ATR President Grover Norquist sent a letter to the New Jersey Legislature today in advance of next week's vote on the state budget. While much of Gov. Chris Christie's budget proposal is beneficial for taxpayers, most notably that it is $1.5 billion smaller than its predecessor, it does include some tax increases that must be removed.

In his letter to lawmakers, Grover writes about the good:

Much about this budget is to be applauded. It is $1.5 billion smaller than its predecessor. It includes a serious and necessary reduction in state aid to local governments. When coupled with the governor’s proposed constitutional amendment to curb the growth in property taxes, this will encourage local governments to begin to live within their means, just as taxpayers must.

The budget also allows Corzine-era tax increases to expire, and avoids further income tax hikes on high earners. These “progressive” levies hit small business owners especially hard, exacerbating New Jersey’s unemployment problem. Gov. Christie’s important veto of the millionaire’s tax and legislative Republicans’ principled stand in support of that veto will do much to reverse the population outflow that has plagued the state to the tune of nearly 419,000 residents lost between 1999 and 2008.

And the bad:

But some tax increases are still present in this budget and must be removed. The budget lifts a cap on the tax assessment on hospital revenue and increases the tax on ambulatory care facilities. This $45 million problem can be remedied by inserting offsetting tax cuts elsewhere in the budget. Until it is made revenue neutral, the tax increases in the budget package violate the Taxpayer Protection Pledge.Pledge signers and other friends of taxpayers in the legislature should work to remove these and any other tax increases in the budget, or offset them with equal or greater tax cuts.

To be sure, Chris Christie has been a stalwart advocate of the taxpayers, ranging from issues like public employee unions, education, and government spending. There are a few wrinkles in his budget that need ironed out, lest a vote for it be a violation of the Taxpayer Protection Pledge.

To read the entire letter, see below. For a PDF copy, click here.

June 25, 2010

New Jersey House

New Jersey Senate

Dear Legislator:

As a vote on the state budget approaches, I urge you to take steps to remove unnecessary tax increases from the final package. While much about Gov. Christie’s budget is good – namely a reduction in state aid to schools and localities – it does appear to include some under-the-radar tax hikes. Now is certainly not the time for “revenue enhancements,” but for a readjustment in the size of government at all levels. Any increase in taxes is a losing proposition for New Jersey families.

Much about this budget is to be applauded. It is $1.5 billion smaller than its predecessor. It includes a serious and necessary reduction in state aid to local governments. When coupled with the governor’s proposed constitutional amendment to curb the growth in property taxes, this will encourage local governments to begin to live within their means, just as taxpayers must.

The budget also allows Corzine-era tax increases to expire, and avoids further income tax hikes on high earners. These “progressive” levies hit small business owners especially hard, exacerbating New Jersey’s unemployment problem. Gov. Christie’s important veto of the millionaire’s tax and legislative Republicans’ principled stand in support of that veto will do much to reverse the population outflow that has plagued the state to the tune of nearly 419,000 residents lost between 1999 and 2008.

But some tax increases are still present in this budget and must be removed. The budget lifts a cap on the tax assessment on hospital revenue and increases the tax on ambulatory care facilities. This $45 million problem can be remedied by inserting offsetting tax cuts elsewhere in the budget. Until it is made revenue neutral, the tax increases in the budget package violate the Taxpayer Protection Pledge.Pledge signers and other friends of taxpayers in the legislature should work to remove these and any other tax increases in the budget, or offset them with equal or greater tax cuts.

New Jerseyhas certainly made serious progress in the wake of Jon Corzine’s fiscal incompetence. I urge you to pass a budget that eschews all tax increases, continuing the good work of the Christie Administration to decrease the size of government at all levels in New Jersey.

Onward,

Grover Norquist

Posted by Joshua Culling on Friday, June 25, 2010 3:31 PM EDT

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