Assembly Republican Leader Alex DeCroce

DeCROCE: DEMOCRATS HAVE TURNED OPPORTUNITY
FOR TAX REFORM INTO A TAX FRAUD

Accuses Governor and Democrat Legislative Leaders of
Hoodwinking Middle Class Taxpayers

Assembly Republican Leader Alex DeCroce today accused Gov. Jon Corzine and Democrat legislative leaders of trying to dupe taxpayers by introducing legislation to implement a 20 percent property tax cut that would actually provide most middle class families less tax relief than they received under Republican - and Democrat - rebate programs in the past.

"This isn't tax reform," said DeCroce, R-Morris and Passaic. "It's tax fraud. It will rob middle class families of relief they deserve - and actually received in the past.

"How can Democrats look taxpayers in the eye and pretend this hoax will actually help them survive New Jersey's oppressive tax burden? Their plan is bogus. It's not a step forward. It's really a step backward for taxpayers."
Under the Democrat plan, households earning up to $100,000 would get a 20 percent tax cut, those earning up to $150,000 would get a 15 percent cut, and those earning up to $250,000 would get a 10 percent cut. Anyone fortunate enough to get a 20 percent credit could see an average $1,200 reduction. Those earning between $100,000 and $250,000 would likely receive a credit between $800 and $1,100. The maximum tax credit under the Democrat plan would be $2,000.

"Senior citizens do no better under this scheme than they do under the current rebate program," DeCroce said. "So for them, this isn't tax reform. It's a wash.

"For non-senior homeowners, it gets even worse. Many will not get a cent more in relief than they did under the NJ SAVER rebate program established by Republicans or the FAIR rebate program established by Democrats."

The non-partisan Office of Legislative Services has confirmed that the largest property tax relief check disbursed to a non-senior homeowner came under the NJ SAVER program in FY 2003. In that year, homeowners with a household income up to $200,000 received 83.3 percent of their 1997 equalized school tax rate applied against the first $45,000 of the equalized assessed value of the homeowner's primary residence. Hence, NJ SAVER checks differed according to the school district in which recipients were living. While the statewide average in FY 2003 was $505, the average for the municipality with the highest NJ SAVER amount, Roosevelt Borough in Monmouth County, was $1,172.

"How does a homeowner in Roosevelt who received more than $1,100 in property tax relief from the state five years ago benefit from an $800 or $1,100 tax credit today especially when you consider their property taxes went up an average of 35 percent during that period?" asked DeCroce. "They would do better if the Democrats just kept the NJ SAVER program and funded it at FY2003 levels."

According to OLS, under the McGreevey administration the largest homestead rebate amount for a non-senior household with an annual household income no greater than $125,000 was $800 in 2004. This was the only year that the "FAIR" rebates were fully funded by the Democrats.

"Why should homeowners who got an $800 rebate check in 2004 jump for joy if they get an $800 property tax credit in 2007 when their property taxes climbed 14 percent during that time?" asked DeCroce. "This is what the Democrats call progress on the tax reform front?"

DeCroce said taxpayers deserve better than the "scraps" served up by the Democrats. He said the Democrats should consider his proposal:

* A permanent, constitutionally-guaranteed 30 percent property tax cut for all primary residences with a combined household income at or below $200,000.

* A permanent, constitutionally-guaranteed 20 percent tax cut for all other households.

* A guarantee that senior citizens on fixed incomes get a 30 percent or $2,000 property tax credit, whichever is higher.

* A $5,000 cap on any property tax credit.

*Doubling the size of renter rebates.

It is estimated this program would cost about $3 billion a year. At the outset, it would be funded by the $1.2 billion now earmarked for rebates and $2.2 billion in recurring savings identified by Republican members of the Assembly Budget Committee in 2006. It would be sustained by tighter controls on state spending, local efficiency options contained in the original 2005 blueprint, and cost-cutting measures recommended by Republican members of the joint legislative committees that examined property tax reform in 2006.

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For more information, contact:
Assembly Republican Leader Alex DeCroce / 973-984-0922
Assembly Republican Press Office / 609-292-5339