As the New Jersey gubernatorial race heats up, taxes have been a frequent topic of debate. Republican frontrunners Lt. Gov. Kim Guadagno and state Assemblyman Jack Ciattarelli have sparred about the best way to lower property taxes, as well as whether to repeal the controversial gas tax hike.
Guadagno’s plan would place a limit on homeowners’ school portion of their property tax bill: 5 percent of household income. If the amount exceeds that limit, taxpayers would receive up to a $3,000 credit. Meanwhile, Ciattarelli plans to lower property taxes by revamping the formula for funding schools, reducing funding to urban districts and increasing funding to suburban areas.
Ciattarelli’s plan also includes an income tax increase for individuals earning more than $750,000 and couples earning more than $1 million. For small business owners filing their taxes as pass-through entities—and therefore paying business taxes at the individual rate—a tax hike like this would be a hard hit.
As for the 23-cent gas tax hike, while both were against it, Guadagno says she wouldn’t repeal it, while Ciattarelli says he would. Meanwhile, gas tax resentment is playing a part in some of the state’s primary races as well, such as the race between William Hayden and state Sen. Steve Oroho. Republican Hayden’s campaign slogan is “Remember the Gas Tax.”
