Fair Tax Campaign and the Fairness Alliance
Victory!
NJ Passes Property Tax Relief
On June 21, 2004 the NJ legislature passed the property tax relief plan long supported by NJCA! Read more about it in the news articles from June 22, 2004 listed to the right.
NJCA is working with the Fairness Alliance, bringing together scores of organizations concerned about the impact of the budget deficit. Together, we are building support for a plan to make NJ’s wealthiest residents pay their fair share, while reducing income tax burdens on the working poor. Our plan will:
- Prevent drastic cuts to needed services
- Raise the income tax rates on the wealthiest 2% of New Jersey Taxpayers
- Eliminate the income tax for those making under $25,000 a year
- Read the complete plan
You can help win a more equitable tax system and prevent draconian cuts to critical human services, like health care and education! Sign on to the Statement of Support (jump below to the Statement) for the Fairness Alliance plan for for common-sense budget and tax policies. Please return the signed statement to NJCA, by fax at 732/214-8385 or by email: fairtaxes@njcitizenaction.org.
Also, NJCA is mobilizing opposition to President Bush’s tax cut proposal and economic plan. President Bush's "economic growth" plan is a tax cut for millionaires that most economists agree will not effectively stimulate our weak economy or create jobs now. The Bush tax package would leave our government $2 trillion dollars poorer, at the same time that the State of New Jersey needs fiscal support from the federal government. NJCA is working with our national organization, USAction, to prevent the President’s plan from being adopted by Congress. To lend your voice to this separate effort, please sign the "Statement of Principles Regarding President Bush’s Tax Cut Proposal". You can send this statement of support together with the State campaign or separately, by fax at 732-214-8385 or by e-mail: fairtaxes@njcitizenaction.org.
NJ State Budget — Give Critical Human Needs a Voice
The Anti-Poverty Network of New Jersey (APN) needs your help to give critical human needs a voice in the state's budget process. State decision-makers have already begun the process of developing the state budget for 2006-2007, but most of the conversation has been about cuts. We need to get the message out that even in tight budget times, the state government must respond to basic human needs. See APN's mostcriticalneeds.org for areas requiring immediate state investment. And see how the Fairness Alliance graded Governor Corzine's Proposed Budget in the Fairness Alliance 2006 Budget Principles list and the Fairness Alliance on the Budget.
TAKE ACTION! Distribute the Most Critical Needs Flier to your members, service recipients, and anyone else who wants to have a voice in expressing the most important areas for state investment in human needs.
Congress Votes Against America’s Priorities
On February 1, 2006 the House of Representatives had a second chance to vote against the Republican Leadership's immoral budget cuts, but by a mere two votes (216–214), Congress voted in favor of the cuts, slashing vital incentives for America’s poor and middle class. The $40 billion cuts to health care, student loans, child support and child care will be used to fund billions of dollars in give-aways to wealthy special interests.
The house vote was extremely close with NJ’s representatives providing the deciding votes. Thirteen moderate Republicans including NJ Congressman Chris Smith (R–4) voted against the cuts. Read the details in this article from The Hill, and "Only Two Votes" (The Times, Trenton). Below you can read how close the votes were.
How New Jersey’s Congressional Delegation Voted On The Budget Reconciliation Bill:
Rep. Rob Andrews (D–1): No
Rep. Frank LoBiondo (R–2): Yes
Rep. Jim Saxton (R–3): Yes
Rep. Chris Smith (R–4): No
Rep. Scott Garrett (R–5): Yes
Rep. Frank Pallone (D–6): No
Rep. Mike Ferguson (R–7): Yes
Rep. Bill Pascrell (D–8): No
Rep. Steve Rothman (D–9): No
Rep. Donald Payne (D–10): No
Rep. Rodney Frelinghuysen (R–11): Yes
Rep. Rush Holt (D–12): No
13th Congressional District: Vacant
FOR YOUR REFERENCE — ARCHIVE OF SELECTED RESOURCES which NJCA provided prior to the vote and which still contain pertinent information:
Right before the 2005 winter holidays the House of Representatives passed a conference agreement slashing vital incentives for the poor and middle class. Shortly thereafter the Senate voted on a modified bill 51–50 in favor of the cuts. The budget bill will cut billions of dollars to vital programs like Medicaid, Student Loans, Child Support Enforcement, and TANF. Now the bill is back in the House for another vote with the Senate changes. The House of Representatives has one final opportunity to vote against the immoral budget bill which has been called a "Grinch Style Lump of Coal" for Americas poor. [FINAL VOTE of Febrary 1, 2006.]
FOR MORE INFORMATION visit: ACT Now, Center for Law and Social Policy, Center on Budget and Policy Priorities, and Coalition on Human Needs.
SELECTED NJCA ACTIONS: On January 23, 2006 New Jersey Citizen Action called on Representatives Saxton, LoBiondo, Ferguson, Frelinghuysen and Garrett to Vote No on the corrupt GOP Budget that will hurt hundreds of thousands of New Jerseyeans. NJCA also released a new report, How Cuts in Vital Services Now Before the House Will Hurt New Jersey, detailing the projected effects of the federal budget bill. Ev Liebman, NJCA Program Director, issued a Statement on the Impact of the Federal GOP Budget on NJ’s Seniors, Children, Students, Disabled, Poor and Low-Income Working Families. On December 14, 2005 NJCA released a report highlighting federal budget effects on New Jersey's most vulnerable citizens, during a demonstration in front of Congressman Jim Saxton's (R-3) Mt. Holly Office.
IN THE NEWS: NJCA's Executive Director Phyllis Salowe-Kaye: "We Are All Paying For Tax Cuts For The Rich" (Philadelphia Inquirer – January 31, 2006), "Federal Tax Cuts Leave State's At-Risk Residents With Less" (Asbury Park Press – January 29, 2006).
Fairness Alliance Plan
Recapturing The Windfall: Fairness Alliance State Income Tax Plan
Income Tax Rates
The top rate of the NJ Gross Income Tax is now 6.37%, charged on taxable family income over $150,000. The Fairness Alliance Plan would establish the following rates:
- 7.5% on family income between $300,000 and $400,000
- 8.5% on family income between $400,000 and $600,000
- 9.5% on family income between $600,000 and $800,000
- 10% on family income between $800,000 and $1 million
- 10.5% on family income over $1 million
This tax program would increase income tax revenues by $1.3 to $1.8 billion based on 2001 state revenue figures.
It would affect about 86,000 households, or 4% of all New Jersey taxpayers.
Income Tax Threshold
Currently, families making under $20,000 a year and single filers making under $10,000 are exempted from New Jersey state income tax. The Fairness Alliance Plan calls for:
- Raising to $30,000 the amount a family can earn without having to pay state income tax.
- Raising to $20,000 the amount an individual can earn without having to pay state income tax.
This plan would remove income tax liability for about 429,000 households now paying state income tax.
The cost to the state would be about $90 million, based on 2001 figures.
Fairness Alliance Statement of Support
How New Jersey faces up to a massive budget gap will determine the quality of life in our state, and the fairness and opportunity provided to our citizens. New Jersey needs a common-sense budget—and common-sense tax policies—that protect our communities and invest in our workers, students, seniors and families.
- Slashing education, health care and human services is NOT the answer. It robs people of their full potential and weakens the economy-hurting us all. Every penny the state spends in these areas provides a service or buys a product, helping to boost the economy.
- Reducing transportation funding, college assistance, arts funding, public safety and environmental protection is NOT the answer. It threatens the quality of our lives and undermines New Jersey’s ability to attract the good jobs people need to make a living and support their families.
- Raising property taxes and freezing broad based state taxes are NOT the answer. Cuts in school funding and aid to local governments only shift costs to homeowners and renters by hiking property taxes that hit lower- and middle-income New Jerseyans hardest. Higher college tuition and assorted fee increases just mean the tax increase for average New Jerseyans is hidden – it's still a tax increase.
- Continuing tax cuts for the wealthy is NOT the answer. The wealthiest New Jerseyans pay a LOWER percentage of their income in major state and local taxes than do middle- or lower-income New Jerseyans. New Jersey's tax system is upside down and backwards – and huge state and federal tax cuts make it worse by giving the wealthiest even more money. Instead, we need to cut state income taxes for the lowest-income New Jerseyans.
- Waiting is NOT the answer. Things are getting worse and there is no sign of an economic recovery. Available one-shot revenue options have been used up to fill budget holes the last two years. The Legislature and Governor must act now to create recurring streams of revenue.
It's Time To Invest In New Jersey's Families!
Instead of shifting spending to local communities through soaring property taxes and making harmful cuts in services and programs, the Governor and the Legislature should adopt a fair budget that would:
- Capture a portion of the federal tax windfall. Since the federal tax cuts took effect, people making $400,000 a year in New Jersey have saved nearly $8,000 over 3 years. Those making $700,000 have saved nearly $10,000 and those making over $1 million have saved more than $40,000. A modest temporary state income tax increase on the wealthiest families in New Jersey would help preserve vital services, prevent property taxes from soaring higher and help to undo the damage from lopsided state and federal tax cuts that help the wealthiest at everyone else’s expense. Affected taxpayers will still see a substantial cut in their overall tax bill while doing their fair share during these tough times.
- Tell the federal government to help states recover from the recession and September 11th. The Governor and Legislature should encourage Washington to increase federal payments for Medicaid and economic recovery. Congress is currently considering direct aid to states and localities to help them through current budget crises. We must work with our Congressional delegation to win enactment of this proposal.
- Ensure that municipalities and school districts get adequate funding to avoid further property tax hikes. Last year’s freeze resulted in an average 7% property tax hike across the state. Our communities cannot take that hit again. New Jersey already leads the nation in property taxes. We don’t need to widen that lead—we need fairer revenue alternatives.
Statement of Principles
The package of tax cuts proposed by President Bush is too costly and would do little to stimulate the weak economy and create jobs now. The tax cuts are far too large, poorly designed, and highly inequitable.
The new tax cuts jeopardize the nation's ability to meet its domestic and foreign responsibilities, threaten national and state fiscal stability and security both now and in future years, and inequitably distribute the benefits they provide.
In contrast to the Bush plan, any economic package must provide temporary, short-term stimulus that is fiscally responsible and equitable. Any such package should include aid to states to help respond to their fiscal crises, and should focus on people who will spend the money now, including those hard hit by the economic downturn.
Further, we need comprehensive prescription drug coverage and full funding of Medicaid for all families and individuals. We demand quality, affordable health care for all Americans, and not tax cuts for the wealthy.