Greenwald: Christie Administration Must Be Ready to Account for Its $1.1 Billion in Tax & Fee Hikes on Middle-Class & Poor

(VOORHEES)--In the wake of Gov. Chris Christie endorsing a tax cut for millionaires, Assembly Budget Chairman Lou Greenwald on Monday said the administration must be ready to explain in detail the impact of the more than $1.1 billion in tax and fee increases Christie has proposed that target middle-class and poor New Jerseyans.

“A tax is a tax is a tax is a tax, and middle-class New Jersey families simply cannot afford Gov. Christie’s budget and the damage it will bring,” said Greenwald (D-Camden). “Gov. Christie’s tax increases will have wide-ranging negative impacts and we need a full explanation of the damage each one will do to our economy and our families.”

Greenwald said Treasurer Andrew P. Sidamon-Eristoff should be prepared - when he appears before the Assembly Budget Committee on Wednesday - to explain in detail each of Christie’s tax and fee hikes and the negative impact they will have on the middle-class, poor, the economy, job creation and key industries such as health care and education.

Wednesday’s committee hearing will begin at 10 a.m. in Committee Room 11 in the State House Annex. It will be streamed live at http://www.njleg.state.nj.us/media/live_audio.asp

“The governor’s budget so obviously favors the wealthy by taxing average New Jerseyans, and that is wrong for our families and our economy,” Greenwald said. “I expect the governor to protect the middle-class and poor with the same zeal he used to protect the wealthy.”

Christie on Thursday vetoed a Democratic plan to continue an income tax
surcharge for 16,000 millionaires to fund health care and property tax relief programs for more than 600,000 low-income senior and disabled residents.
Greenwald also noted Christie’s vow to veto any budget that includes a tax increase, even though Christie’s budget proposal includes at the very least $1.1 billion in tax and fee hikes, not including the still-indeterminate property tax and tuition hikes his budget would cause later this year and the recently approved 22 percent increase in NJ Transit fares.

“If Gov. Christie keeps these tax and fee hikes and to his vow, he’s going to have to veto his own budget,” Greenwald said. “We want to work with the governor to solve our budget problems, but we will not support the governor’s preference for millionaires over the middle-class and poor.”

Greenwald said he looked forward to bipartisan support for his request.

“We all know that we will not succeed in rebuilding our economy and making New Jersey affordable if we impose Gov. Christie’s endless tax increases,” Greenwald said. “As one of my Republican colleagues said just last week, tax increases like the ones proposed by Gov. Christie plant the seeds for more economic destruction and middle class pain.”

Greenwald said he wants detailed explanation and possible alternatives to Christie’s plans to:

• Eliminate Homestead Rebates in 2010, reduce rebates in 2011 and eliminate tenant rebates, totaling $848 million in lost property tax relief.
• Increasing income taxes on the working poor by $45 million by reducing the Earned Income Tax Credit.
• Raising the hospital assessment by $38.7 million.
• Raising the ambulatory care facility assessment by $6.5 million.
• Increasing co-payments for early intervention services for disabled children by $12 million.
• Increasing the amount of supplemental security income that developmentally disabled community care clients must pay to the state by $15.4 million.
• Increasing the number of recipients that will have to pay a co-payment for afterschool and summer programs in poor school districts by $5.3 million.
• Increasing health insurance premiums for working adults by $1.2 million.
• Prohibiting new Senior Freeze property tax relief applicants and providing no increase for current applicants, costing senior citizens $27.8 million.
• Imposing co-payments for medical day care and restricting eligibility to raise $21 million.
• Increasing business filing fees by $5 million.
• Reducing High Tech Tax Credits by $30 million.
• Reducing Film Production Tax Credits by $15 million.
• Increasing the Insurance Special Purpose Assessment by $20 million.

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For Release: May 26, 2010
Contact: Assemblyman Greenwald (856) 435-1247