Sunday, July 12, 2009

Jobs necessary for the survival New Jersey

It is costing us $100 million a day in stimulus interest. Unemployment has gone from 8.5% to over 10%.

The $29 million budget the Governor signed will not bring relief to an already suffering working class.

Unfunded pensions, health care benefits for retirees are costing every man women and child left in the state about $3800. With the new budget, we are using new debt to pay down the old debt.

A year from now, we will be looking to another increased budget, because the current budget does nothing to prepare for New Jersey’s future. How in the world, during a recession can you justify raising taxes on an already struggling working middle class?

New Jersey is already unaffordable to many of its citizens, and has caused many of them to flee the state. Friends, neighbors, relatives with the hope of something better across the state line.

The exodus from New Jersey began in 2002. At that time 23,000 more people moved out of the state than moved into it, increasing in 2006 72,000, escalating to 196,000 by the end of 2008. The dampening of the housing market in recent months, however, could lead some people to stay.

To some of the families I’ve talked to in the district, this budget will devastate them.

This recession had nothing to do with NJ’s economy; it's due to eight years of overspending that has brought us to where we are. Revenues averaged about 3%, but spending continued at an average of 7 to 9%.

Many jobs continue to leave New Jersey, taking residents with them. Thousands of jobs in the telecommunications industry are gone; New Jersey lost 8,400 high technology jobs between 1990 and 2005. Since 2003 the pharmaceutical industries have been relocating, and less than 14 percent of the country’s pharmaceutical jobs remain in New Jersey.

The loss of state resources, families, jobs are a direct results that contributed to the loss in the states economy, reducing consumer expenditures, employment, and state taxes.

To create jobs, as a state we need to lead if we want this economy brought back to an enviable status.

Let’s use some of that the $18 billion dollar stimulus not included in the budget to create permanent jobs.

I propose as a start, the elimination of the 4% corporate tax, as an incentive to bring business back into New Jersey.

Throughout the state there are warehouses, buildings, industrial parks that are run down and abandoned, in areas such as Camden, Trenton, Newark, and South Plainfield.

Let’s tell business that we want them back, asking them to invest in these areas rather than building new facilities, give them a 20 year tax renewal option. The first 5 years there would be no property tax payments, ten years 35%, fifteen years 75%, and at the twentieth year it is open for renegotiation. Or a possible tax rotation plan where at year twenty it would go to 100%, and the following year would start at 25, 50, 75, and 100%.

They would not be penalized for property improvements; they would be given tax incentives for going “green”. The recycling of water, solar energy, generation of electricity are some areas business could be rewarded for their innovativeness.

Any corporations relocating to these areas would be required to hire at least 30% of their workforce from within their respective area, thereby helping local employment. Any employee hires over 500, corporations would receive tax incentives or credits.

By relocating to these areas, it would create construction jobs, help the housing market, and bring revenue into surrounding towns from the money that will be spent by the ensuing labor force.

By reducing unemployment, creating employer incentives, eliminating bureaucratic red tape for business owners, all will have an immediate effect on increased revenue to New Jersey.

Although not perfect as specifics would be worked out, and unless critics have a better plan, it is a start. We need a plan to invite business back to New Jersey and give them a reason not to leave.

Increasing taxes to make up for lost revenue is detrimental to New Jersey’s economy. Cutting needed programs, and giving the working class less pocket money weakens our economy even more.

As good as they are intended to be, we can no longer afford to throw money away on open space, park projects, the study of cranberry bogs, when the people of this state don’t have the funds or the means to take advantage of them.

We will never balance a budget without financial prudence, jobs are essential to New Jersey’ future.

Joe Sinagra

NJ 18th District Assembly Candidate

1 comment:

Anonymous said...

Joe, stop with the garbage about "throwing money away on open space, parks, cranberry bogs" -- AS IF THAT'S THE PROBLEM! You harm your credibility. Those are small investments in things that help NJ retain desirability, property values, a farming & tourism industry, clean water sources, and much more. Instead focus on the BILLIONS overspending on pensions and post-retirement healthcare for state workers, the BILLIONS in giveaways to developers who often take far more in services and tax breaks than they deliver in long-term value, and the many other truly large pots of money. Focus your anti-spending ire at big buckets of dollars wasted, which doesn't truly expand the state's productive capacity over the long term. Your opponents in the '09 race will have their way with you if you don't.