Sales tax not keeping pace
Which of the major taxes in New Jersey has had the most revenue growth over the past 10 years? The corporate tax, up 118 percent - or 11.8 percent a year for the past decade, according to the latest New Jersey Policy Perspective newsletter.
The state income tax is a close second, with revenue increasing 110 percent over that same period. The sales tax, recently increased from 6 percent to 7 percent, has been a laggard, only siphoning an additional 59 percent into state coffers.
The newsletter noted the need, as did NJPP's recent report on the sale tax, to make it "more productive" by eliminating the exemptions of many goods and services, and to consistently tax similar items.
It noted, for instance, that baseball tickets are taxed but a round of golf is not. Snickers bars are taxed but Kit Kats are not. And laundry detergent is taxed but dry cleaning is not.
Gov. Corzine apparently took the NJPP sales tax report, which came out the week before the budget was passed, to heart. He not only increased the sales tax, but extended it to many new goods and services. Give Corzine and the Legislature another year or two, and sales tax revenue growth may no longer be the poor sister. And don't be surprised if Kit Kats are finally taxed.
The state income tax is a close second, with revenue increasing 110 percent over that same period. The sales tax, recently increased from 6 percent to 7 percent, has been a laggard, only siphoning an additional 59 percent into state coffers.
The newsletter noted the need, as did NJPP's recent report on the sale tax, to make it "more productive" by eliminating the exemptions of many goods and services, and to consistently tax similar items.
It noted, for instance, that baseball tickets are taxed but a round of golf is not. Snickers bars are taxed but Kit Kats are not. And laundry detergent is taxed but dry cleaning is not.
Gov. Corzine apparently took the NJPP sales tax report, which came out the week before the budget was passed, to heart. He not only increased the sales tax, but extended it to many new goods and services. Give Corzine and the Legislature another year or two, and sales tax revenue growth may no longer be the poor sister. And don't be surprised if Kit Kats are finally taxed.
posted by Randy Bergmann at 2:27 PM
4 Comments:
I BUY everything online ...cut out the taxman altogether
In another year I will be living in Scottsdale, Arizona. Boy, will it be great living in a free state.
you will be joined by 75,000 families who will be fleeing this state ,only to be replaced by 300,000 mexican illegal families,who will be paying NO income tax but wil burden the health and school systems .Which the burden will be passed on to the fewer sad sacks who live here ....god bless you ,I too am counting my days left here
"I BUY everything online ...cut out the taxman altogether "
That won't last, they're working on that too.
Post a Comment
<< Home