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MASSIVE NEW PROPERTY AND SALES TAX INCREASES COMING FOR NEW JERSEY TAXPAYERS TAXPAYERS
Assemblywomen Holly Schepisi
River Vale NJ, As of the end of 2019, New Jersey owed $44.4 billion in bonded debt obligations and combined with nonbonded long-term obligations — such as all the money owed to retired public workers who’ve been promised a pension in New Jersey — well over $200 billion, roughly five times the size of the state’s annual budget.
These numbers put us consistently at the bottom of all states for our fiscal health. Rather than reforming our pension systems and creating a fiscally healthy pathway forward, the Governor and the New Jersey Democratically controlled Legislature is voting today to issue up to $9.9 BILLION in additional debt. The argument given is that because the Governor shut down all businesses, the State is now struggling financially. However, we do not yet know what the actual figures are because taxes were only due yesterday.
With respect to the $9.9 BILLION, no information has been provided as to how or where this money will be spent.
No information has been provided as to how the decisions will be made, other than a report will be provided to a Select Commission which is comprised solely of 2 members selected by the Democratic Senate President and 2 members selected by the Democratic Speaker of the Assembly with no input or representation from any member of the Republican Legislature.
When asked how the State intends on paying the massive interest payments, no answers have been provided. Instead the bill includes a new STATEWIDE PROPERTY TAX and INCREASED SALES TAX to pay the principal and interest. This STATEWIDE PROPERTY TAX will be determined solely by the State Treasurer who will direct our municipalities to assess each and every homeowner and then collect an additional tax from us.
I will be voting NO on this bill for a whole host of reasons including 1. we do not yet know what the State’s overall fiscal picture will be until the Treasurer provides us with a report of the tax revenue collected yesterday, 2. no additional debt should be incurred unless we have a plan in place to reduce our overall future obligations including a total revamping of our unsustainable pension system, 3. any significant issuance of new debt must have an identifiable source of repayment that DOES NOT INCLUDE A STATEWIDE PROPERTY TAX.