Seems like NJ is ranked 2nd to Illinois for states with the most debt [1]. Not coincidentally, NJ has the highest property taxes of any state, and IL has the 2nd highest [2].
It's a rough spot, but I don't think there's any tax policy that could prevent that sort of outcome when you're dealing with such a high debt burden.
NJ/CT/IL have $50k debt per taxpayer, and the next highest state is HI at $31k per taxpayer. And I assume those are understated amounts due to lack of laws requiring governments to perform proper calculation of present value of liabilities for deferred compensation.
The only way that works out for the average individual is if the economic growth in those places outpaces the alternatives to make up for all that debt, but I think there's a slim chance of that.
It's a rough spot, but I don't think there's any tax policy that could prevent that sort of outcome when you're dealing with such a high debt burden.
[1] - https://www.forbes.com/sites/andrewdepietro/2020/11/23/state...
[2] https://www.illinoispolicy.org/illinois-again-ranks-no-2-in-...