NJ Democrats' StayNJ tax relief robs the poor to reward the rich: Assemblyman Brian Bergen

It seemed too good to be true.

Late in May, state legislative Democrats presented a controversial plan to provide seniors with $1.3 billion in property tax relief. This came after two decades of their raising every possible tax and making New Jersey the most unaffordable state to live in.

Don’t fall for it, as my colleagues in the Legislature did. They are promising something they cannot deliver. Even if they manage to keep the program running for a year or two, the cost of living will continue to rise.

When Assembly Speaker Craig Coughlin first proposed it, Gov. Phil Murphy said it would be an "administrative nightmare." He even threatened to shut down state government if Senate President Nick Scutari and Coughlin went ahead. Coughlin made only minor concessions to win Murphy over, despite objections from nearly every fiscal expert. Within a span of 34 days, it became law on June 30.

You may be wondering why a conservative like me wouldn’t just back any tax relief. For more than 20 years, Republicans in the state Legislature have been pushing for it. But as a conservative, I can’t back an illusion that puts the state’s finances out of whack.

It’s a bad deal from every perspective. That’s why both conservative and progressive voices are in opposition.

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Why redeploy revenues for top earners?

In principle, many seniors in New Jersey need relief, but that doesn’t apply to everyone over the age of 65. Just because you’ve turned 65 doesn’t mean you’ve entered a category that requires relief at the expense of others.

Under this plan, however, seniors can get the full benefit of $6,500 as a tax credit if their income is up to $500,000. For most, that’s retirement income, not a salary from a 9-to-5 job. Meanwhile, senior renters on Social Security receive an extra pittance of $250.

The fair-market rent for a two-bedroom apartment in New Jersey, according to the U.S. Department of Housing and Urban Development, is $1,628 a month. This means that many senior renters will get only an extra 1% of their annual rent, while rich homeowners may get up to 50% of their property tax costs. It's wrong and unfair.

I would support a tax break for businesses that create jobs or an income tax cut for those who reinvest in our economy when it cuts taxes they pay. But I can’t fathom a scheme that takes sales taxes collected at grocery stores and income taxes from the average family and essentially transfers that money to a senior who makes nearly a half-million a year.

New Jersey Policy Perspective released a report saying 41% of the total benefits under the original proposal would go to the top 20% of highest-income households in the state, while only 5% would go to the bottom 20% of households.

People are still leaving New Jersey

Part of the argument is that it will entice rich seniors to stay in New Jersey. But, in my opinion, that’s like expecting a car buyer to ask what the gas mileage is on a Ferrari. They don’t care, because they want a Ferrari. At that level, it won’t make a difference. It won't change the math behind why New Jersey is so expensive and why people are leaving.

The fact is that younger people are leaving. According to the most recent IRS data, more than half of those who have left New Jersey were between the ages of 26 and 44, while just 11.7% were 65 or older.

Ensuring full funding is not something Murphy, Coughlin or Scutari can guarantee, either. When it is finally put into place in 2026, only half of the costs of the first year will have been saved. On top of that, the budget they passed last week has a structural deficit of $2.7 billion. Like plans before it, this one will be cut or suspended when politicians want money for new favored causes. That was done by former Govs. Jon Corzine and Dick Codey.

Gimmicks like these need to stop.

Brian Bergen is a state assemblyman and was one of two lawmakers to vote against the StayNJ plan. He serves the 25th Legislative District, which includes portions of Morris and Passaic counties.

This article originally appeared on NorthJersey.com: StayNJ tax relief: Democrats rob the poor, reward the rich: Opinion