Corzine wises up on the anti-job tax

In the State of the State speech, Jon Corzine admitted the 2.5% development tax to subsidize low income housing was a mistake that drove jobs away from New Jersey. This brainstorm of a new tax was created after the state realized that it wasn’t bringing in tax revenue from residential developers due to the housing slump, caused in part by these taxes. So rather than admit he was wrong, Jon signed into law a new tax that would penalize commercial developers, driving more jobs away.

From the AC Press story today:

He directed the Council on Affordable Housing to be as flexible as possible with the towns that filed about 240 affordable housing plans by the Dec. 31 deadline, and he suspended a controversial 2.5 percent fee on new development that would pay for affordable housing. Corzine simultaneously exempted from the fee plans that were being developed before it was approved in June. Lawmakers, listening to aggrieved constituents, had filed a number of bills to suspend or alter the fee since September. But Sierra Club Executive Director Jeff Tittel warned that eliminating the fee might increase lawsuits by builders, who could argue a town is not fulfilling its affordable housing obligation.

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