the staff of the Ridgewood blog
Ridgewood NJ, Tax revenues are up 2.9% over prior year , but a 7.2% increase is needed to fund existing and new spending programs. Sales tax and Corporate Business Tax grew above projections (corporate tax revenues 47% higher than prior year).
So the target for tax increases will again be the Income Tax. Last year, the state passed a multi-millionaires tax, so that card has already been played.
At the current growth rate as detailed in that legislative services report, and not accounting for higher revenues in the second half of the fiscal year, the state would fall about $5 billion short of the $33.5 billion in major revenues certified by the governor. The Treasury Department declined to say what its current projection for the end of the year is, but the ratings agency S&P Global Ratings said it calculates a $740 million shortfall if the trend continues.
Tax increases continue to drive people and businesses out of New Jersey further slowing the states already anemic economic growth,causing even a further deterioration in tax revenues .
The states special interest groups, ie unions and various victim hood coalitions will not allow a reduction in spending by reforming the big-ticket spending items in the budget.
Bottom line: things will continue to get worse until taxpayers begin electing fiscally responsible politicians.