New Jersey wasn’t always one of the highest-taxed states in America.
In fact, for much of its history, New Jersey operated without a state income tax at all.
That changed in 1976.
Governor Brendan Byrne pushed for New Jersey’s first state income tax, promising it was necessary to fund public education and provide property tax relief.
Many New Jerseyans opposed it, fearing that once Trenton gained the power to tax income, it would never stop.
Nearly 50 years later, New Jersey has:
📈 One of the highest property tax burdens in America.
📈 A state income tax.
📈 One of the highest corporate tax burdens in the country.
📈 Some of the highest costs of living in the nation.
Since then, there’s a pattern of which governors have presided over a steady expansion of New Jersey’s tax burden:
📈 Brendan Byrne (D) – Created the state income tax in 1976.
📈 Jim Florio (D) – Enacted one of the largest tax increases in state history, raising numerous taxes and fees.
📉 Christine Todd Whitman (R) – Cut income taxes by approximately 30% over several years and made tax relief a centerpiece of her administration.
📈 Jon Corzine (D) – Increased various taxes and fees while expanding state spending.
📉 Chris Christie (R) – Vetoed several proposed tax increases and restrained some spending growth.
📈 Phil Murphy (D) – Increased the top income tax rate on high earners, expanded various taxes and fees, and presided over substantial growth in state spending.
Knowing this, how are there any Democrats left in the state of New Jersey?
New Jersey residents today face some of the highest taxes, housing costs, utility costs, and overall living expenses in the United States.
Informed voters would never vote Democrat again.
⁉️Did you know⁉️
When the 16th Amendment was ratified in 1913, Americans were told the new federal income tax would primarily affect the wealthy.
The top tax rate was just 7%, and most working Americans paid little or nothing at all.
The argument was simple:
“Let the rich pay.”
But government has a habit of growing.
📈 Under Woodrow Wilson, the top rate jumped to 77% during World War I.
📉 It fell during the 1920s under Harding, Coolidge, and Hoover.
📈 Franklin Roosevelt raised it again, eventually reaching 94% during World War II.
📈 Under Eisenhower, the top rate remained above 90% for much of the 1950s.
📉 John F. Kennedy pushed for significant tax cuts that were enacted after his death.
📉 Ronald Reagan reduced the top rate from 70% to 28%.
📈 George H.W. Bush raised taxes.
📈 Bill Clinton raised them again.
📉 George W. Bush lowered rates.
📈 Barack Obama expanded the federal government’s reach through the Affordable Care Act, adding new taxes, mandates, and regulations that affected individuals, businesses, and healthcare markets.
📉 Donald Trump reduced rates through the Tax Cuts and Jobs Act.
But here’s what most Americans never stop to think about:
In 1913, there was no Social Security tax.
No Medicare tax.
No federal withholding from every paycheck.
No massive federal bureaucracy.
A worker in 1913 kept the overwhelming majority of what he earned.
Today, Americans pay federal income taxes, payroll taxes, state income taxes, property taxes, sales taxes, gas taxes, utility taxes, vehicle taxes, permit fees, and countless hidden taxes embedded in the cost of goods and services.
What started as a tax aimed at a small number of wealthy Americans eventually became a system that reaches into virtually every paycheck in the country.
The lesson isn’t about one party or one president.
It’s about a promise.
The income tax was sold as something that would only affect the wealthy. A century later, nearly every working American is paying into a system that never stops growing.
The most expensive words in government history may have been: “Don’t worry, it will only affect the rich.”