
New Jersey Governor Jon Corzine is intent on “increasing the state sales tax to 7%, from 6%, and use a large share of the proceeds to eliminate a $4.5 billion deficit from the state’s $31 billion budget.” There is debate about whether to the increase sales tax rate and then in turn reduce property taxes or come up with another alternative.
Corzine has shut down state government operations not deemed “essential” because the state government lacks the legal authority to spend money. Some of the “essential” departments include state prisons, the state police department, the child welfare operation and the state public transportation agency.
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