NJ Sales tax hike hits the poorest...the hardest

Here's what Jon Corzine said in 2000 when he ran for U.S. Senate against former New Jersey Governor, Jim Florio:

According to newspaper accounts, in a May 2000 debate with Florio, Corzine described the sales tax as "the most regressive of taxes, the one that falls on the people least able to pay for it."

"If we were forced into a tax increase, as the governor said we were, we should have looked for other taxes to accomplish what was needed," Corzine said in the New Jersey Jewish News.

[Associated Press, Tom Hester Jr.; June 23, 2006]

Governor Corzine's sales tax hike of a penny, from 6 cents to 7 cents (a 17% increase) will hit the middle and working class families the hardest because it's regressive.

Matt and others have gone back and forth on this argument, but I think this is the main reason why the Assembly Democrats, led by Speaker Roberts oppose the proposed sales tax hike.

Another Corzine quote, saying a "sales tax increase" is most regressive of any kind...

Mr. Corzine offered his most extended rebuke of Mr. Florio for raising taxes in 1990...And he would not have raised the sales tax, the "most regressive" kind of tax, in any case, he said.
[N.Y. Times; May 12, 2000].

Ok, so what? We have then U.S. Senate candidate Jon Corzine railing against the same sales tax he now wants to increase.  But so what?

Well...Corzine of 2000 made a great point.  A sales tax hike does hit the working poor the hardest.  And it is the most regressive.

Why not raise the income tax on people earning $250,000 and more?  If you're going to stand with the workers union's and say "I stand with you" and say that you represent the working class....then don't raise taxes on the working class to close the budget deficit.

You can raise the income tax.  Ok...your rich wall street buddies might get pissed for raising their income tax?

Fine.  Then find other cuts in state government.  The state of NJ employs something to the tune of 80,000 people.  That's a HUGE workforce.

Everyone's sharing in on the pain.  School budgets are being trimmed.  Senior's are paying out of pocket for prescriptions..the donut hole is eating some of them alive.  Municipalities are making cuts...so are hospitals, nursing homes, universities, etc.  You name it.

Would it be too much to ask other's to join in on the sacrifice?

Or is GOVERNOR Jon Corzine now going to opppose U.S. Senate candidate Jon Corzine and shove a sales tax increse down the throats of NJ taxpayers?

Tags: budget, Corzine, NJ, roberts, sales tax hike (all tags)

Comments

7 Comments

Fill me in

it could be that NJ is in far greater debt than it was six years ago and this is necessary to keep the state from falling farther into the red.  I have NO clue if that's true but it seems plausible.  Any Jersey folks care to fill me in?

by jkfp2004 2006-07-05 10:02PM | 0 recs
Re: NJ Sales tax hike hits the poorest...the harde

The argument is that you can make exemptions on the sales tax so that it resembles a luxury tax.  I don't know how they have structured the NJ tax, but for example, Florida tries to hit tourists.  There is no tax on food or medicine, I think it is four or five percent on regular items, and then high taxes associated with tourism: hotels and restaurants, for example.  I'm not for sales taxes, I'm just saying that it may have been targeted so that Corzine could stomach it.  

by prince myshkin 2006-07-06 07:05AM | 0 recs
Re: NJ Sales tax hike hits the poorest...the harde

NJ's sales tax is not like most states' - it exempts food and clothing. It is pretty progressive.

We recently had a millionaires tax, and there is fear that raising it again will drive wealthy people out of the state. Some are already living half the year in Florida to avoid having to pay income taxes. There are diminishing returns as you continue to increase it, and that's what's preventing them from raising it.

Anyway, the Assembly today has proposed a budget that has neither tax increase - it just expands the sales tax to some additional services.

by Blue Jersey 2006-07-06 07:51AM | 0 recs
Re: NJ Sales tax hike hits the poorest...the harde

According to this report the NJ sales tax is still highly regressive.

I haven't kept up with NJ politics much in the last 2 years, despite moving back there, so I'm not sure how accurate this 2003 report is. Still, according to it NJ has one of the most regressive tax systems in the nation, and increasing the sales tax won't help.

by dantheman 2006-07-06 09:16AM | 0 recs
Re: NJ Sales tax hike hits the poorest...the harde

I agree...besides, just look at what then U.S. Senate candidate Jon Corzine said about the sales tax.

He called it the "most regressive of taxes, the one that falls on the people least able to pay for it."

Nothing's changed since then.  But is this a Wall Street millionaire worth $200 - $400 being a bully?

ANd shutting down the state government because he can't have his way?

Come on.  Show us some leadership.

by Moderate Minded 2006-07-06 09:40AM | 0 recs
Re: NJ Sales tax

is there a choice?

by bruh21 2006-07-06 10:48AM | 0 recs
Corzine is really just Republican Lite

Corzine is officially a "flip flopper". WTF is he thinking? I love the pictures of the casino union employees protesting in front of the Governor's office! You know that you aren't doing your job right as a Democrat when the Unions are protesting you.

Although I think that he made the right choice when he was a Senator and voted against the War in Iraq.

by OsoDelMar 2006-07-06 11:52AM | 0 recs

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