• Tips gratefully accepted here. Thanks!:

  • Recent Comments

    HerstoryRepeating on Bring on the Conspiracy T…
    Catscatscats on Bring on the Conspiracy T…
    Earlynerd on Bring on the Conspiracy T…
    William on Bring on the Conspiracy T…
    HerStoryRepeating on Bring on the Conspiracy T…
    Catscatscats on Bring on the Conspiracy T…
    William on Bring on the Conspiracy T…
    Ga6thDem on Bring on the Conspiracy T…
    William on Bring on the Conspiracy T…
    Ga6thDem on Bring on the Conspiracy T…
    Ga6thDem on Bring on the Conspiracy T…
    Ga6thDem on Bring on the Conspiracy T…
    Ga6thDem on Bring on the Conspiracy T…
    Ga6thDem on Bring on the Conspiracy T…
    William on Bring on the Conspiracy T…
  • Categories


  • Tags

    abortion Add new tag Afghanistan Al Franken Anglachel Atrios bankers Barack Obama Bernie Sanders big pharma Bill Clinton cocktails Conflucians Say Dailykos Democratic Party Democrats Digby DNC Donald Trump Donna Brazile Economy Elizabeth Warren feminism Florida Fox News General Glenn Beck Glenn Greenwald Goldman Sachs health care Health Care Reform Hillary Clinton Howard Dean John Edwards John McCain Jon Corzine Karl Rove Matt Taibbi Media medicare Michelle Obama Michigan misogyny Mitt Romney Morning Edition Morning News Links Nancy Pelosi New Jersey news NO WE WON'T Obama Obamacare OccupyWallStreet occupy wall street Open thread Paul Krugman Politics Presidential Election 2008 PUMA racism Republicans research Sarah Palin sexism Single Payer snark Social Security Supreme Court Terry Gross Texas Tim Geithner unemployment Wall Street WikiLeaks women
  • Archives

  • History

    August 2019
    S M T W T F S
    « Jul    
     123
    45678910
    11121314151617
    18192021222324
    25262728293031
  • RSS Paul Krugman: Conscience of a Liberal

  • The Confluence

    The Confluence

  • RSS Suburban Guerrilla

  • RSS Ian Welsh

    • Week-end Wrap – Political Economy – August 18, 2019
      Week-end Wrap – Political Economy – August 18, 2019 by Tony Wikrent Economics Action Group, North Carolina Democratic Party Progressive Caucus Strategic Political Economy Rebecca Gordon, How the U.S. Created the Central American Immigration Crisis [TomDispatch, via Naked Capitalism 8-16-19] How the Supreme Court Is Rebranding Corruption — Ciara Torres-Spelli […]
  • Top Posts

  • Advertisements

What tax cuts in NJ??

I followed a link from Eschaton to this Media Matters post on Governor Christie boo-hooing about how taxes in NJ aren’t covering state pension plans:

So, in the mid-1990s, Christine Whitman raided New Jersey’s pension fund to pay for tax cuts. Critics warned that doing so would cause massive problems for the state’s budget — and nailed the timing of those problems with remarkable accuracy. And now, the media is full of stories suggesting New Jersey’s pension system is the cause of the state’s budget shortfall — without mentioning Whitman’s role in causing it to happen. (The Washington Post, which reported on Whitman’s role at the time and which frequently reports on current pension/budget issues, last mentioned Whitman’s diversion of funds from the pension system on December 20, 2005.)

Take another look at that comment from Bill O’Reilly:

Many states cannot pay health and pension benefits because the tax revenue is not nearly enough to cover expenses.

You’ve probably seen dozens of statements like that lately. It should be clear by now — though it isn’t from most news reports — just how disingenuous this is, at least as far as New Jersey is concerned. Let’s review: A Republican governor of New Jersey reduced payments to the state pension system so she could cut taxes. Critics warned doing so would cause significant budget shortfalls in 2010. 2010 rolled around, and — surprise! — so did budget shortfalls. And now those shortfalls are used by New Jersey’s current Republican governor (along with many in the media) to justify cutting pensions (while again cutting taxes.)

Basically, conservatives have staged an end-run around having a public debate over cutting pensions in order to pay for tax cuts. Rather than making the argument that tax cuts are more important than pensions, they just went ahead and cut taxes, raiding the pension system in the process, then waited 15 years for predictable — and predicted — deficits, which they now point to as evidence that the pension system is unsustainably generous. And they’ve done it with the help of countless news organizations that fall for this shell game.

Wait a minute, wait a minute.  There were tax cuts in NJ??  How come I never heard about it?  Since around 2003, my property tax bill went up by about 40% and has stayed stubbornly stuck between ridiculous and outrageous.  The mortgage on this modest little townhouse would be pretty reasonable if it weren’t for the damn property tax that weighs it down.  Then there’s the association fee that is supposed to cover everything that the township doesn’t cover because my development is considered to have “private roads”.  How conveeeeenient.  So, I pay sky-high property taxes (my mother gets dizzy when I tell her how much) AND I still have to pay for snow removal and trash hauling and, and, and.

So, where has the money been going?  After all, this is the densest state in the union (in more ways than one) and there are a lot of people here paying through the nose to live with the abysmal traffic, shortage of public transportation, high ticket prices on NJTransit, long lines for everything and irritable neighbors.

Oh, yes, I forgot.  Governor Christie is going to bail out the developers of a white elephant mall in the Meadowlands called Xanadu.  Like NJ needs another mall.

Teachers or developers?  Pensions or public assistance for the rich?

We know the answer to this.

Advertisements