The state of New Jersey has come into the limelight recently, over their state legislative debate over the possibility in the rise of the state’s gasoline taxes. The state if New Jersey has not raised their taxes in over three decades. The gasoline prices have been virtually the same, barring the dynamism and flexibility in the oil futures markets across the world. The New Jersey state governor had proposed this move after the state had decided to slash the sales tax by a substantial amount. The state of New Jersey is slated to have reduced the sales tax after a constant badgering and a final breakthrough in the lobbying body interest groups in the state.
A failed campaign
The state of New Jersey, is currently under a Republican Party administration. The current New Jersey state governor Chris Christie has just come out of an unsuccessful and disappointing Presidential primary campaign. Governor Chris Christie was unable to secure the number of votes required to secure the Republican Party nomination for the Presidential race. In addition to this, Chris Christie had thrown his endorsement behind current Republican Party nominee, Donald Trump. However, the endorsement has not yet transformed into anything yet.
The slashing of the sales tax was a typical Republican move that was made in order to incentivize businesses to stay back in the state of New Jersey. In the past decade there has been a substantial amount of American businesses that have been moving to various other countries in seek of greener pastures, with lower corporate tax rates. Since the control of the corporate tax rates is a federal jurisdiction, the state of New Jersey decided to move and make the cut in sales tax to entice businesses in the state. This move however, seems to have backlashed as the cut in the sales tax will now take out over a billion dollars in annual funding out of the state treasury.
A failed policy?
This would also feed into the waning state economy making it a major issue of concern. The state is currently scurrying to ensure the funds required for running the state. In order to make up for the loss that would be incurred by the state, it is now debating whether the people of the state could be taxed extra on gasoline in order to keep up with the state finances.