WyBlog

Give the NJ GOP sales tax plan a try

The NJ GOP has proposed cutting the state's 7% sales tax in half for the Christmas shopping season, from Thanksgiving through January 4^th. The plan would slash the sales tax on every item sold in New Jersey during a time when retailers count on holiday shoppers to open their wallets. With the economic outlook appearing grim it is likely that people will think twice before going shopping. A sales tax cut has the potential to stimulate buyers interest. Plus it will attract residents of neighboring states with higher sales taxes to bring their shopping dollars to New Jersey.

Governor Jon Corzine is reportedly "cool" to the idea. Big surprise there. Tax cuts are like Kryptonite to Democrats. Right away the liberals circled the wagons.

Translation -- they might not have enough money to fund this year's income redistribution schemes. Boo hoo. Does Mr. Shure believe that the good citizens of NJ, already straining under the load of oppressive property taxes, increasing energy costs, and dwindling investment accounts, are somehow not the people who are "most in need"? Apparently so. Perhaps he views the residents of Newark as being "most in need"; Corzine recently sent them $45 million in "distressed cities aid" which they promptly turned around and used to give big fat raises to their municipal employees. I think in that case the "need" this money fulfilled was the need to ensure that the residents of Newark continue to turn out in record numbers to vote for Democratic Party candidates.

It is also quite possible that Corzine and Shure and the Democrats are unwilling to pursue this proposal on the off chance that it might actually work. That is, if the Laffer Curve holds true to theory, overall revenues might actually go up. It's not as far-fetched an idea as some folks would like us to believe (cough, "Voodoo Economics", cough). Revenue projections are already down due to the high degree of consumer pessimism prevalent in the country. Retail sales forecasts are not exactly rosy either. We need a to find a way to attract shoppers to the stores. More shoppers means more staff needs to be hired (who pay income taxes) and then companies make more profits (and profits are taxed too). Overall the state could realize an increase in revenue.

It's worth a shot.

Posted at 22:54 by Chris   []   | | Perm Link |