Codey,
Sires: Scratch plan to cut property tax
Top legislative leaders say
raising income levy isn't the way
Tuesday, May 03, 2005 • BY TOM HESTER •
Star-Ledger Staff
A new proposal to slash school taxes in
half by raising the income tax on most residents was
declared dead on arrival yesterday by the two officials who
decide the future of all bills in the
Legislature.
Sponsors of the plan insisted yesterday
it is needed to solve the state's property tax crisis and
would help all but the richest New Jerseyans. But
Republicans roundly jeered it, and it was disowned by acting
Gov. Richard Codey, who is also Senate president, and by
Assembly Speaker Albio Sires.
"There is next to nothing in the way of
support for an income tax hike in the Assembly Democratic
caucus," said Sires (D-Hudson). "The bill is a non-starter
in the Democratic caucus. Not only won't I post this bill
for a vote, I will not even consider scheduling it for a
committee hearing."
Codey's spokeswoman, Kelly Heck, said,
"The governor recognizes that property taxes are a serious
problem, but he does not support raising income taxes as a
solution to the problem."
With the governor's chair up for grabs
and the 80-member Assembly facing re-election in November,
any talk of an income tax hike is considered taboo by most
candidates. Republican lawmakers and gubernatorial
candidates yesterday likened it to former Gov. Jim Florio's
$2.8 billion tax increase, which haunted Democrats for a
decade.
"Now that the Democrats are pushing a
$3.7 million tax hike on hard-working families as their so-
called solution to the property tax problem, let us debate
its merits," said Assembly Minority Leader Alex DeCroce
(R-Morris). "Let us find out if the people really want
higher income taxes."
Assemblyman Louis Manzo (D- Hudson), the
key sponsor of the plan, bristled at the opposition. "When
they say that, they are committing the people of New Jersey
to another year of property tax hikes," he said.
The plan would cut school taxes by $5.1
billion while raising the income tax by $3.7 billion.
Homeowner rebates, which totaled $1.4 billion last year,
would be eliminated.
"I believe this bill is the type of
legislation we need to look at as a starting point on the
impact of property taxes on the people of the state," said
Sen. Joseph Doria (D- Hudson), the upper-house sponsor. "We
know school taxes are the most regressive taxes, the
majority of people are having trouble maintaining their
homes and tenants have higher and higher rents."
Under the proposal, the state income tax
would be increased by amounts ranging from 0.38 percent for
people earning just over $30,000 to 1.49 percent for those
making more than $1 million. Sponsors say it would mean a
smaller net tax bite for 2.51 million wage earners, and that
only those who make more than $300,000 annually would lose
money.
The measure is strongly supported by the
politically powerful New Jersey Education Association, the
state teachers union, and the New Jersey Tenants
Organization. The NJEA is spending at least $300,000 to
promote the bill and warns Assembly candidates that their
positions on the idea will be considered when the union
makes campaign endorsements.
Sires yesterday attempted to jump-start
efforts for a constitutional convention to address property
taxes, saying it will be heard by an Assembly committee May
12. If approved, the full Assembly could vote on the
proposal by May 23.
But high-ranking senators from both
parties say it will not likely move in the upper house
before the June 30 summer recess, a delay that would all but
kill any chance of a referendum on the November ballot. Some
senators, including Codey (D-Essex), have expressed concern
that the bill to set up the convention would forbid it from
suggesting ways to cut local spending.
Heck said Codey "is awaiting the Assembly
action on the constitutional convention proposal and will
review it if and when it comes over to the Senate. He has
openly said that he feels spending should be included within
the parameters of the convention proposal."
© 2005 The Star-Ledger. Used by NJ.com with
permission.
|