Friday, January 12, 2007

Tax caps, reform, rebates and credits

We support Governor Corzine's idea to put a cap on property tax increases, not because its the best solution to New Jersey's property tax problems, but because it is at least a step in the right direction. We would put the cap at no more than 3% (instead of Corzine's 4%) and also put a cap on budget increases in the same amount.

But this still does not reform the property tax system in New Jersey. And the Democrats' proposals of credits and rebates doesn't help either.

We've said it before and we'll say it again now: Rebates are not reform. Raising state taxes to fund property tax rebates is not a property tax reform. If anything, its part of the problem because our counties, towns and school districts don't get the message that they must be fiscally responsible when the state doles out money to take some of the burden off the taxpayer. The only way to achieve true property tax reform is to reform those entities (i.e., municipalities, counties, school districts) who rely on property taxes for their revenue.

Remember: Rebates (or credits) are not reform.

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