NJ Politics Digest: A Call to Raise, Expand State’s Sales Tax

Would returning the state sales tax to seven percent impact residents? Brendan Smialowski/AFP/Getty Images

Returning the state sales tax rate to seven percent could raise $600 more for the state, while having little impact on most residents, according to a policy report that calls for the hike and recommends expanding the types of things people would have to pay taxes on.

In the report on the proposal by NJ101.5, a senior policy analyst for New Jersey Policy Perspective said the tax rate cut adopted as part of the push to hike the state gas tax “was a gimmicky tax policy that no one asked for, and reversing it back to its original rate will largely go unnoticed.” But the move would have a big impact on the state’s finances, analyst Sheila Reynerston said in the radio station report.

NJPP said the tax should be broadened to include accounting and bookkeeping, architects, attorney and engineer fees, among other things.

In the report, Reynerston said cutting spending alone won’t help New Jersey’s budget problems and that the state needs to consider ways to raise revenues.

“Keep throwing things at the wall until something sticks. If it’s not the millionaires’ tax, then let’s revisit the estate tax. If it’s not the estate tax, let’s revisit the sales tax code,” she said in the radio station report.

Quote of the Day: “There’s all sorts of companies that are facing competitive pressures due to a changing marketplace or new technologies.” — John Shelk, president of the Electric Power Supply Association, on a proposed $300 million per year to bail out PSEG, which operates two nuclear power plants in the state.

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NJ Politics Digest: A Call to Raise, Expand State’s Sales Tax