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Auth urges cutting sales taxes statewide to spur economy

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June 6,2015
the staff of the Ridgewood blog

Ridgewood NJ , Assemblymen Robert Auth in February pushed for legislation to end county government in New Jersey now on Thursday, Connecticut and Rhode Island long ago abolished county government, while Massachusetts has eliminated most of its county governments.On March 26, 2015, Assemblyman Robert Auth made a motion to amend legislation, which grants Atlantic City as an Urban Enterprise Zone for 10 years (A-3920), to also extend the sales tax cut statewide.

Auth said we all live in districts that have lost jobs , which echoed what he said in February , “I’m watching businesses leave our state. A lot of it is in the district I represent,” said Auth. “I totaled up all the county budgets throughout the state. It’s like $6.5 billion a year in New Jersey. That’s a lot of money.”  http://www.nj.com/politics/index.ssf/2015/02/he_end_of_county_government_in_nj_bergen_county_la.html  .

One of the most immediate and clear effects of sales tax on supply and demand involves an increase in the price of consumer goods. This occurs because businesses must pay more for the products they buy, including machinery, office furnishings and computer equipment. The higher cost of doing business translates into higher prices for new products. money.http://smallbusiness.chron.com/sales-tax-effect-supply-demand-20815.html

While sales tax affects supply directly, it only has an indirect effect on consumer demand. Besides altering the equilibrium price, which takes demand into account, sales tax also impacts consumers’ buying power. When sales tax rates are high, consumers spend more money on taxes and have less to spend on additional goods. This drives down general demand, or forces businesses to reduce prices to keep demand steady. This effect holds true even for items that are not subject to sales tax, such as grocery items and prescription drugs.http://smallbusiness.chron.com/sales-tax-effect-supply-demand-20815.html

One thought on “Auth urges cutting sales taxes statewide to spur economy

  1. The unions will be all for that. Maybe we can cut gasoline taxes, NJ Transit fares and NJ state highway toll charges while we’re at it. How about municipal and state taxes, too?

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