Wednesday, February 07, 2007

The Ruse of Reform

The trumpets are blaring in Trenton. The so-called leaders of our state are congratulating themselves for a job well done. They have addressed the property tax issue in New Jersey.

One can only ask whether these people really believe themselves. If they do, they do not belong in Trenton. If they do not, they do not belong in Trenton. The corresponding question is whether the N.J. voter will continue their tendency to return these unscrupulous politicians to office in November? If the continual re-election of the Sharpe James and Wayne Bryants is any indication, sadly, the answer is yes. N.J. taxpayers keep getting what they vote for: Charlatans.

What has been overlooked by all sides in this vacuous effort is whether the property tax is a fair and equitable tax. It is not. It imputes ability to pay based on one’s neighbor’s ability (the so-called wealthy districts). It is structured so those with the least means pay at a rate of three times and more as those with the most. It cares not whether one has income or basic living needs met.

Here is an example of what Trenton deems fair: One taxpayer has a $50,000 income and a $6,000 tax bill. Another has $250,000 in income and a $12,000 tax bill. The first party pays 12% of their gross income in property taxes. The second pays 4.8% of income. The first has $44,000 left after paying property taxes, the second $238,000. Both will receive $1,200 in tax relief. But who really needs the relief here? According to Trenton, both. Common sense and fairness makes it clear our legislators have no sense of tax equity.

And there are others who would not stop at $250K. They think everyone, regardless of income level, deserves to receive relief. Relief from what? They claim it is unfair and unconstitutional. Fair? Where is the fairness in the property tax? There are many taxpayers who have far less than $50,000 in income who are even worse off. So why do those who are paying property taxes at one third the rate of those at the bottom deserve anything? They need to pay their fair share. We need to stop having the least able subsidize the most.

The scam of property tax relief will be ballyhooed by politicians and the media over the following month’s right up to the election. Regrettably, the demogoguery of telling voters a band aid is the equivalent of major surgery will work. At least long enough to get them two more years in Trenton. And N.J. will have allowed a truly historic opportunity to go by the boards.