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ATLANTIC HIGHLANDS HERALD |
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Recent public statements by Senator Codey and other lawmaker make it clear that they just do not get it. They do not get it that there are many people in dire financial straights who need more than a stabilization of property taxes. They fail to understand the actual problem with the Property Tax. Here is an example of what does not sink in. I received a call from a 79 year old widow to thank me for my letters to the editor in which I oppose the Property Tax. She has been in her home for 51 years and would like to live out her days there. She has income of $21,000 a year. Her property taxes are $5,500. That is over 26% of her income. And since taxes will be going up several hundred dollars in August, that percent will be increasing. She is desperate. Is it not obvious here on how legislators do not get it? These same lawmakers are quoted in news reports speaking of the unlikely possibility of property taxes going down. What is this woman and others in the same circumstance to do? Their situation demonstrates that the Property Tax is inherently skewed against low, no and middle income tax payers. Moderating its increases can never address that inequity. Senator Codey is also quoted as warning, “Under true property tax reform, some are going to pay less and some are going to pay more.” And??? Is that supposed to shut people up or disqualify radical changes needed now in how we collect taxes? And notice how the Property Tax is assumed to continue? He doesn’t get it. In N.J., the income tax rate on $500,000 in income is 9%. So, even if all these advocates of blaming spending as the culprit for high property taxes were able to cut this woman’s tax bill in half (impossible and will never happen), she would still be paying 13% of her income in taxes; that is a rate 50% higher than the $500,000 taxpayer. Is this fair? Is this right? Clearly, until politicians and taxpayer groups get their thinking straight, realizing ability to pay is the issue, there is no hope for those hoping for a solution to oppressive property taxes. Unless we get rid of the Property Tax completely, we will never have a just system for funding government services. John C. Hendrickson |
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