Johnson Calls for End to Billions in Corporate Welfare Granted by Trenton and Demands Action on Foreclosure Crisis
Democrat Jim Johnson: With New Jersey Leading the Nation in Foreclosures, Trenton’s Massive Corporate Giveaway Must Be Undone.
(Montclair, NJ) – Today, former U.S. Treasury Under Secretary and Democratic gubernatorial candidate Jim Johnson announced that he would, as governor, take immediate action to end excessive tax giveaways granted to big corporations, and focus on how to help New Jerseyans who are suffering from the foreclosure crisis to stay in their homes.
Reports have shown that more than 1 in 600 New Jersey homeowners experienced some sort of foreclosure activity in November – leading the Garden State to have the worst foreclosure crisis in the nation.
Meanwhile, it was recently revealed that Governor Christie and Democrat lawmakers in Trenton approved more than $7 billion in corporate welfare since 2010 – one of the largest corporate tax giveaways in history.
“The news out of Trenton would be comical if it weren’t so tragic,” said Johnson. “Last month, we saw home foreclosures soar. But instead of addressing the crisis, Trenton finds billions of dollars in tax benefits to shower upon big corporations – with little or no prospect for job creation.”
“The scheme to throw big money at big corporations isn’t just the doing of Republicans; Democratic party leaders have their fingerprints on this as well,” continued Johnson. “When Trenton hands tax breaks to big corporations and the wealthy, struggling families across New Jersey are losing their homes – and losing whatever faith they had left in a state government that is supposed to work forthem.”
“It’s shameful, and when I’m governor, it’s going to stop,” said Johnson. “I’ll fight to end those corporate tax giveaways. Instead, state funds should be used to grant relief to families squeezed by the vise of high property taxes and their mortgages.”
Analysts say that corporate tax giveaways make New Jersey’s structural deficits even worse, and will make it even more difficult for the state to assist homeowners facing foreclosure.
Budgets written by Governor Christie and state Democratic leaders have underfunded the state property tax relief fund for years. Johnson said that home ownership stabilizes families, strengthens communities, and provides the foundation for a healthy economy – while state-sponsored corporate subsidies do not.
“While Trenton insiders ended the legislative session by arguing over the Governor’s right to line his pockets with book profits, more families enter the holidays concerned about the roof over their heads,” said Johnson. “Enough already.”
A former federal prosecutor, Johnson, 55, served as chair of the Brennan Center for seven years. He plans to formally announce his campaign for governor early next year.