Home > Issues & Legislation > Steve On the Issues > Taxes
Taxes
Rothman At Work For Northern New Jersey
June 6, 2006- Rothman Amendment to Stop the Privatization of Tax Collection Passes
February 13, 2006- Rothman Presents New Jersey Transit with $3.6 Million for Long-Awaited Northern Branch
December 23, 2005- Congress Renews Rothman's Secure Our Schools Program
New Jersey has one of the highest costs of living and highest tax burdens in the nation. In fact, New Jerseyans pay about 10.4% of their incomes in state and local taxes. As a New Jersey homeowner myself, I know that property taxes are too high and place financial strain on the many hardworking Americans who live in our state.
Securing Federal Dollars to Ease Property Tax Burden
As our federal income tax burdens have fallen, the amount of state and local taxes have increased. To many people, it may feel like what the federal government gives with one hand, the state government takes away with the other. As a Federal Representative, I do not have jurisdiction over state and local property taxes, but I have done everything I can to secure as many federal dollars as possible for our area for roads, schools, hospitals and other important projects. From 2001 through 2005, I have helped secure more than $950,000,000 in federal dollars for local projects in Northern New Jersey, which has gone toward improving roads, rails, hospitals, schools, police departments, fire departments, etc. It is my hope that every federal dollar I bring in for a local project is a dollar that the state or local government will not have to collect from property tax payers.
Tax Breaks for Working Families Have Widespread Benefits
I believe that targeted tax relief can help working families who are financially struggling. The Earned Income Tax Credit (EITC) is one of the most effective tools to help lower income workers make ends meet. The EITC is a refundable tax credit that reduces the tax burden on lower income workers, supplements wages, and provides a work incentive. The EITC also helps boost the local economy through purchases at supermarkets, department stores, etc.
In addition, tax credits for health care costs, education, and childcare expenses can further ease some of the financial hardships that working families face. Targeted tax relief also provides incentives for Americans to achieve financial goals that will have widespread benefits. For instance, tax relief to offset health care costs, such as through flexible savings accounts and pre-tax exemptions for health care premiums, helps Americans afford health insurance, which decreases government costs associated with caring for people who are uninsured. Additionally, tax credits provided for energy-efficient automobiles or appliances encourage families to make energy-conscious decisions that conserve our limited natural resources.
Finally, tax credits for education costs and student loans help parents struggling to provide a good education for their children, while also creating a more educated workforce and enlightened population.
Tax Relief for Small Business Owners Can Benefit Employees
Small businesses create more than half of all new jobs. We must reduce the burden on small business owners, so that they can expand their operations, employ more workers, pay those workers appropriately, and provide health and child care benefits to their employees. Targeted tax relief for small businesses not only enables employers to offer these benefits to their employees, but also supports those workers who decide to start their own businesses.
In this struggling economy, more and more corporations are downsizing and companies are moving their jobs off-shore. This reorganization can have many negative effects, such as job loss. However, the determined American spirit has brought out the best—as hardworking men and women who lost their jobs as a result of outsourcing start their own businesses to support their families. Our tax structure should support their entrepreneurship.
Fiscally Responsible Tax Relief
Tax relief must be structured in a financially responsible manner that does not contribute to our growing deficit and national debt. I do not believe that corporations who move American jobs overseas should receive one cent of tax relief—money that comes out of the pockets of the same taxpaying Americans who may have lost their jobs due to outsourcing. Nor do I believe that providing tax relief to the wealthiest Americans, at the expense of our nation’s interests, is good fiscal policy.
Using “PAYGO” to Prioritize Working Families
Our children should not have to pay for their fiscal irresponsibility; instead, our legacy to the next generation should be that the government can provide the domestic programs needed by its people, while maintaining a balanced budget. During the 1990s, when our country last had a budget surplus, the government implemented a fiscal tool called Pay-As-You-Go (PAYGO). This tool mandated that every new loss of revenue had to be accompanied by a corresponding spending cut to keep the budget balanced. However, PAYGO was allowed to expire in 2002 by the Republican Congressional leadership. It is only through the use of PAYGO that government can make the tough fiscal decisions needed to rebalance the budget. President Bush only advocates using PAYGO for costs related to discretionary Federal spending on government programs, but not to reign in the trillions lost in Federal revenue as a result of the tax cuts that disproportionately benefit the wealthiest 1% of Americans—Americans earning more than $400,000 per year, with an average income of $1,000,000. In order to create a balanced budget, PAYGO must be applied to every penny, including tax cuts.
Standing Up For You
Our nation is facing very tough fiscal times, but I pledge to continue to work with my colleagues in the Congress and government to support spending plans that will enable our country to pay down our national debt, while continuing to fund important priorities and ease the tax burden on all Americans, particularly those in my home state of New Jersey.
Posted March 23, 2006
 | Issues |
| Steve's Legislation |
| Committee on Appropriations |
| Currently on the House Floor |
| Search Legislation |
| Issue & Legislative Links |