Monday
Jul252016

Hateful, emotion-driven politics doesn't solve problems

Look at these two photographs.  This is what our political discourse has turned into.  And it is certainly what the discussion of how to fund the Transportation Trust Fund (TTF) has turned into.

 

Everyone knows that the tax on gasoline is the principal way New Jersey funds road and bridge maintenance and repair.   It is a user tax charged to those who actually use the state's roads and bridges -- 30 percent of whom live outside New Jersey. 

 

The user tax on gasoline that New Jersey charges drivers who use the state's roads and bridges hasn't been raised since 1988.  That means that the price charged drivers in New Jersey hasn't even kept up with inflation.  If it was adjusted for inflation, the 14 1/2 cents still charged today would be 29 cents.

 

This represents a huge windfall for out-of-state drivers -- who in effect are being subsidized by New Jersey taxpayers. 

 

But instead of raising its tax on gasoline in line with inflation over the last 28 years, New Jersey put its road and bridge maintenance and repairs on a credit card -- using massive debt to fund its transportation infrastructure, while states like Pennsylvania raised their user tax on gasoline to 50 cents or more. Because New Jersey used so much debt, the first 10 1/2 cents of any gasoline tax increase will be needed just to pay the interest on that debt.

 

The Sussex County Freeholder Board recognized this and in November 2014 unanimously passed a resolution that supported finding a stable source of funding for the Transportation Trust Fund (TTF) before it ran out of money in July 2016.  They sent copies of that resolution to Senator Steve Oroho and to an organization lobbying to increase the state's tax on gasoline, which promptly posted Sussex County's resolution on its website.  This was in 2014!

 

The following year, Senator Steve Oroho was asked by the Republican caucus to begin negotiations aimed at getting the best deal before January 2018, when the Democrats are expected to take the Governor's office AND pad their current majorities in BOTH chambers of the Legislature.  That is now less than 18 months away and counting.  Once the Democrats take the Governor's office -- once the threat of a gubernatorial veto is removed -- the Democrats won't need a single Republican vote to pass ANY tax they want to pass in ANY amount on ANYONE or ANYTHING.

 

Senator Oroho got a deal that cut taxes for retirees, lower-income workers, and veterans; phased out taxes that inhibit job creation and inward investment; provided tax deductions for commuters and charities; prevented a property tax explosion; and ended the subsidy paid by New Jersey taxpayers in support of out-of-state drivers.  That deal also raised the user tax on gasoline that funds road and bridge maintenance for the first time since 1988. 

 

So a corporation based in Connecticut, owned by a larger corporation, based in California -- with offices in Los Angeles, New York, Stamford (CT), Houston, London, Hong Kong, Tokyo, Singapore, Beijing, Shanghai, Seoul, Sydney, Paris, Frankfurt, Luxembourg, Amsterdam, Dublin, and Dubai -- decided that it would be good for ratings if a radio station they owned in New Jersey (NJ 101.5) made this an issue.  Remember, higher ratings = a higher price the corporation can charge advertisers = more corporate profit.  And so the media campaign "against the gas tax" was born.

 

This corporation doesn't care about Senator Oroho's efforts to forge a tax cut compromise with the MAJORITY Democrats that will stem the outflow of capital from New Jersey and the outmigration of middle class retirees.  They don't care that New Jersey ranks 49 out of 50 states if you want to invest in a new or existing business.  The executives who run these companies don't live in New Jersey, why would they?  New Jersey is one of only two places in America with an Estate Tax AND an Inheritance Tax.  And with its high tax on retirement income, why would anyone retire here or stay here once they did retire? 

 

The status quo of 49th place is fine with the corporate bosses.  They don't care that New Jersey's roads and bridges are falling apart, because they don't use them.  They live in states or in foreign countries that DID allow their user's tax on gasoline to go up in accordance with the rate of inflation over the last 28 years.  They don't live in New Jersey, which still charges drivers the 1988 price of just 14 1/2 cents per gallon of gasoline to maintain and repair the state's roads and bridges.

 

But it didn't end with this corporation and its quest for more profits.  Locals got in on the act and, we have to sadly note that it was a local government official that Watchdog worked very closely with on the solar issue in 2015 who picked up where the corporation had left off. 

 

In 2015, Watchdog was accused of being Tom Walsh's attack blog, because we supported a resolution from the Andover Township committee that questioned the solar bailout passed earlier that year.  We can only suppose that Mr. Walsh expected the same level of support when his elected body passed a resolution, clarified by their words, condemning Senator Steve Oroho for supporting the compromise worked out by Governor Christie. 

 

Of course, we couldn't, because Senator Oroho did not support the compromise worked out by Governor Christie.  It appeared to us that the Andover resolution was simply a way for Walsh and others to exploit the circumstances Steve Oroho found himself in and to hurt him both personally and politically. That is the very definition of hate and we wanted no part of it.

 

Yesterday, in the New Jersey Herald, Tom Walsh offered his own "plan" to "fund road repairs."  He didn't offer any numbers to go with this plan.  Walsh doesn't explain how much something will save or raise in revenue or even the amount the TTF needs to fund road and bridge maintenance and repair. There is less math in Walsh's "plan" than he puts into a contracting estimate before Walsh, a painting contractor, signs a contract to paint a house.  In fact, Walsh's "plan" doesn't include a single calculation.

 

Too bad, because he does include a few good ideas.  Not original mind you, but ideas that others have had before but lacked the votes in the Legislature to pass.  Here's what Tom Walsh wrote:

 

"First, introduce a bill that makes New Jersey a right to work state, while abolishing prevailing wage." 

 

Well Tom, you know Assemblywoman Gail Phoebus.  You served together on the Andover Township committee.  You trust her.  Ask her to propose the bill. Watchdog will give you $1,000 cash if it gets passed this year; $900 if it gets passed the year after, and so on.  That gives you ten years.  You and Gail together can work those legislators, most of them Democrats.  Report back to us on your progress.

 

As for the prevailing wage, and maybe you don't understand this, but there you'll have to go to Congress.  You see, Congress ties $1.6 billion in transportation funding for New Jersey to a set of requirements and one of those requirements is the prevailing wage.  But hey, go to Congressman Garrett or Congressman Frelinghuysen and see how far you get.  These aren't new ideas.  But hey, go for it, if for no other reason than to learn how tough it is.   

 

"Second, put the state on the same 2 percent diet that the state requires of municipalities, counties and schools."

 

We totally agree.  You will get no argument from us or from Senator Oroho or Assemblywoman Phoebus or Assemblyman Space.  In fact, Steve Oroho is a sponsor of legislation to do exactly what you want to do.  Unfortunately, he's had a real tough time getting his colleagues to agree to it.

 

So here is the difficult part... how?  Do you intend to cull the Democrat caucus?  If not, then you are going to have to find a way to convince them.  Please, we're all ears, tell us how? 

 

And mind you, Oroho is no slack when it comes to convincing his colleagues of his position.  He is the only Republican among the ten top legislators who have had success getting their legislation signed into law.  Every business/ job creation tax cut we've enjoyed since 2010 has been sold by Steve Oroho.  

 

"Third, the state must return the energy tax receipts that were stolen by the state; returning half of it and calling it 'state aid.' The energy tax receipts should be enough for municipalities to repair their own roads and give taxpayers modest relief."

 

Actually, you praised Senator Oroho for his work on this back when you were running for re-election.  It was in the Herald.  You said, and we quote:  "To continue to fight for the energy tax receipts to be returned to the municipalities, which in turn will stabilize taxes. I have been in contact with Sen. Steve Oroho, and with his commitment and hard work, we have seen this bill pass through the Assembly; also, thanks to Assemblywoman Alison McHose and Assemblyman Parker Space."

 

Your choice of words is a concern to us.  You write "stolen" but couldn't that be just as well said of you when you raise property taxes?  That you have "stolen" the money?  For the record, you did not report this "theft" to the county prosecutor, did you?  Wasn't it, in fact, something the Governor did that you accepted on the advice of your township attorney? 

 

And when you write, "the energy tax receipts should be enough for municipalities to repair their own roads," why haven't you made the calculations necessary to determine if they will, in fact, be enough?   You wouldn't guess on how much paint was required on a job and how much to charge for it, would you?  The people's business deserves the same attention.  

 

"Fourth, include campaign finance reform; making it harder for unions to control politicians."

 

Tom, if you study this subject to any extent at all, you will find that corporations control far more politicians than do unions.  Ever hear of Citizens United?  It is another top-down controlled lobby group like Americans for Prosperity -- astroturf instead of real grassroots -- and it won a case before the United States Supreme Court that said that the billionaires who fund them can give whatever they wanted to because it was covered under the First Amendment as "Speech".

 

Now Tom, if you can get the United States Supreme Court to reverse Citizens United, we'll throw you a party -- with all the beer and whiskey you can drink. But Tom, we don't know how we get this done from Sussex County.  Maybe a good start is another one of your resolutions?  Pass one and send it to the Court.  There are 89,055 local governments in the United States.  Little bit by little bit?

 

"Fifth, demand Senator Sarlo (co-sponsor on the Sarlo-Oroho Tax Plan) to recuse himself of any transportation tax plan because he is the COO of one of the largest road construction companies in the state."

 

Remember that the Democrat caucus appointed Senator Sarlo to represent them in fashioning a compromise.  Sarlo is also the chairman of the Senate Budget Committee through which any such legislation would have to flow. 

 

But hey, you are preaching to the choir.  We actually brought Senate President Steve Sweeney himself before the State Ethics Committee because of a very similar conflict that we perceived -- and we were given an earful by the Ethics chair. 

 

You see Tom, in the real world, demanding that Sarlo recuse himself would end any hope of a compromise.  No tax cuts for retirees, none for lower-income workers and veterans; no phase out of the estate tax that inhibits job creation and inward investment; no tax deductions for commuters and charities; no preventing a property tax explosion; and no ending the subsidy paid by New Jersey taxpayers in support of out-of-state drivers. 

 

It might make you feel better, but pissing off a Budget committee chairman who is backed by a fat Democrat majority would get you just one thing... a gas tax ONLY in January 2018.  No offense Tom, but maybe you don't have it in you to be a statesman?

 

"Finally, appoint a review board to make sure that the transportation fund is being managed responsibly."

 

Again, we agree.  So does the compromise Steve Oroho fashioned, because while everyone  else was talking about doing this, Steve actually got it done and got Sarlo to put his name on it as part of the bill.

 

You wrap up with a few more statements worthy of consideration.  They are:

 

"We are told we need to pass this gas tax to fix our transportation needs. They could not manage the money we gave them. I am not about to give them more money to mismanage."

 

Actually Tom, successive administrations and legislatures failed to raise the price they charged drivers to maintain and repair roads and bridges in line with inflation.  Instead, they borrowed the money.  I guess they were afraid to hear from people like you and the Andover Township committee -- pissing and moaning.

 

"The people of New Jersey pay the highest property taxes in the country; including a sales tax, a state income tax, inheritance tax, estate tax, and various transportation tolls. We are taxed ad nauseam and the one relief we have gotten in the last eight years is that the price of gas has come down and now has become the low-hanging fruit."

 

Well Tom, Senator Oroho is trying to change that.  He's trying to move New Jersey up the ladder from 49th place.  He's trying to prevent property taxes from exploding, he wants to phase out the estate tax, end the tax on retirement income, cut taxes for lower-income workers and veterans, get tax deductions for commuters and charities, and end the subsidy to out-of-state  drivers.  But you don't want any of that, do you?

 

Unfortunately, through your resolution, the Andover Township committee is on record as supporting the status quo.  Leave everything the way it is, just allow us to keep paying 1988 prices for road and bridge maintenance and repair! 

 

And you will have your 1988 price... at least a while.  But if Steve Oroho fails to get his compromise and the tax cuts that are part of it, it won't be for his lack of trying.  It will be because people like you and the Andover Township committee were filled with bile and fought him out of personal spite, simply for the joy of it.  And if he fails, what you will be killing are the tax cuts -- not the gas tax.

 

In January 2018, when the Democrats control the works, you'll have whatever gas tax they choose for you.  And no tax cuts.

 

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Reader Comments (8)

Stop describing a dysfunctional government - we want it fixed not served up as an excuse to tax more. Here we have Oroho's tax policy disguised as a road program married to Democrat Senator Sarlo who is a major operator in the construction business. This sorry situation doesn't support a shakedown of the taxpayer.

Committeeman Walsh's plan seeks efficient and proper use of tax burdening. It doesn't throw money at the problem. It doesn't have deceptive staggered implementation dates that disguise tax increases. It doesn't cloak a tax policy as a solution to roadcare. It makes sense and deserves attention, especially Point 6 (although it should be coupled with management changes).

We all know how NJ Government works - it doesn't work. It taxes and spends. And the Oroho/Sarlo plan, well... true to form... taxes and spends.

Fix the DOT and there will be a reduction in taxation.

July 25, 2016 | Unregistered CommenterH Roseff

One again, Harvey, you are screaming at the wrong people. Why don't you take your plan and call Senator Oroho and meet with him? Meet with the other legislators too. You are very close to Gail Phoebus, meet with her. Take your ideas to them and fashion some legislation. Ask them if you can speak with DOT. If your ideas are any good, if they stand up to scrutiny, you will do something of value. Facebook and comments on websites are as masturbation is to sex. Try sex. Sex is better.

July 25, 2016 | Unregistered CommenterAndy Bradshaw

So Bill let me get this straight. You are saying if rape is inevitable, sit back and enjoy it?

July 25, 2016 | Unregistered CommenterTom walsh

Bill ,we have never had any ill will towards senator Oroho in fact I myself have always held him in the highest regard . We as a committee simply disagree with this tax proposal as it stands.our government works better when we disagree,argue, talk,and debate . My fellow committeeman jack Burke was attacked for no reason but that we disagreed with the senator.we don't think the senator represented us the way we would have liked ,period ,nothing personal.its time our energy to goes to solving this issue and not attacking people who disagree with Steve.i hope we start taking the high road.

July 25, 2016 | Unregistered CommenterTom walsh

Sorry about that unfortunate endorsement of rape.

July 25, 2016 | Unregistered CommenterTom Walsh

According to someone who served with him, he threatens people with physical violence.

July 25, 2016 | Unregistered Commenterwalsh is a nutcase

I don't know who is posting under my name but you are very slick and stop lt! And if you don't have the guts to post under your name don't post at all.

July 25, 2016 | Unregistered CommenterTom walsh

He hates Steve Oroho and he hated Gary Chiusano even more. He told everyone about it. He blamed them for something Christie did. An angry man.

July 25, 2016 | Unregistered CommenterWalsh is full of it
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