Time to stop the gimmicks, start saving real tax dollars
By: Brian Bergen
Your Turn
Guest columnist
..... New Jersey politicians love sending you checks.
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They love holding press conferences about them. They love putting program names on them. And they especially love reminding you who sent them.
..... But here's a question that may make people uncomfortable: Are the people of New Jersey actually ready for lower taxes?
..... Because many of the state's most popular "tax relief" programs aren't rally tax relief at all. They are simply the government taking your money first and then sending a portion of it back later, usually with a press release attached.
Why we should repeal ANCHIR and Stay NJ
..... That's why I recently introduced legislation to change the conversation. One bill repeals the ANCHOR and Stay NJ property tax rebate programs, which together cost billions but only return a fraction of what taxpayers already paid. Another proposal would use the resulting savings to eliminate tolls on major highways like the New Jersey Turnpike, Garden State Parkway and Atlantic City Expressway.
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Combined with cutting wasteful spending in the state budget, these changes could save roughly $5 billion enough to close the state's projected $3 billion structural deficit. The remaining $2 billion could eliminate tolls entirely or be sued to lower other taxes like the sales tax or income tax.
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In other words, permanent relief instead of temporary rebate checks.
..... Simple right?
..... Maybe not.
.....
There's an old retail story that offers a useful warning, In 2012, JC Penney tried something bold. Instead of running endless sales and coupons, the company announced it would switch to "everyday Low Prices." No gimmicks. No prohibitions. Just lower prices all the time.
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From a purely economic standpoint, the strategy made perfect sense. Why inflate prices only to mark them down later? why play games with customers?
..... Consumers hated it.
..... Sales collapsed almost immediately. shoppers didn't want everyday low prices. They wanted the feeling of getting a deal. A $120 sweater marked down from $200 felt like a bargain, even if the same sweater simply priced at $100 every day would have actually been cheaper.
..... Customs preferred the illusion of a discount over the reality of a lower price.
..... Government programs often work the same way.
..... Programs like ANCHOR and StayNJ are essentially the public policy version of coupons., the state taxes tridents heavily, keeps most of the money, and then sends a portion back with a program name attached. Politicians celebrate the check, hold a press conference, and declare victory.
..... But malign the alternative
.....Instead of taxing you an extra 41,200 and sending you a $1,000 rebate check months later, what if the state simply didn't take the extra $1,200 in the first place?
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No forms to fill out.
..... No eligibility requirements.
..... No waiting for a check in the mail.
..... Just lower taxes from the start.
..... That is the idea behind my proposal: Stop building complicated rebate programs and instead reduce the cost of government so taxpayers can keep more of their own money.
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Yet I recognize something uncomfortable. People may actually prefer the rebate checks.
..... The checks feel tangible. It feels like a benefit. It arrives with a program name and the promise that government is helping you.
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Permanent tax reductions, by contrast, are quieter. They don't arrive in the mail, and they don't come with a ribbon tied around them.
..... But they leave more money in your pocket every single day.
New Jersey faces a choice:
High taxes or cost-cutting?
..... New Jersey now faces a clear choice. We can continue the cycle of high taxes followed by government abate programs, or we can finally address the problem at its source by lowing the cost of government and letting residents keep more of what they earn.
..... The first approach creates headlines and rebate checks. The second creates lasting affordability.
..... The question is whether New jersey residents are ready for it.
..... Because real tax relief doesn't come in the mail once a year. It shows up in every paycheck, every grocery bill, every commute, and every property tax payment.
..... The real question for our state is simple: Do we want the rebate check or do we want the lower taxes.
.... Assemblyman Brain Bergan, a Republican, represents New Jersey's 26th Legislative District.