In a sentence, Save Jerseyans?
Governor-elect Phil Murphy will raise taxes and then blame a federal GOP tax CUT for it.
Yes, you read that correctly!
Let’s fill in the Murphy first term timeline (which builds on the recent commentary of our friend, Dan Cirucci):
(1) Run for office in 2017 promising everyone everything ($75 billion in promises throughout Election 2017)
(2) Immediately after winning, discover a fiscal crisis of which your previously-reckless campaign pledges took no account (see: Murphy’s recent letter to Chris Christie)
(3) In 2018? Begin the process of raising taxes on the Middle Class through a combination of new methods (including a higher gas tax, new fees, etc.)
(4) Blame the Republican federal tax cut — which will still benefit 80%+ of New Jerseyans but which tempered the SALT deduction — for the pain
I’ve pointed out that this dude was a fraud from Day #1, Save Jerseyans, something Murphy’s biggest supporters in the media could only bring themselves to admit AFTER the gubernatorial election was over.
We’ve already got America’s weakest pension system, and an “underfunded” education formula, and yet our incoming Goldman Sachs Democrat governor said he can spend $75 billion more annually on these priorities and others with just $1.3 billion in new revenue.
Given that a millionaire’s tax (netting, at most, $600M) and a legalized pot tax (probably less than that) are the largest proposed revenue streams? The Middle Class were NEVER going to be immune from the pain. It was a fantasy designed to win an election. He either needs to break most of his campaign promises OR raise taxes/fees on a lot of people who aren’t “rich.”
What we didn’t know at the time of the election was that the final GOP tax reform package would cap the popular property tax/state income state deduction at $10,000, resulting in a handful of wealthier, itemizing New Jerseyans with huge property tax burdens (well above the state average of around $8,500) missing out on tax relief.
The easy solution? Treat the root causes of New Jersey’s property tax pain like the school funding formula, of course, but start by ameliorating the pain through the elimination of the $10,000 cap on our state’s income tax SALT deduction as proposed by Republican state Senator Joe Pennacchio of Morris County. Yup; in case you missed it, many of the N.J. Democrats presently complaining about the new $10k federal cap VOTED for a $10,000 state cap! It’s unreal.
But, of course, Phil Murphy isn’t looking for solutions, folks. He’s looking for someone to blame. A scapegoat/whipping boy/straw man to shift the blame when, inevitably, he’s forced to find awful new ways to fund his expensive agenda. Remember: states can’t print money like the feds! Murphy needs to tax, cut, or borrow to balance his budgets.
So we can expect THIS to continue…
.@RepTomMacArthur & the House GOP have shown where their true loyalties lay — not with their constituents but with President Trump and their wealthy contributors. When phased in, 83% of tax benefits will go to top 1%. #GOPTaxScam in one word: Shameful.
— Phil Murphy (@PhilMurphy) December 19, 2017
But we should NOT expect a property tax relief plan out of Trenton anytime soon.
Don’t say your old pal Matt didn’t warn you! Again. And the worst part….
If Trump’s tax plan remains unpopular due to the media distortions? Murphy wins politically.
If the Trump cuts work? And the economy continues to roar? Murphy wins when N.J. tax collections RISE.
It’s insidious.
(BTW – If you haven’t already, check out this tax cut calculator to get a rough idea of what you can expect to save. It isn’t perfect since every taxpayer’s case is circumstantial, but I’ve spoken to VERY few average New Jerseyans who will pay more going forward!)
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