Taxation division cuts would be mistake

One of New Jersey's contingency plans in the event that public unions do not accept pay cuts is to cut government services across-the-board through furloughs. Current plans call for the New Jersey Division of Taxation to be included in such cuts. Doing so would be like opening up fire hydrants during a drought … wholly absurd.

By reducing the number of cases being handled by tax auditors, investigators and collection agents, the state will collect less money. For every full-time equivalent position lost, the state may save $50,000- $100,000, but will be losing about $1 million in annual revenue.

As a certified public accountant (CPA) and tax attorney, I know that the Division of Taxation is already significantly understaffed. Simple appeals take more than a year to be heard due to such shortages. Case workers and managers are already overwhelmed as a result of previous budget cuts and early retirements.

When the tax collector is short of staff, two things happen. First, taxpayer rights and services go out the window. Staff is pressured to collect more per person. It becomes easier to record judgments and levy assets than it is to work out fair and reasonable payment plans. Second, less tax will be collected in the long run.

Our citizens deserve carefully managed budgetary cuts. Cutting employees or employee time at the Division of Taxation makes little sense. I call on the governor and the treasurer to restore the division to full staffing rather than risking our ability to fairly collect taxes in New Jersey.
E. Martin Davidoff
East Brunswick