroy our currency. Clinton and McCain(obama wasnt in office yet) both voted to go to Iraq. Clinton Obama, and Mccain all voted for the patriot act(twice).They all voted for REal ID. The past 3 presidents have bombed Iraq. The same 2 families have been dominating the presidency for 20 abysmal years. If hillary is elected, it could be 28 years. Why do we continue to votes for these crooks!?!?!?. now im just rambling ... but you get my point
Steve You're Dead Wrong
The corrupt business sector and the corrupt government sector are perversely allied.
You take one side over the other at your peril.
Only fundamental progressive reforms across the board will do the trick; and that transcends all your right wing nonsense.
From Frederick Douglass
Well said NjLibertarian4
I may not 100% agree that "progressivism is destroying America" but I certainly agree with your point that today's neocons aren't good conservatives at all--and that frustrates me immensely. If they were, we'd be better off.
Progressivism -- if we had it -- would be good!
Mr Lonegan is a "conservative" apologist for employers. As such, he opposes anything that would be beneficial to employees -- those of us who work for a living.
He offers the same falsehoods that have been undermining the living standards of most New Jersey residents for decades.
* Excellent schools;
* public services, roads;
* social welfare benefits like universal medical care, parental leave, family allowances, generous unemployment and disability coverage, state retirement plans and compulsory employer retirement plans;
-- all these cost a lot. And the vast majority of NJ residents needs them all.
The problem is not in the slightest what Mr Lonegan and other employer apologists state.
The problem is that
(a) taxation is not sharply progressive -- the more you earn, the more taxes you pay;
(b) regressive taxes such as the sales tax, which is a kind of "flat tax" (same rate for all), should be abolished.
"Conservatives" like Mr. L are apologists for employers, who want the highest profits while paying the least in wages, benefits, and taxes.
The vast majority of NJ residents are employEEs, not employERs. We, the employees, need sharply progressive taxation and far more benefits than we have.
Conservatism? Where?
It is disturbing to see the percentage of people who don’t think the over indulgent political crony class and the public worker and educational industrial complex are not a large part of the problem. Of course logic and reason hasn’t been a part of the average New Jerseyan’s political thought process in decades. This is how the Casino and Control Commission can have over 800 people on its payroll to monitor 11 casinos while the same function in Nevada, where there are over 430 casinos, is done by about have the state monitors! We have progressivism top to bottom in this country not conservatism and NJ leads the way. Homeland Security (not a conservative solution to security) funds go toward buying garbage trucks in Newark, a fireboat in Perth Amboy etc. Democrats and some Republicans gave away billions to agri-business in the Agricultural bill of 2007. Democrats even defeated an amendment to stop welfare payments to illegal aliens! As far as NJ, people talk of “home rule” but in actuality, there is also no state worse when it comes to local control. Tax money largely flows to the state and then back to the county and municipality with a myriad of mandates. NJ has the most generous/idiotic state pension system for all state employees and “part-time” politicians and we still wind up with corrupt public officials. Over 500 school districts, each requiring administration, round out the examples of waste, patronage and indulgence. You could list one abuse per day here and not even keep up with Trenton in their cronyism. So stupidity still rules here as evidenced by the fact that “progressive” politicians, who are driving employers and employees out of the state, are still elected.
The real problem
Corzine knows what it is...but he does not have the testicular fortitude to take it on. Would have to renege on promises to the unions which helped him get into office. Love how Jonny negotiated deals w/ NJEA and CWA before issuing spending freeze- take care of the two largest voting blocs and the hell with the rest of us.
AS LONG AS THEIR IS A VOID IN POLITICAL LEADERSHIP....The longer we continue to cowtow the NJEA, the CWA and the other rackets, this state will continue on its way to hell in a handbasket.
The key to making NJ more affordable and livable for all is to address public education. But in order to do so Jonny would have to go head up with NJEA who continues to gouge the life out of NJ. Be wary of any business or union, for that matter, that aggressively advertises. Spin spin spin...
Instead of mandating or at least encouraging cuts in education, what does Jonny do? A new funding formula pledging in excess of $500M, adds another layer, county superintendents. The last thing we need to do is move leadership further away from the school while adding another bloated salary...to do what monitor the districts in a given county? Thought the state handled oversight...are they asleep at the wheel?
One question for the NJEA- Why ar you so anti-charter school? Is it because they pose a threat to your strong hold or is it because they're pulling the covers off one of the biggest scams ever-- Abbot Funding.
Take Newark for example, which spends upwards of $18,000 per student on public education. Meanwhile, at most, charter schools in Newark receive just over $10,000 per student and no funds for facilities and, for the most part, are blowing the district out of the water when it comes to test scores, safety and other noteworthy indicators.
If NJ really wants solutions, its time we start to rethink our allegiances and say good bye to our friends in the union. But too many lazy New Jerseyans want something for nothing....eventually you have to pay. Stay tuned....njcuts
New Jersey is still White
as per headline of Star Ledger a while back. the real reason is that after World War 2 he had a migration of Black African Southeners, relatively uneducated, with a high crime rate, than in the 60's large hispanic population, culture clashes, social programs for votes caused higher taxes abbot schools etc. Hate to sound racist but the white areas of NJ are manageable if we didn't have to pay abbot school taxes..but it is not nice to talk about race...wish we could all live in peace SAWADEE STeve see you in Thailand-ray
RAYTRADE, that was by far
RAYTRADE, that was by far the most ignorant comment I've read. The "White areas" wouldn't have to fund Abbott schools if they'd stop using unconstitutional municipal zoning ordinances to keep families, "Black African Southerners" (by the way, you DO know it's 2008, right?) and anyone not over 35 making 6 digit numbers a year out of their towns, so they don't have to educate them or their children. No wonder they're "managable" ..