#1 Tax Increasing State in the Nation, Again
Americans for Tax Reform reports:
$1.4 Billion in New Tax Increases Will Bring
the Cumulative Total to $17 Billion Since FY 2002
WASHINGTON – As the deadline approaches for the New Jersey
legislature to finalize their work on the fiscal year 2007
budget, Americans for Tax Reform (ATR) today released the state
by state breakdown of proposed FY 2007 tax increases and cuts.
The Garden State continues to be the top tax raising state in
the nation and if the Corzine or the Assembly Democratic
proposal of $1.4 billion in tax increases is approved, New
Jersey will only further cement its position as the #1 tax
raising state in the country.
According to data from the National Association of State
Budget Officers (NASBO) and analyzed by Americans for Tax
Reform, from fiscal year 2002-2006, New Jersey raised taxes a
cumulative $11.8 billion, which is $1,358 per person. For a
family of four this would represent an additional $5,432 in
additional taxes paid to New Jersey’s state government.
However, the Corzine Administration is seeking to raise
another $1.4 billion in taxes. This is the largest tax increase
among all 50 states for fiscal year 2007 and some states are
significantly cutting taxes. If the proposed tax increases go
through, the cumulative total for tax increases will reach $17
billion, $1,951 per person and $7,804 for a family of four since
fiscal year 2002. Excluding New Jersey from the national totals,
the average cumulative tax increases for the country in the same
time period was just $290 per person and $1,160 for a family of
four. As such, New Jersey has raised taxed nearly seven times
the national average since fiscal year 2002.
Among the key findings of this year’s state tax actions:
1. No other state in the country has raised taxes more than
New Jersey over the past six years.
2. If $1.4 billion of tax increases are passed, the
cumulative tax increases will total $17 billion over this time.
3. Every man, woman, and child will have paid an additional
$1,951 in taxes.
4. If $1.4 billion of tax increases are enacted, 17 percent
of all state taxes nationally will have occurred in New Jersey,
while New Jersey represents just 3 percent of the population.
5. New Jersey has raised taxes 573 percent more than national
average of $290 per person during this same time period.
6. The second highest tax increase state in the country,
Nevada, has levied “just” $1,110 of additional tax payments on
7. Therefore, New Jersey has raised taxes an astonishing 76
percent more than the second highest tax raising state.
8. The closest neighboring states to New Jersey, Connecticut
and New York, “only” raised taxes half as much on their citizens
by $1,094 and $954 respectively over the same time period.
9. Pennsylvania, despite its much larger size than New
Jersey, raised taxes by a cumulative total of $541.9 million
over the past three years, pennies compared to New Jersey. Every
man, woman, and child paid $43.60 more in taxes.
We would note that if the proposed spending plan is enacted
state spending will have increased 45 percent since fiscal year
2002. For all the poverty crying in Trenton, spending continues
to increase at a much faster rate than New Jersey working
To date, no one has asked the right questions:
1. If Jim McGreevey came to office with a $5 billion
budget deficit and the state raised taxes more than any other
state in the country, increased debt by $14 billion, and still
has the highest property taxes in the nation, why then does Jon
Corzine have the same $5 billion budget deficit today?
2. And why are states which raised taxes by much less
amounts during the economic downturn actually cutting their
income and sales taxes while New Jersey is raising them?
Obviously, these questions should be fully answered before
the vote on the budget is put on the floor or in committee.