New Jersey Policy Perspective: If It Ain’t Broke: New Jersey’s Income Tax Makes Dollars and Sense
ITEP Work in ActionMost people probably would agree that we need taxes at some level to pay for the things we want government to do. We could disagree on what to tax, how much and who—not to mention how best to use the money raised through taxes. But there is enough common ground for a reasoned discussion of such issues. There probably is little point in having an argument over whether taxes are “good” or “bad.” Those who would oversimplify matters to that extent are unlikely to bring many more over to their side. The reality is that taxes are a tool; like any tool they need to be used wisely.
That said, New Jersey’s tax structure is an unqualified mess. The state relies far too heavily on local property taxes, a levy based on the value of someone’s home and land and often unrelated to actual ability to pay. Attempts over the years to put the system into better balance have sometimes made progress. But they also have foundered on political rocks and other times been reversed in favor of short-term fixes with unfortunate longterm consequences.