Reforms in New Jersey Long Overdue
New Jersey residents are taxed more as a percentage of income than residents of any other state according to this Tax Foundation report. The report is even more indicting than it appears because income of New Jersey residents is among the highest of the fifty states and despite the huge amount of tax revenue generated, the government of New Jersey is plagued with spending problems. Tax revenue, as high as it is, is insufficient to pay for expenditures.
Why does New Jersey have such difficulties controling spending? A blog entry titled Sign the Pension and Health Benefits Reform Act of 2008 clues us in to what the problem is. The New Jersey state legislature passed a bill known as the Pension and Health Benefits Reform Act of 2008. Governor's Corzine's signature would make it law. Unfortunately he has not signed the bill even though the bill was enacted in June of this year. The Act curbs some overly generous benefits granted to teachers and other government employees. The costly effect of delay is illustrated by the fact that newly hired workers can be grandfathered into the old system. This guarantees posterity burdens they should not have to bear.
The measures specified by the Pension and Health Benefits Reform Act of 2008 are mild yet Corzine is unable to summon the political courage legislators found. The New Jersey Chamber of Commerce has urged some further reforms that are very reasonable. They include raising the retirement age to 65 and making lifetime benefits more like those of the private sector. As private sector workers pay for an ever more wasteful state government, making them the most highly taxed citizens in the nation, the gap between their retirement packages and those of New Jersey government employees continues to widen. The discrepency between benefits available to New Jersey government employees and their private sector counter parts mocks standards of reasonable fairness. And a stolid, uncaring Governor Corzine stands passively by and does nothing but seek even higher taxes.
Why does New Jersey have such difficulties controling spending? A blog entry titled Sign the Pension and Health Benefits Reform Act of 2008 clues us in to what the problem is. The New Jersey state legislature passed a bill known as the Pension and Health Benefits Reform Act of 2008. Governor's Corzine's signature would make it law. Unfortunately he has not signed the bill even though the bill was enacted in June of this year. The Act curbs some overly generous benefits granted to teachers and other government employees. The costly effect of delay is illustrated by the fact that newly hired workers can be grandfathered into the old system. This guarantees posterity burdens they should not have to bear.
The measures specified by the Pension and Health Benefits Reform Act of 2008 are mild yet Corzine is unable to summon the political courage legislators found. The New Jersey Chamber of Commerce has urged some further reforms that are very reasonable. They include raising the retirement age to 65 and making lifetime benefits more like those of the private sector. As private sector workers pay for an ever more wasteful state government, making them the most highly taxed citizens in the nation, the gap between their retirement packages and those of New Jersey government employees continues to widen. The discrepency between benefits available to New Jersey government employees and their private sector counter parts mocks standards of reasonable fairness. And a stolid, uncaring Governor Corzine stands passively by and does nothing but seek even higher taxes.
Labels: Government Policies
posted by Paul Williamson at
6:58 AM
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