MISSION ACCOMPLISHED?

DeCroce Says Economist's Analysis Underscores Need
To Continue Working on Permanent, Meaningful Property Tax Reform

Assembly Republican Leader Alex DeCroce says a troubling analysis by respected Rutgers University Economist James Hughes that concludes the increase in taxes for the average New Jersey taxpayer will more than offset any property tax relief he gets this year demonstrates once again the need for the Legislature to continue working on property tax reform.
DeCroce said Hughes' warning, which was contained in a news story broadcast by Millennium Radio New Jersey this morning, reaffirms his belief that the property tax credit approved by a bipartisan vote of the Legislature, "only chips away at the massive property tax load carried by most New Jersey households."

"It is obvious that the 10-to-20 percent tax credit program devised by the Democrats falls far short of the mark and that taxpayers deserve better," said DeCroce, R-Morris and Passaic.

According to the Millennium Radio report, the maximum $1,051 property tax credit that the average household will see under recently passed relief bill will be dwarfed by the increase in taxes that household will have to cope with this year. Hughes said the average family will need about $2,700 in tax relief just to break even.

If you factor in the 7 percent rise in property taxes that's expected this year, the $1,051 savings estimate offered by the state Treasury Department yesterday will really be about only $780. Hughes said that in order to keep up with inflation and the recently expanded state sales tax, the typical New Jersey family would have to see "a basic cost of living increase of about $2,700."

Hughes said if an unforeseen emergency forces prices up, then the tax relief gap "could easily increase by a thousand dollars."

"It's wrong to think nothing more needs to be done because taxpayers will be happy and satisfied once they get a check from the state this fall," DeCroce said. "We should keep working until all taxpayers, especially hard-pressed middle class families, see lasting, permanent tax relief than makes more than a dent in the problem."

DeCroce said taxpayers are distrustful of claims by Democrats that the 10-to-20 percent property tax credit will endure beyond the next election because they have seen the Legislature take back what they have given taxpayers in the past. He said that is why the Legislature should consider a measure he is sponsoring (ACR-86) that would implement at 20-to-30 percent property tax credit for all households and authorize a referendum on an amendment to the state constitution that would guarantee the credits are permanent.

"Democrats keep offering the same old lame excuse that a constitutional guarantee is unwise because it would tie the Legislature's hands in case a fiscal emergency arose," DeCroce said. "That's the whole point of amending the constitution.

"No matter what, Democrats always find enough money for special interests and political pork, but not those who need help the most - New Jersey's seniors and middle class families who can't afford to live here anymore because Democrats have made the state unaffordable. The taxpayers should be our first priority."

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