THE JERSEY BOYS
July 6, 2006
A proposed sales tax increase from Governor Jon Corzine, from 6 percent to 7 percent, has left New Jersey without a state budget for five days and unable to pay its state workers, who include casino inspectors. The gambling shutdown will cost the state some $1.3 million a day in lost taxes, says the Wall Street Journal.
The sales tax increase would raise about $1.1 billion annually, in a $31 billion budget. But, it will cost the average New Jersey family about $275 a year. Residents are unlikely to be happy about the increase, considering their state is already one of the most heavily taxed in the nation:
- New Jersey's property tax burden amounts to $2,170 per year (per capita), and leads the nation.
- State and local taxes cost $4,557 on average (per capita), and rank 4th overall.
- State government debt averages $3,889 (per capita), and ranks 10th overall.
- The top income tax rate is 9 percent, and ranks 5th overall.
- The state ranks 49th in business friendliness.
With no one really trying to cut spending, higher taxes may be a forgone conclusion. New Jersey voters keep electing tax-and-spendaholics, so they get what they deserve, says the Journal.
Source: Editorial, "The Jersey Boys," Wall Street Journal, July 6, 2006
For text (subscription required):
Browse more articles on Tax and Spending Issues