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Property Tax Relief

I am glad to see that Senator Corzine is interested in property tax relief.  There is no doubt there can be more efficiencies in state government and corruption and patronage jobs cost NJ citizens millions of dollars in the past 10 years. However I think its important to go further.  Property tax is a regressive tax meaning that people with lower incomes pay a bigger  percentage of their incomes towards property tax, than those with higher incomes. In NJ the poorest 20% of homeowners pay 10% of their incomes on property taxes, while the richest 5% of homeowners pay only 2%. States need to collect taxes to provide services; but the fairest way to collect taxes is based on the ability to pay, which means those that earn more should pay a larger, not smaller, percentage. Despite inefficiencies most of NJ's taxes are needed and if there is going to be a desperately needed property tax cut, there must be a compensatory raise in taxes. The raise should be in income taxes which is a progressive tax. Last year raising the taxes of those families that earn over $500,000 a year, the top 1% of NJ's earners, was a good start in that direction. Even with that raise those families do not pay any more than similar families in New York and Pennsylvania. Property tax rates should go down for everyone and the income tax rate should go up 1/2 to 2% for families earning 200 to 500,000. This would not burdern those families and would give needed relief. Property owners generously fund NJ's excellent schools and it nearly breaks them. With raising the income tax of  higher earners the state could contribute considerably more to each district's education budget. The Abbot districts should not be scape goated as taking too much of the state's education money. Let us denounce that Republican divisive stance. All NJ's schools need more state funds which can be paid for with a raise in the income tax.
Joy Schulman Highland Park, NJ

by Anonymous Citizen on June 02 at 2:32 AM EST


If you look at Jon Corzine's plan, the rebates help increase progressivity.

Here's a PDF that explains some of the assumptions underlying the higher rebates.

by Matt Stoller on June 02 at 12:12 PM EST
[ Parent ]

Bravo Joy!!!!!!!!!

I agree 100%! And the raise in income tax would not have to be a very large one.

by Anonymous Citizen on September 26 at 7:19 PM EST
[ Parent ]


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