What's UP with New Jersey?

[cardaway]

One wonders if the "police blitz" as you refer to it is to promote safe driving or enhance the revenue stream. It is supposed to be altruistic but driving violations in most states become revenue enhancers. As to the "right wing talk show listeners", don't assume they have agenda. The rumor started somewhere and NJ wouldn't be the first, nor would it be the last state to target out of staters. Its hardly a new concept.

Still just a rumor you have failed to back up. And no agenda...

And all speed limit ticketing systems are about revenue. If they were really about making things safer the fines would be high enough to make sure nobody ever went over the speed limit.

 

[JVL1018]

And I agree with you on the property tax 'rebates.' I'm not too knowledeable on the issue since I'm not a homeowner yet but why not just reduce the property taxes? My gut says the state can't since they'd then have a bigger shortfall since counties and municipalities would be in a hole. Am I correct with saying the large portion of property taxes go to local education?

<snip>



Sales taxes are historically known to be a regressive tax, I agree with you there. However, I don't see that being the issue here, since we are paying 6% already and raising it 1% will cost the average family $350 (depending on if you make large asset purchases). but if you use the argument that it's regressive, lower income families won't be doing that anyways. I would rather pay the extra 1% instead of paying more income taxes. I really trust the Governor with his plan, but hey we can't use 20/20 hindsight vision here yet.

First, here where I live the majority of our property taxes(and they are high, mine are $11,000) go to the town school system. I believe it's 60% or so.

Second, I don't know about where you live, but here in Northern NJ, it seems like half of all the cars at the malls on Saturday have a NY license plate. Let everyone who comes in and shops here shoulder part of the burden by upping the sales tax. Income tax won't do that.

 

[NewJersey]

First, here where I live the majority of our property taxes(and they are high, mine are $11,000) go to the town school system. I believe it's 60% or so.

Second, I don't know about where you live, but here in Northern NJ, it seems like half of all the cars at the malls on Saturday have a NY license plate. Let everyone who comes in and shops here shoulder part of the burden by upping the sales tax. Income tax won't do that.

Yes, the Staten Islanders invade the mall I go too (no offense to them!). As long as they buy non-clothing items such as electronics, they'll help with the burden. I see that as fair (a trade off for invading our beaches! )

I truly believe that this budget crisis can be resolved without raising the sales tax, but I just don't see that happening.

As do I, which is why I think Corzine's plan is better than the Assembly. I applaud him, like you for taking this issue seriously.

 

[deelam]

Second, I don't know about where you live, but here in Northern NJ, it seems like half of all the cars at the malls on Saturday have a NY license plate. Let everyone who comes in and shops here shoulder part of the burden by upping the sales tax. Income tax won't do that.

Where I live in south Jersey our malls get a lot of Philly people.

 

[ducklite]

Bottom line, if you speed you get a ticket. Don't speed and you have nothing to worry about. And frankly after dealing with the morons in BMW's and mini-vans with NY and CT tags speeding like people possessed through NJ for the 12 years I lived there, I hope they DO crack down on them!

As far as the budget goes, I just don't see a problem with an extra 1% a year. Frankly, it's not going to make a difference. For lower income people, it won't matter because clothing and basic food are tax free anyhow. The people who will really end up paying are the ones buying luxury vehicles, high end electronics, etc. Oh poor person driving a Jaguar and having to pay an additional $600 for it. My heart breaks. NOT!

Anne

 

[JimFitz]

Dont raise my taxes even if it is only 1%!!! The government needs to do more with less just like New Jersey residents have had to do over the past 5 years. Property taxes are up....now the sales tax????

Do more with less.

 

[arminnie]

I'm pretty anti-tax but 6% sales tax seems pretty low to me. Everyplace I've been it has been closer to 8 or 9%. Plus it's not that regressive if they exempt clothes and food.

I'm used to paying a much higher rate that is charged on EVERYTHING - food, clothes, drycleaning, dog grooming, etc etc etc.

 

[Paging Tom Morrow]

First, here where I live the majority of our property taxes(and they are high, mine are $11,000) go to the town school system. I believe it's 60% or so.

I'm not sure about the percentages, but this in general is true. The problem though is that state money used to go to fund the local schools. Then the state cutdown the amount of local school aid without giving a tax break. Without that piece of funding, local towns were forced to raise property taxes. So even though the increase came at the local level, it was caused by the state not allocating the same amount of funds it historically had. Bottom line, pay more for less.

 

[NewJersey]

Kudos to Corzine for doing a good job handling this, IMO. I'm back in his camp. I'm still skeptical on this "lower property taxes" bit though.

 

[mickeyfan2]

Second, I don't know about where you live, but here in Northern NJ, it seems like half of all the cars at the malls on Saturday have a NY license plate. Let everyone who comes in and shops here shoulder part of the burden by upping the sales tax. Income tax won't do that.

But if the rise in the sales tax makes those people shop in their home state, then they are not helping. Also PA tax is only 6% and not on clothing or food. Will NJ shopper flock to PA for lower taxes?

 

[NewJersey]

But if the rise in the sales tax makes those people shop in their home state, then they are not helping. Also PA tax is only 6% and not on clothing or food. Will NJ shopper flock to PA for lower taxes?

I'm not to save 1% tax. The only time I could see that would be if you were to buy a car. But once you register, you're hit with the use tax in the state (all states with a sales tax impose this to discourage residents from evading state sales taxes). So no, I don't see people flocking out of state to save that 30 cents on their DVD player.

 

[Charade]

Ok, so if the 1 percent will bring in an estimated extra 1.2 billion (correct me if I'm wrong but that's the number I've heard) and the sales tax was already 6 percent, wouldn't that mean that with just sales tax alone, the state was bringing in 7.2 billion? With the extra 1.2b from the increase, that makes 8.4b just in sales tax. That's A LOT of money!!! How big is their budget???

 

[NewJersey]

Ok, so if the 1 percent will bring in an estimated extra 1.2 billion (correct me if I'm wrong but that's the number I've heard) and the sales tax was already 6 percent, wouldn't that mean that with just sales tax alone, the state was bringing in 7.2 billion? With the extra 1.2b from the increase, that makes 8.4b just in sales tax. That's A LOT of money!!! How big is their budget???

I believe the budget is in the mid 30 Billions. Highest ever; yes spending is out of control here. I'm curious to see how Corzine handles all this in his upcoming 4 year term. I think the extra 1.2b comes from the sales tax increase, and the increase in other taxes as well such as fur coats, cigarettes, not sure what else. I've been trying to read articles this morning but the details aren't out yet, so I'm just speculating at best.

The extra 1.2b: half will go towards lowering property taxes (we'll see about that) with the room for all of it going towards it once the budget is balanced, and the other half towards plugging the hole in the budget.

 

[bballmom56]

I heard something on the radio this morning that the deal to the 1% increase is that 1/2 of that 1% will go to property tax relief. So we are raising the tax to give us property tax relief? Does this make sense?

 

[mickeyfan2]

I heard something on the radio this morning that the deal to the 1% increase is that 1/2 of that 1% will go to property tax relief. So we are raising the tax to give us property tax relief? Does this make sense?

Nope.

 

[LoraJ]

But if the rise in the sales tax makes those people shop in their home state, then they are not helping. Also PA tax is only 6% and not on clothing or food. Will NJ shopper flock to PA for lower taxes?

Those shoppers from PA probably flock to the 3% zones anyway.

 

[Charade]

I heard something on the radio this morning that the deal to the 1% increase is that 1/2 of that 1% will go to property tax relief. So we are raising the tax to give us property tax relief? Does this make sense?

It doesn't. It's "voodoo" economics. Tax relief doesn't consist of shifting tax burdens.

 

[Cindy B]

Those shoppers from PA probably flock to the 3% zones anyway.

There is a 3% zone in Burlington County (Mt. Holly area). However, most of the businesses in that zone do not draw a crowd. In fact, there used to be strip mall and a full shopping center. For the past 10 years, most of these stores have gone out of business and there really isn't anywhere to shop anymore unless you go out of the 3% zone to Mt. Laurel, Medford, Burlington or Moorestown (neighboring towns)

 

[ducklite]

But if the rise in the sales tax makes those people shop in their home state, then they are not helping. Also PA tax is only 6% and not on clothing or food. Will NJ shopper flock to PA for lower taxes?

It's still going to be lower than NY, and still going to be tax free on clothing. So it's really not going to have an impact on shoppers from neighboring states.

Anne

 

[NewJersey]

It's still going to be lower than NY, and still going to be tax free on clothing. So it's really not going to have an impact on shoppers from neighboring states.

Anne

Yeah and like I said above, I don't see myself driving an hour to PA to save a dollar or two on tax on an electronics purchase or what have you.