The news we have all felt was confirmed by government data this past Friday: We are in the middle of an historic inflationary period in the U.S.
Inflation has jumped to the highest level in nearly 40 years, caused by supply chain disruptions, consumer demand and rising housing costs combined to fuel the strongest inflationary burst in a generation. The Consumer Price Index climbed by 6.8% in the year through November, the fastest pace since 1982. After stripping out food and fuel, inflation climbed by 4.9%.
The ability to pay the family bills and the effect inflation are having is at the top of a concerns for American families right now, according to the latest Monmouth University poll. About 3 in 10 Americans named either everyday bills (15%) or inflation specifically (14%) as the biggest concern facing their family right now. No matter which issue they identified as their top concern, 46% of respondents said federal government actions have hurt their top concern—rising 13 points since July.
With that as a backdrop, Rep. Josh Gottheimer released a plan this week to help New Jersey residents keep money in their pockets. Two of the four pillars are found in the House’s version of the Build Back Better (BBB) Act.
There are ones that affect everyone in the U.S., including lowering prescription drug costs and making childcare more affordable. Cutting these costs are steps that will put money back in the pockets of middle-class Americans that are sorely needed right now. Expats and lawmakers agree that the inability to find affordable childcare has been an issue in the current job market, resulting in a workforce shortage.
The North Jersey specific issue is the elimination of the state and local tax (SALT) cap. Under the one proposal being debated in the U.S. Senate, taxpayers making up to $400,000 would be able to deduct up to $80,000 in state and local income and property taxes. The $80,000 figure is included in the House-passed 10-year, $1.75 trillion social spending bill, but with no income limit. The average deduction in each of New Jersey’s 12 congressional districts exceeds the current $10,000 cap and the proposal would cut taxes for 96% of New Jerseyans.
Republicans, especially GOP gubernatorial nominee Jack Ciattarelli, deserve credit for bringing a renewed focus to these economic kitchen table issues. But their solutions to cut taxes and extract the mythical budget savings are not enough today. Tax fairness that finds a balance between allowing businesses to grow while paying at minimum the same rates as the Bergen County police officer and his wife who is a teacher while raising two kids is what the public wants.
The government investing money in programs—from infrastructure to education to healthcare—is what can ultimately reduce our tax bills in New Jersey. Those types of investments drive our economy.
Social issues are always going to divide Americans. But a clear economic plan that puts more money in the pockets of North Jersey residents while modernizing the way we live is a winning message for any candidate.
That is what the Build Back Better Act does. That is why we are calling for U.S. Senators to bring the legislation up for vote sooner rather than later and vote for its passage.
The SALT deduction is for wealthy people who are little affected by inflation so it is absurd for Democrats to support the elimination of the SALT cap as a means for helping the middle class. BBB is mostly a waste of money that will make inflation worse. When you find yourself in a hole, stop digging!! The root of the inflation disaster is government spending. Some was essential during the worst of the pandemic but government never knows when to stop. Once the economy did its natural and expected recovery, all the government money was pouring gasoline on a small, warm fire that is now a raging inferno. Stop “doing something” that isn’t essential.
OMG you have to be kidding me?! BBB cures all! with money we don’t have! the biggest socialist spending (aka welfare) since New Deal. NJ does not need BBB, it needs to stop these ridiculous public pensions. It needs to stop having over 600 school districts in a tiny state. It needs to do what corporate america would do, cut (other than police/fire) 10 to 20% of state employees and you would not even notice! and SALT , democrats are such hypocrites!!!!! You want to live in crap blue state with high salary then put your money where you mouth is, SALT is a tax CUT for wealthy. And i do agree the number (400k) for wealthy is too low for such a state. but….. NJ problems are self induced with waste, unions, corruption. Just bidding time til finding property in florida or arizona oops you lose the 5 digit taxes i’ve been paying
Government subsidizing child care and requiring ‘prevailing wages’ for all employees will not make ‘childcare more affordable’ as stated above…it will increase the cost for all childcare, just like they did to college education via student loans and increased requirements for schools to qualify for same. If this ever gets approved, look for child care costs to skyrocket.
Nothing about this “opinion ” is correct. Government doesnt “invest ” in anything. Gov has no money of its own. Only private people risking their own capital can be called investors. Gov SPENDS other people’s money. Money that the gov first has to take ( STEAL) from others by way of taxes whether the person wants the money taken away on not. If the gov of NJ and the editors of this sorry excuse for a news organisation want to make NJ more affordable for people of modest means, they would advocate for the immediate and permanent massive roll back and cutting of taxes at ALL levels of gov! THe reason why housing costs in NJ are so high is because of gov taxes, regulations and insurance requirements. The reason infrastructuture is so expensive in NJ is because of corrupt gov contracts, gov employee pension obligations. The reason the cost of living of quality of life is so bad in NJ is because of decades of gov waste and mismanagement. POliticians care ONLY about power and getting reelected so they have over spent and over borrowed and over-promised. The free market is constantly trying to make things more affordable and better and gov bureaucrats and politicians keep acting like parasites and preventing the free market from working.
As the previous commentator said correctly the ONLY cause of inflation is government debasement of the currency. The problems in NJ stem from decades of democratic , progressive control. The whole progressive an liberal agenda is colossal failure. Stop taxing and spending.
right on. Someone reading these ridiculous “opinions” actually has some sense. The editorts at NJ .com are clueless liberal idiots
These “opinion” writers are either clueless or completely ignorant of how government works, New Jersey and all other states must have balanced budgets, unlike the federal government. When you give money for childcare programs or any other program and call it “tax fairness” proves your ignorance. We have witnessed that all the so-called tax fairness programs have been absolute failures. Remember the sales tax, the casino tax, the income tax, the lottery tax? These taxes were supposed to lower our local taxes. Raise your hand if your local tax has been lowered. The only thing these programs did was to provide government employees fatter salaries, pensions, and benefits. NJ.Com should read their own news articles on government waste and corruption. Almost daily there are articles about government employees suing their respective government agency for alleged harassment, promotion denial, or other petty reasons. What happens? There is usually a settlement with no one claiming responsibility and the taxpayers pockets are emptied by hundreds of thousands of dollars. How about the recent article of the Paterson schools Superintendent who will be retiring with a yearly pension of $190,000 and lifetime benefits. Why did Governor Murphy and the legislature raise the budget by $5 BILLION and borrow $9 Billion when there was a huge surplus in last years budget? Has NJ.com kept a record of how many New Jersey politicians have been sent to jail? CUT SPENDING NOW!!