April 07, 2006

Responsible Government Gets High Marks from Bond Rating Agencies

New Jersey Governor Jon Corzine has taken a lot of heat in recent weeks for his budget proposal that included major spending cuts and increases in the state's sales and cigarette taxes, coupled with a surcharge for the corporate income tax and an extra sales tax on luxury automobiles. Corzine also indicated that the state may not be able to fully fund expanded property tax rebates enacted two years ago. Even if these changes are enacted, all agree that property tax reform will be a major issue once the budget has passed.

Democrats and Republicans alike have distanced themselves from Corzine's proposals. Few legislators want to be put in the position of raising taxes during this seemingly never ending era of anti-tax feelings.

Turns out that bond rating agencies like responsible government that doesn't just pass tax cuts on whim. All three bond rating agencies (Standard and Poor's, Moody's Investor Service, and Fitch Ratings) have given Corzine's tax hiking budget the thumbs up. For more on this interesting story click here.

Parts of this post were originally published in CTJ's Tax Digest, a weekly email that highlights state and federal tax trends across the country. If you'd like to subscribe to the digest send an email to: ctj@ctj.org


Post a Comment

<< Home