Residents fear possible New Jersey sales tax increasePosted: Updated:
(03/15/06) TEANECK ? Rumors have fueled increased speculation that Governor Jon Corzine (D-NJ) will raise New Jersey?s sale tax in an effort to close a nearly $4 billion budget hole.
Despite the rumors, Corzine remains tight-lipped about the possibility of a sales tax hike from 6 percent to 7 percent. The governor said specifics about his plan will be revealed when he unveils his budget next Tuesday. However, Corzine admits it will be difficult to solve New Jersey?s budget problems through funding cuts alone.
Residents say a sales tax hike would force them to pinch pennies even more than usual. In addition, retailers fear the increase would reduce the number of shoppers coming through their doors.