By Kevin Judge | July 23, 2018
I recently compared the July Budget in NJ to Einstein’s definition of crazy, doing the same thing over and over but expecting different results. For the umpteenth time in my lifetime, we were told that the solution to a budget crisis was to raise taxes. This time, it was to the tune of $2 billion in new revenue. I predicted that it would never be enough.
How quickly I was proven right. Senior Democrat State Senator Bob Smith has now proposed a new tax on water usage. NJ already has a surcharge on access to water services, but this additional tax will be based on usage. At 10 cents per 1,000 gallons, Smith says the average tax will be $32 per water bill.
If this passes, I have another prediction. No, make that two predictions.
1) The tax will be more than $32.
2) It won’t be long before they will try to increase the tax.
Smith claims that the money will go to repair the State’s deteriorating water infrastructure. Sounds like a good purpose, but in NJ we have a long history of diverting money dedicated for one purpose for something else the politicians would prefer. If the tax does bring in $150 million per year, as Smith forecasts, how confident should we be that the money will be used as promised?.
The state Highway Trust Fund is a prime example. We would not have needed the 23 cent increase in the state gas tax last year if the Fund had not been used to pay for state employee pensions. Money intended for the rail tunnel project, including money from a bond issue, was diverted to repair the Pulaski Skyway between Newark and Jersey City
The argument will be that this is a small amount for an important purpose. But when does it end? NJ has gone from a low tax state to second in tax burden to only the Socialist Republic of California. Mark Twain said progress is not as important as your direction.
This is the wrong direction. If we want to stop an exodus of taxpayers from the state, we need to think about how to lighten the tax burden not increase it.