BODY POLITIC

DEMOCRATS ARGUE ABOUT WHICH TAX TO RAISE

While most New Jersey residents thought that all of the fireworks were at the Shore this weekend, there was a pretty good show going on in Trenton. In a very rare request, Governor Jon Corzine called a special session of the State Legislature on July 4- normally a holiday but also four days after the state budget was due. To almost no one’s surprise, nothing was resolved and some political intrigue surrounds the impasse.

There is a major rift among the Trenton Democrats and no one is sure how this one will play out. Assembly Speaker Joseph Roberts is openly defying the Governor, a fellow Democrat on raising the sales tax. He has challenged Corzine to give him the names of those legislators that support the proposed increase from 6% to 7% of the sales tax, and promised a bill would be posted within 24 hours if Corzine has the votes. Since no bill is pending, the Speaker knows his troops are solidly in his corner opposing the tax.

There is no doubt that Assembly Democrats are afraid of the fallout of raising the sales tax. It took over a decade to regain control of the Legislature, and it appears that rank and file Democrats do not want that piece of history repeating itself. Instead of raising the sales tax, Roberts and his legislators want to raise the income tax on the wealthiest New Jersey residents to fund their spending habits.

But what is the difference of raising the income tax versus the sales tax? Apparently, the Democrats are playing to their base supporters while figuring that the income tax affects fewer residents and they weren’t going to get the rich votes anyway. Where does this leave Corzine and Roberts going forward? Such a challenge early in his administration cannot please our new Governor, but Roberts rightly figures that losing the Assembly is far worse than ticking off the Governor.

This test of resolve threatens to drag on. However, the residents of our state are so jaded in regards to government and the legislative abuse that there probably won’t be a huge outcry to get a budget deal done. This budget battle does not seem likely to produce any winners or losers, just another chapter in the colorful world of Trenton, where politics trumps fiscal responsibility every time.