Perth Amboy evening news., 1921-04-04
FACING STATE INCOME TAX.

Whether the people of New Jersey realize II
or not, they are rapidly approaching the time
when they will have to pay a state income tax
in addition to the federal income tax which has
Just been gotten out of the way for another year.
For a long time New Jersey was one of the very
few states in the Union that had no state debt.
The makers of our state constitution wisely in
serted a clause which prohibited the creation
of a state debt of more than 800, 900 without
the consent of the people and the people were
not inclined to let the legislators pile up debt
for every within that arose. New Jerseys policy
has always been to pay as you go.
But in the last few years the state has not
been going fast enough to suit some of the cit
liens. The state highway system was adopted,
but even that was provided for in the beginning
through a direct state tax so that no bond issue
was necessary. Then came the proposition to
construct a vehicular tunnel under the Hudson
river between New York and Jersey City. Such
a tunnel, of course, is mainly for the benefit
of New York so as to make the metropolis In
dependent OF the ferries. But Hudson county
saw a big boom in real estate at their end of
the tunnel should one be built so Hudson coun-
ty became enthusiastic for 1t.
It was realized. however. that the southern
part Of the state would never stand for such an
expense SO in order to win the support of South
Jersey a proposition to build a bridge across the
Delaware river from Camden to Philadelphia
was tackled on to the tunnel scheme. OF course.
the bridge across the Delaware will be mainly
for the benefit Of Philadelphians just as the
tunnel is mainly for the benefit of New Workers,
but New Jersey was ~inveigled into favoring both
projects.
Dr 49, hrtIoa will cost millions OF
dollars. The figure fixed was s,oo0.o 0o. but
this was ONLY to deceive the people. 1t was well
known that these two projects would cost near
err 500, 900, 900 than $4,000, 900. but as the first
figure would hardly be passed by the people the
amount was fixed low. it being well understood
that once these projects were started and $751;
100000 spent on them the people would put up
the rest, no matter what it was so as not TO
waste what they had already spent.
Thus New Jerseys first state debt of any size
xessfe apuut. 1t was necessary to issue ponds
for $3.50 Oo,0 900 and the people swallowed the
bait, hook and all, and the bond issue was au-
thorized. 1t is significant. however, that the
state was first committed to these projects be-
fore there was any idea OF what they would
cost. The legislature voted to join with New
York and Pennsylvania in constructing the tuh-
mel and bridge without any consent OF the Peo-
PIE. When the time came to provide the funds
therefore, the people had no choice except be-
tween a bond issue or a state tax. the same
scheme is being used now to sew up the state
In the development of the port of New York
The legislature has agreed to join with the
state Of New York in the harbor development
the cost is to be taken care OF later.
But the $4,000. 900 bond issue was not all
that was put across by the legislature last year.
There was an additional bond issue of $~12,00o.-
: 600 for soldiers bonuses. This the people also
approved, and rightly, by a referendum vote.
Thus New Jersey last year created a state debt
|. II. $40. 1000 900.
~aving once done a thing 1t is so easy to do
a NE AN. With a record of $40,0o0.oo0 In the
CITY A;r state debt created by the act of last
Halrature. the present legislature goes