Dueling tax proposals unveiled in Trenton

TRENTON, N.J. - May 10, 2010

New Jersey Gov. Chris Christie unveiled a package of 33 bills to cap state spending in order to reduce property taxes on Monday.

Among the package of 33 bills Gov. Christie is proposing is a constitutional amendment that would cap local property tax hikes to no more than 2.5% without voter approval.

Increases for public employees like police, firefighters and teachers would also be capped at 2.5% annually.

Christie also wants to raise the retirement age for those workers from 62 to 65, while also giving towns the ability to get rid of civil service rules.

He said it will "Unleash mayors from the restrictions of an antiquated civil service system," and it will "allow them to manage their workforce professionally."

"Finally we have declared war on, I believe, some of the push-button issues that mayors and governing bodies have been crying for reform over the years," said Bill Dressel of the NJ League of Municipalities.

Bill Lavin, the head of the NJ Firefighters Mutual Benevolent Association, disagrees.

"It's really a bizarre situation to have a governor who is trying to undermine the working class," said Lavin.

Meanwhile Democratic leaders proposed raising income taxes on the state's approximately 16,000 millionaires. They say that would generate $630 million that could be used to restore senior property tax rebates and prescription drug benefits.

Christie called it another "one year fix" he won't go for.

"No matter how they send it to me, it's going back, it's going back with a veto on it. We are not raising taxes in the state of New Jersey this year."

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