The middle class taxpayers of New Jersey are under assault. They are caught in the cross hairs of an attack from their liberal tax and spend Governor and surprisingly from the right, in an attack from their supposed friend in ultra conservative candidate Steve Lonegan. While Governor Corzine's plan to increase taxes, to end the property tax rebates and to eliminate the deduction for our outrageous property taxes for the middle class were to be expected, I had some hope for relief from Mr. Lonegan. As I have some insight into State Budgets and New Jersey's tax policies, I thought I would check him out.
I have to wonder if he simply does not understand the New Jersey income tax system, or worse if he actually intends to increase the income taxes for two thirds of New Jersey's residents. While his plan sounds simple and perhaps appealing, the idea that we could replace our current graduated tax rate with a single or flat rate system, a simple review of the numbers shows this plan to be a flat out loser, destroying the middle class and seniors while rewarding only the most affluent.
Mr. Lonegan claimed in his press release that his plan would benefit an "overwhelming majority of homeowners and taxpayers", the facts and the numbers are not on his side. I went to the Department of Treasury website and looked at the data for the most current tax year and confirmed my belief that his plan would devastate the middle class and the senior citizens of this State.
The truth is that every married couple filing a joint return, with an income under $100,000. Some 860 thousand New Jersey families would see their income taxes dramatically increase under his proposed flat tax. In fact, families with a taxable income of $70,000 would see their income tax increase over 56%. So much for helping the middle class and New Jersey's working families.
The numbers are very similar for taxpayers who file individual returns. Taxpayers with an income under $50,000 would pay a staggering increase, as much as doubling their tax burden. Over 1.4million taxpayers earning less than $50,000 file their returns using the single status and would be penalized by this new "flat tax" scheme.
Senior citizens are particularly vulnerable to the damaging impacts of this flat tax. There were over 400,000 tax returns filed for 2006 where at least one filer was over 65 years of age with a reported income of less than $50,000. This represents 76% of the total tax returns for that year where at least one filer was over 65. The Flat Tax scheme is a staggering and indefensible tax increase for our seniors without any value or benefit.
The Lonegan "Flat Tax" scheme is nothing short of an assault on the middle class and senior citizen population of New Jersey. By my calculation, over two million taxpayers would see an increase while a million would see a reduction. With two thirds of the state losing, this plan is a "Flat Out Loser". On top of that, Steve suggests that this plan will not significantly reduce the total tax receipts; he appears to simply want to tax the middle class and seniors while giving incredible breaks to the rich.
I believe that we all need a break from the staggering taxes in New Jersey and guess I will have to keep looking for help.
Peter Lawrance served as Acting State Treasurer in 2001-02. He spent 22 years in the Office of Legislative Services Budget Office, and seven years as Deputy State Treasurer and Deputy Director of the Office of Management and Budget
Garden State Equality fires new broadside at Dems Smarting over the state Senate's refusal to pass marriage equality and disillusioned at the moment with the Democratic Party majority, Garden State Equality’s 85-member Board of Directors unanimously decided against giving financial contributions to political parties and their affiliated committees. ...
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- PolitickerNJ.com, 02/08/10Press releases are submitted by PolitickerNJ users, not by staff. They do not represent the viewpoint of PolitickerNJ.com.
I would like to see how
I would like to see how Lonegan responds to this. This is coming from a life-long bureaucrat who has been working in the State budget system for decades. In other words, he was part of the crew that has been going along with all this stuff. He is against Lonegan ...
If there is ever a reason to vote FOR Lonegan, this is it.
Scare tactic
"The Lonegan "Flat Tax" scheme is nothing short of an assault on the middle class and senior citizen population of New Jersey."
This is just a typical scare tactic that seniors and hard working families are going to have to pay more- right now with the one of the highest tax rates NJ can't even pull in the revenue that the budget is based on- PA works under a flat tax and NJ residents are heading there-- consider it an oasis not an assault.
The only assault will be the status quo -- punishing hard working families by forcing them to continually pick up the tabs of NJ's social programs- cut those- gain revenue- and STOP bleeding taxpayers dry!
They don't look at other
They don't look at other states that are run more efficiently, somerset. Instead of looking at how a successful state prioritizes it budget, Corzine asks citizens for ideas, so he can then say that no one could do any better than his inept administration.
"a single or flat rate system, a simple review of the numbers shows this plan to be a flat out loser, destroying the middle class and seniors while rewarding only the most affluent."
Actually Lonegan's idea is fair. It would the reward affluent .. small businesses? Businesses who in turn higher more workers, growing the private sector for the first time in 10 years, rather than the filthy stinking rich public sector. Lonegan's plan is to reduce the flat tax every year after firing pointless state workers, abolishes COAH, puts a nail in the coffin of A rail tunnel, universal preschool, clears the NJ court of judges who overrule voters who voted to stop borrowing... and of course fight our grossly over funded abbott districts.
A Flat tax wold be offset by decreased taxes down the line, not to mention wage growth rooted in real demand instead of fake government "green" jobs the state invents.
Surely this jack off peter lawrence didn't care about hurting the middle class when it came to Corzines implementing his toll hike scheme, sales tax increase, paid leave payroll tax or all manner of his big government projects that are sure to kill the state even further.
flat tax in Russia has been successful:
http://www.heritage.org/press/commentary/ed032403.cfm
And PA has 3% flat tax while Lonegan is calling for a 2.9% tax to be reduced to a 2.1% in the third year.
Christie Redux
Peter Lawrence is clearly looking to return to state government under another administration under someone else with the name, Christie.
He was part of the original treasury team that helped develop the Whitman pension bond debacle.
So for him to trash anyone's tax plan, even Corzine's is about as hypocritical as it can get.
I only wonder what tresury position Chis Christie pomised him under his administration. This is anything but an unbiased opinion.
This begs the question CC has yet to answer
Agree or disagree with Lonegan's flat tax proposal, at least he HAS a tax proposal to tout on the campaign trail.
Christie's tax plan is nothing more than the kind of stock blather every politician spews when they have no innovative solutions. Come on Chris. Give me something to work with here. You're killing me big man!
And Chris, if the best surrogates you can muster to carry your water on this site are Alan Steinberg and a spectacularly unspectacular career bureaucrat like Peter Lawrence, you need more help than I thought.
Snake Pliskin? I heard you were dead.
The Corzine people are in panick mode
DeMicco, Lawrence, Roginsky, et al have prepped themselves for a race with Christie, who they know they can beat.
Lonegan is the wild card they can't beat and they know it.
Lonegan is the person they don't want to ru against.
Vote Column "A" - All the way!