Governor Phil Murphy and Democrats in the state legislature have praised the recently passed state budget for providing relief and improving New Jersey’s economy. Neither of those are true. Please let me explain.
If you’re hoping for an immediate tax cut, nothing.
Checks labeled for property tax relief will not be sent until May 2023. The only reason the checks arrive is because they are meant for only a select few. That is correct. Residents are being taxed more than ever to drive the Democrats’ massive $50.6 billion spending plan for this year.
Real tax cuts come immediately and permanently as a result of lowering income tax rates and other taxes, or actually lowering property taxes instead of taking money out of one pocket and putting it back in another. must be That’s what their ANCHOR rebate program really does. It spends too much of your money and gives you back less than you paid for. Murphy calls it tax relief. it’s not.
Their other effort is to show that everything is wrong with the sloppy government approach of the “ready, fire, then aim” style that inevitably calls for a so-called “fix” bill. Typical. A new child tax credit was passed to provide an additional amount for families with incomes below her $80,000 for each child under the age of six. The problem is that the tax credit will not be offered until 2024. So we already need another “fix” bill.
Republicans have proposed an amendment to increase and expand it to help more people by giving more money to all children, not just children under 6. That fix should have taken effect immediately as well. Democrats rejected it.
The next day Murphy promised to correct the mistake. He was warned, and so were Democrats before the bill passed. It could have been fixed on the spot, but the warning fell on deaf ears as usual. Helping more people is unacceptable to the Trenton Democrats if the Republicans propose to do so.
So is the economy.
Murphy, House Speaker Craig Coughlin and Senate Speaker Nick Scutari recently spoke about how this budget will be positive for the economy and how New Jersey’s economic growth is outpacing the nation. made these claims on the same day that the Federal Office for Economic Analysis released the state’s first-quarter GDP for the year.
As a result, New Jersey’s economy contracted 2.2% and the US economy as a whole contracted 1.6%.
In fact, New Jersey is worse off than any other state on the East Coast. West Without Virginia and Kentucky, New Jersey would have the worst economy in the eastern United States. Despite being in one of the best locations in the country for a vibrant economy, high taxes all create an economic environment as bad as in the heart of Appalachia.
There is a very simple way to turn this situation around and make New Jersey’s economy one of, if not the best, economy in the country. It’s been proven over the last decade. We need to lower our business tax rate and I support legislation to do that.
This is what North Carolina did in 2013, when New Jersey expanded its business tax credit program. This is another government program that didn’t solve the problem of high taxes plaguing the state and everyone who lives and works here.
After North Carolina changed its tax laws to lower business and income taxes, North Carolina led the nation’s economic growth for the next three years. It went from one of the worst states to do business in to one of the best, nowhere near New Jersey. Instead of receiving large sums of money and giving back some, governments allow people and businesses to keep more of the money they earn.
In contrast, expanding a large government bureaucracy has made New Jersey one of the worst places to own a business in the country and one of the worst economies. The title has not been relinquished since.
When Murphy took office in 2018 and joined Democrats in raising taxes, it led to the worst job growth since 2011, but national job creation after the federal tax cut far exceeded expectations.
That is the effect of taxes on the economy. Historically, it has also meant higher returns. If not, businesses and people deserve their hard-earned money more than the government.
Congressman Christopher DePhillips represents parts of Bergen, Essex, Morris and Passaic counties in Legislative District 40. He has been a member of the New Jersey Legislature since his 2018.