Cut New Jersey Real Estate Property Taxes by 50 Percent

One way to get New Jersey's Economy going is to reduce the property taxes for every homeowner in New Jersey by 50 percent.

“Cut New Jersey Real Estate Property Taxes by 50% and Watch New Jersey’s Economy and Real Estate Grow to New Heights”

Take a New Jersey home owner who pays $12,000 annually or $1,000 per month in property taxes and multiply that by just 5,000 homeowners that would give you a grand total of $60,000,000 in annual property taxes or $5,000,000 per month in property taxes. Now let’s cut that figure in half. Instead of these 5,000 homeowners spending $60,000,000 annually or $5,000,000 per month in property taxes they would now only pay $30,000,000 annually or $2,500,000 per month in property taxes that result in huge savings for the homeowner. Each homeowner would pay $500 less per month towards his/her monthly property tax payment thus saving $6,000 per year, WOW. Simply put; New Jersey would have more money put back into their economy, and small businesses would have more capital to create more jobs, thus creating more tax revenue for the state and decreasing unemployment. Sounds like a win/win situation to me.

Let’s now look at it another way; by cutting property taxes by 50% housing becomes more affordable and brings more potential buyers along for the ride. Buyers can now borrow more money making it more affordable to own a home in New Jersey. Let me explain; if a buyer could borrow money today at 3.5% based on a thirty year fixed rate mortgage for every $1,000 they borrow it would cost them approximately $4.49. If we take the monthly property tax savings of $500 per month and divide that by the cost to borrow money at 3.5% or $4.49 per $1,000, the buyer can borrow $111,358 more making homeownership more affordable to more buyers.

We the people need to be more diligent and selective with our politicians, we the people have the power to reform a broken tax system and we the people need to make our voices heard loud and clear that we need less government and more innovation.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.


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