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The numbers quoted are for the month of December 2007. I would not draw big conclusions based on one month's data. I suggest you take a look at the numbers for the 2nd half of 2007. But something really needs to happen.

"The single item that got my attention the most was fuel tax, "motor fuels tax revenue was 33 percent under budget."  I don't know the structure of this tax, but how the heck do things like fuel tax drop by 33%?????"

That is an error in the Bloomberg article. Follow the hyperlink in the article (or this one) and you'll see that fuel tax was 5.4% under budget. It is a flat tax per gallon (14.5c, if I am not mistaken). By the way, the NJ fuel tax is the lowest in the nation (and no doubt way lower than dwot's Canada).

However, the low fuel tax is about the only low tax in NJ. In all other tax categories, NJ is a leader. Overall, NJ tops the nation in personal tax, and is #2 in business tax.

All these taxes are driving businesses and rich residents away. That is a big part of the problem. In addition, NJ has taken on way too many obligations:
 - state and local governments are bloated
 - people in NJ love home rule: every intersection is its own township with its own school district, bureaucrats, and police force
 - too much money has been borrowed in the past
 - benefits for workers at all levels are unusually high
 - the NJ supreme court forces the tax payers to contribute massive amounts of money to urban schools
 - pension obligations have been neglected.

I am not sure how to fix this mess. Severe cutting (way more than Corzine has proposed so far) must happen. In particular, the long-term obligations must be renegotiated. And businesses must get a break.

PS. I am a NJ resident looking to move out of the state long term. 

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