REPUBLICANS OFFER HOLIDAY TAX BREAK TO BUSINESSES, CONSUMERS

Assembly Republicans are urging Governor Jon Corzine and Democrats to support their proposal to reduce the state sales tax 50 percent from Thanksgiving through January 4th in the wake of a wave of support for the proposal both from the public and members of the New Jersey business community.

“This proposal is generating an overwhelmingly positive response and I think that response demonstrates just how beneficial this would be for our economy,” said Assembly Republican Leader Alex DeCroce, R-Morris and Passaic. “The people who understand our economy best, those who operate businesses and employ New Jersey workers, are supporting this proposal. That should be a sign to the governor that this idea will help to give our economy a significant boost.”

Representatives from the New Jersey Restaurant Association, the National Federation of Independent Business, the Commerce and Industry Association of New Jersey, and the New Jersey Retail Merchants Association on Wednesday announced their support for the Republican proposal to cut the sales tax from 7 to 3.5 percent statewide, and from 3.5 to 1.75 percent in existing Urban Enterprise Zones.

The temporary sales tax holiday is timed to occur at a “make or break” time of year for many New Jersey businesses and is aimed at providing enough of a boost to keep those businesses open – and their workers employed. This is part of a larger long-term economic growth program introduced by Republicans this spring.

DeCroce said he intends to work with Assembly Speaker Joseph Roberts and Democrats in the Legislature to make the plan a reality and reiterated his offer of co-sponsorship of the proposal to Assembly Democrat members. He noted that the potential benefits of a sales tax reduction have been noted in the past by both Democrats and nonpartisan analysts in the Office of Legislative Services (OLS).

The National Retail Federation recently projected that holiday season sales will only rise by 2.2 percent – less than half the average rise in sales during the past ten holiday seasons. Additionally, the market research firm TNS Retail Forward projects that this year’s holiday season sales growth will be the lowest in the past 17 years.

DeCroce noted that economic stimulus plan presented by Corzine on Thursday will do nothing to stop businesses from closing or stem unemployment right now or anytime in the near future.

“Republicans believe the best course is to temporarily reduce the state sales tax to strengthen consumer spending, throw a lifeline to businesses in danger of failing and preserve jobs,” he said. “We need to make New Jersey more affordable, and Republicans have offered a common sense plan is better equipped to get us to that goal quickly.”