Taxes are becoming an increasingly significant problem in NJ. Do we jump ship and go for the other side? A recent editorial in The Bergen Record by gubernatorial candidate Steve Lonegan set off some alarms when I read it1.
The general problem with the Republican tax model is that the businesses are supposed to contribute to the tax pool, and there seems to be a kind of either/or that is detrimental either way to the citizens of the state: The Republicans present two alternatives: If taxed, the businesses will flee the state, but if they don't, they will stay. Obviously the state gets no money out of that deal, and then the taxes continue to rise for the citizens no matter what the businesses decide to do. Yes, we need jobs in the state, but it is still a lose-lose situation for the people if the businesses get a free pass.
How much should we as a state sacrifice for the businesses to stay, as taxes will surely rise no matter if they flee or we dont tax them. This is where free-market economics (read: Deregulation, aka New Economic Theory, aka Lassez-Faire Capitalism) fails. It favors businesses (entities, organizations) over the people and public good. There is a limit to acceptable greed, but there is always the question of whether or not businesses would accept that ethic. What got us into this nationwide recession is sufficient evidence of that fact. To be too terrified of businesses leaving the state, doing everything we can for them to stay (even if they do not contribute) seems misguided. How much do we stand to gain if we dont tax them, and how much do we stand to lose if we do?
If the businesses aren't taxed, the people must pick up the slack, and they will get up and leave. If the businesses are taxed, they will do the same. How should we find the balance to help this state prosper? We need both, and we need both to contribute.
1) http://www.northjersey.com/opinion/lonegan_062309.html
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