TAXES

Sunday Star Ledger's article on state taxation is an eye opener. No ,per capita New Jersey is not the worse state i the nation. Sarah Pallin's Alaska can boast the highest total taxes per capita as well as the highest taxes as a percent of personal; income.

Of the  5.0 States;New Jersey ranks 5th in per capita and 8th in percentage of personal income. New Jersey's income tax is designed to be favorable to the poor and lower middle class.. Its burden does fall on the big earners. Overall the State ranks 19th in percent of total income  but 7th in revenue per capita.

Our sales tax is high but since it is limited to the State only and food and clothes are exempt we rank 36th inits percent of total income and as low as 19% in revenue per capita.

The real dog in our taxation structure is the local property tax; Of all the States N .J. is the highest(#1)  in Revenue per Capita and #2 in as a  percentage of personal income.  The  unfortunate result of the Municipal governments 9an d the State) heavy reliance on Property taxes is that the burden falls on those that can least afford it; the low income home owner and the fixed income senior citizens. That is the true curse of New Jersey's Tax system.

There has to be a restructuring with the most likely target, sales taxation. Restaurant services are taxed at present.but basic foods are not and should remain free ox taxation. Likewise clothing below a certain dollar level should be untaxed. There could be selective tax increases on different items this is a judgement that the politicians will have to work out. However there must be property tax relief for low income earners and others on fixed retirement incomes.The Corporate Taxes which falls in the upper 10% in both categories can be reworked  since on  about 7 %  of the States 252,000 corporations contribute more than  $2.000.00 in taxes towards the$24,6 Billion received.

Elections are coming ; how will the politicians face the issue?