TOMS RIVER-This week Lt. Governor Kim Guadagno unveiled an immediate property tax relief proposal which promises tax cuts for middle class families.
Guadagno called her tax relief program a property tax ‘circuit breaker’ by capping a homeowner’s property tax bill to a percentage of their household income, but campaign rival Joe Rullo today said that her plan will short circuit because it relies on an audit of state finances that has neither yet been conducted nor is guaranteed to free up the $1.5 billion necessary to make it work.
“Like a circuit breaker for electricity, which automatically stops the flow of electricity after exceeding a safe capacity, the property tax ‘circuit breaker’ kicks in if the school portion of a homeowner’s property tax liability exceeds 5% of their yearly household income,” Guadagno said. “The homeowner will receive a direct credit on their tax bill for any amount exceeding the 5% threshold. Depending on the school district, average savings under this plan would be $1,000 annually.”
“The administration of Christie and Guadagno has missed revenue projections for years,” Rullo said. Rullo said the plan is nothing more than typical baseless Trenton posturing and smoke and mirrors that voters have grown weary of. Rullo said Guadagno’s “circuit breaker” plan, like most other plans that promised tax relief for New Jersey residents is bound to short circuit an already overloaded breaker box.
Rullo said the plan relies on too much on an audit that hasn’t yet been conducted and will probably not turn up the $1.5 billion needed to support the plan, adding that gimmicks such as the Lt. Governor’s “Circuit Breaker” plan are what have driven New Jersey to its current state of affairs.
Instead of addressing the major problems in New Jersey headon, Jack Ciattarelli said the plan is dangerous and irresponsible.
“The Lt. Governor’s so-called plan is disappointing and akin to rearranging deck chairs on the Titanic. Proposing a $1.5 billion property tax plan by saying it will be paid for with undetermined savings and assumed revenue growth is both dangerous and irresponsible,” Ciattarelli said. “This kind of proposal is a continuation of the failed economic and fiscal policies of the last 7+ years that have led to 11 credit downgrades, the highest property taxes in the country, and a record number of people fleeing the state.”
Ciattarelli said few hardworking Jersey residents would actually benefit if her plan was to go forward.
“The Lt. governor’s plan is also flawed in that it provides zero tax relief to many middle-class families. Based on her own projections, a family where a public school teacher is married to a police officer would be considered ‘too wealthy’ to benefit.” he added.