By Matt Rooney | The Save Jersey Blog
We found out earlier today that New Jersey’s June revenues were 6.3% higher than they were in June 2012, Save Jerseyans; we also set a new monthly record for state income tax collections in the Garden State (which were up 12.4%). Sales tax collections rose 3.7%.
“The latest revenue update reflects our state’s improved job creation numbers, particularly in the private sector, and the confidence which people have in New Jersey’s economy;” opined Asm. Declan O’Scanlon. “Income tax and sales tax collections are correlated to the sustained job creation we have seen and the increased confidence by consumers. People who have a steady job contribute to our economic growth and send a positive message to businesses throughout the state.”
But wait just a minute… we need to slow down for our liberal friends in the audience….
If taxes didn’t go up (as they’ve demanded since Governor Chris Christie took office), then how the hell did the state generate MORE revenue? Let alone a record amount of revenue?
Answer: economic activity drives revenue, not tax increases. Higher taxes clearly don’t equate to higher revenues. More general consumption, business expansion and private investment does equate to higher revenues. Could it be any simpler?
With that in mind, imagine for a moment how much more money New Jersey would’ve taken in this June had Governor Christie’s tax cut been adopted by the Democrat legislature. Higher taxes continue to drive residents and business owners out of the state; lower taxes would keep them here to spend, invest, and expand their taxable liability at home.
Add in real spending cuts and further pension reforms and whoola! We’d suddenly transform into one of the healthiest states in the Union instead of a ticking fiscal time bomb.
Common sense! But we know it’s anything but common, so let’s make it contagious and share this post with a liberal friend who needs to have his or her eyes opened before it’s too late for all of us who want to live here without going broke.
Conservatives keep losing elections because they have positions on social issues that are stuck in the 50s.