Repeal of Sales Tax Increases on Small Businesses and Consumers in 2008

Cifarelli and Siemaszkiewicz pledge

Repeal of Sales Tax Increases on Small Businesses and Consumers in 2008

New Jersey Legislative Democrats increased the Sales Tax for all purchases previously subject to the Sales Tax in New Jersey from 6% to 7% (a 17% increase) in 2006.  This Sales Tax increase hurt New Jersey consumers and hurt poorer people particularly, because of the Regressive nature of the Sales Tax.

New Jersey Democratic Politicians stated the purpose of the Sales Tax Increase was to provide funding from which property tax rebates could be paid out.  This was part of their overall Property Tax Reform plan.   However, Jon Corzine and the Democrats did not reveal the plan to increase the Sales Tax until after the Election of 2005.  Before the election, when asked what was the solution to the Property Tax problem Jon Corzine and most New Jersey Democratic politicians said that the solution to the Property Tax problem in New Jersey was a Constitutional Convention, which they still have not provided to New Jersey voters during the past two years.

There are several major flaws with the Democratic Plan.    First, the Democrats raised a non-Deductible tax, the Sales Tax, and lowered a Deductible Tax, the Property Tax, via a rebate.  What this will mean is that when most taxpayers in New Jersey file their Federal Income Tax next year, their Federal Income Taxes will actually increase, if they itemize.  Second, the Democrats used all of the existing dedicated rebate money already in the system, so that those taxpayers who already received large rebates did not receive additional tax relief.   Third, the Democrats used up two years of the Sales Taxes Increase funding in one year.  What this will mean is that rebates will have to be lower next year, unless either 1) the Democrats borrow billions of more dollars to fund the same rebates as for this year or 2) the Democrats raise the Sales Tax again.   And after years of criticizing the Republicans for mailing out rebate checks instead of just giving New Jersey Taxpayers a Credit on their State Income Tax, the Democrats not only distributed the rebates in exactly the same manner which they had criticized, but timed the mailing to be right at the moment when most voters in New Jersey are starting to pay a lot of attention to the election.

The New Jersey Democratic politicians in Trenton also extended the Sales Tax to many additional industries, which had not been previously taxed.  The industries include:

1.    Membership fees for golf clubs, health clubs, gyms, etc.

2.    Landscaping services

3.    Shipping and handling

4.    Limousine services

5.    Electronic data downloads

6.    Self-storage units

7.    Movie, and music downloads that are non-business related

8.    Private investigator services

9.    Flooring and carpeting installation

10. Parking lots that weren't previously taxed ( i.e. garages for casinos)

11. Tanning salons

12. Tattoo parlors

13. Carpet and upholstery cleaning

14. Magazines sold over the counter not via subscription.

15. Dry-cleaning

It is still not clear why these industries were singled out to be punished as they are all vital services for New Jersey consumers and these industries provide thousands of jobs for workers in New Jersey.  The selection of these industries were not only arbitrary, but bad public policy.

If elected, both Frank Cifarelli and Wojciech Siemaszkiewicz will sponsor legislation to repeal the sales tax on these industries in order to relieve the oppressive tax burden on New Jersey taxpayers and to strengthen small businesses in the New Jersey.

In addition, we also pledge to sponsor legislation on our entire platform:

1.    Capping  annual property tax increases to an acceptable level.

2.    Adopting  a circuit breaker on how much New Jersey can raise your taxes during a revaluation so that your property taxes do not increase too much in one year.

3.    Banning  ALL wheeling, no-bid contracts, double-pensions and pay-to-play situations.

4.    Banning  ALL Dual Office Holding, including current incumbents.

5.    Stopping  Eminent Domain abuses.

6.    Allowing  the public to vote on ALL new state debt.

7.    Reforming the Abbott School District Formula so we can get more school funding.

8.    Solving  traffic, road and flooding zone problems.

9.    Stopping  excessive and wasteful spending, fraud and abuse by the state.

We will sign a pledge to promise to vote against any new taxes and if elected, we will bring clean and honest government to District 37.   We will make the government more open and accountable to its citizens and taxpayers.

We are taxpayer advocates, not career politicians.

 It is time for a change in New Jersey politics.  

We are committed to positive change in New Jersey!

Contact Person:

Frank J. Cifarelli

201 489-6790

Wojciech Siemaszkiewicz

201 638-8100