Deficit reduction requires the opposite of progressive proposals; Assemblywoman Fantasia points to UPenn analysis
NEW JERSEY – New Jersey Policy Perspective released a report Wednesday calling for higher taxes to address the state’s budget deficit, Assemblywoman Dawn Fantasia (R-Sussex) said.
These increases would impact low-income residents through higher sales taxes, adding to the state’s affordability crisis. The proposal primarily targets businesses, potentially placing New Jersey at a competitive disadvantage compared to lower-tax states like Pennsylvania and Delaware, according to Assemblywoman Dawn Fantasia.
Assemblywoman Dawn Fantasia said this is why America thinks Democrats were on the wrong track in the presidential election, and pointed toward an April study by the University of Pennsylvania’s Wharton School of Business on reducing the federal deficit.
“New Jersey Policy Perspective and the Democrats who are promoting higher taxes and increased spending need more than a hard look in the mirror after this last election,” said Fantasia. “They need to take an Economics 101 class. Higher taxes don’t help – they drain the social surplus and create deadweight loss.”
The current budget deficit for fiscal year 2025 is projected to be $2.1 billion. The 2024 deficit was $3.2 billion, up from the projected $1.5 billion – the same amount as pork spending that year. Multi-billion dollar deficits are expected to continue for the next several years, according to Rowan University’s Sweeney Center for Public Policy, said Fantasia.
The Wharton School’s study found that the least effective of three plans to reduce the federal deficit was to raise taxes, which would also slow economic growth. The most effective deficit reduction plan was to reduce spending and marginally raise taxes, and the best for economic growth with deficit reduction was to cut spending, Fantasia added.
“New Jersey keeps trying to tax and spend their way to prosperity. Economics doesn’t work that way,” Fantasia asserted. “Democrats have a spending problem and the people who live in New Jersey have a tax problem. Stop spending and lower taxes. It’s that simple. Especially when all of the unnecessary pork spending only helps Democrats and their friends.”
Pork spending increased by nearly 1600% from fiscal years 2020 to 2024, said Fantasia.
In each of Murphy’s budgets, pork has been a growing issue. In FY19, his first budget, pork increased by about $60 million to $98 million, in FY20, it was $89 million, in FY21, $126 million, in FY22, $425 million, and in FY23, it was $638 million. Altogether, pork spending was $2.9 billion in those years, and more than half was in the FY24 budget, said Fantasia
Pork spending was more than $720 million in fiscal year 2025, increasing the total to $3.6 billion with Murphy and Democrats in full control of state government, Fantasia added.
