O’TOOLE TEAM SAYS SALES TAX DESIGNATON FOR PROPERTY TAX RELIEF IS WRONG SOLUTION

 O’TOOLE TEAM SAYS SALES TAX DESIGNATON FOR PROPERTY TAX RELIEF IS WRONG SOLUTION  

Bergen County -- Assemblyman Kevin O’Toole said today that Democrat efforts to dedicate one penny of the state’s 7 percent sales tax to property tax relief is  “another political gimmick that fails to address the root cause of the state’s fiscal problems: spending.”  

 “Rather than trying to develop a new gimmick to stem the tide of rising property taxes, the legislative majority should be dealing with ways to cut government spending,” said O’Toole.

“The problem with the state’s property taxes isn’t that there isn’t enough revenue, it’s that the state continues to spend too much.”

O’Toole’s Assembly running mate Wayne Township Mayor Scott Rumana says suburban homeowners will never see real property tax reform unless the state legislature reduces or funds state mandates.

“As long as suburban local property taxpayers are forced to shoulder the cost of state mandated programs and regulations for their towns and the cities, they will never see meaningful reductions in property taxes,” said Rumana.  “The cost of those mandates will continue to outweigh any effort to fund tax relief by increasing the state’s sales tax.” 

O’Toole noted that this year’s so called property tax relief is being paid for largely by the one-cent increase in the sales tax approved last year by the Democrats. Half of that increase is funding this year property tax rebates; meaning that homeowners are paying for their own tax rebates every time they shop. 
 

 “This year’s tax rebate plan is an election year gimmick that cannot be financially sustained,” said O’Toole. “The Democrat leadership knows that, so now they want to take another half penny and put it toward tax relief. And next year, when state spending increases again, the Democrats will be looking to increase the sales tax from 7 percent to 8 percent – taking more money out of the pockets of the middle class.”

O’Toole and his other running mate, Assemblyman David Russo, said Republicans have offered $2.2 billion in state spending cuts that the Democrats refuse to even acknowledge.  

 “Before we begin even thinking about increasing or expanding the sales tax, the legislature has to deal with cutting spending,” said Russo, noting the state budget has grown by $8.9 billion between fiscal year 2002 and the current budget. 

Russo added that: “Dedicating a penny of the sales tax to so called tax relief will ensure only two things: that New Jersey will continue to have one of the highest sales taxes in the region, making us less economically competitive than our neighbors, and that state spending will continue to increase. 

“Using the sales tax as means of offsetting property taxes offers no incentive to cut state spending. It will just give Trenton Democrats a slush fund from which they can tax the middle class to pay for urban tax relief,” added Russo  

The O’Toole team pointed out the state is in dire financial straights and the Democrat legislators have to stop looking for gimmicks to solve the state’s financial crisis.

 They noted:

   ·        Gov. Corzine proposed budget will increase state spending again by another $2.5 billion to $33.5 billion -- but that will likely prove in adequate to finance the state’s growing pension deficit.

 ·        In 2006 New Jersey increase sales, corporate and other taxes by $1.84 billion – the highest in the nation (AP). 

 ·        Financial experts predict that the 2008 budget is facing a structural deficit of $2.5 billion.   

 “New Jersey cannot spend its way out of its tax crisis. We must start cutting costs,” said O’Toole.