Hypothesis: The 7% New Jersey sales tax should not be lowered because it is not a regressive tax that affects the poor more than it does the upper class.
On January 1, 2017 the New Jersey Sales tax will go down to 6.875% from the current 7%. I do not believe this tax will benefit lower income families. The sales tax in New Jersey only applies to luxury items, not essentials that people need to survive.
Some items that are exempt from the New Jersey sales tax:
- All canned food (vegetables,soups meat), except pet food.
- Bottled water without flavoring
- Cereal
- Bandades
- Juices with more than 50% juice
- Raw vegetables
- Vitamins
- Deli Meat
- Bread
- Milk
- Prescription Drugs
- Aspirin
- Clothing
The current sales tax law only applies to luxury items. Some examples of taxable items in New Jersey Include:
- Alcoholic beverages
- Tobacco (cigarettes, tobacco rolling papers, Cigars)
- Prepared food (restaurant meals, fast food)
- Pet food
- Nail Polish
Some States do have a regressive sales tax because they do tax grocery items (North Carolina, Alabama, Kansas). The difference from these States sales tax is that they tax basic needs, the poorer citizens of these States have to pay the sales tax on basic goods while in New Jersey, they do not pay the sales tax on basic goods.
Most food that can be bought with SNAP benefits are sales tax exempt. Some examples of items that can be bought with SNAP benefits that are tax free are:
- Bread
- Fruits and vegetables
- Milk
- Meat
- Canned items
Someone who relies on these SNAP benefits for food will not have to pay anymore for their basic groceries. While there are some items that can be bought with an EBT card, like soda which subject to the New Jersey sales tax, but soda is not an essential item.
Working Hypothesis 1
I do not believe that the New Jersey Sales Tax should be lowered because it is a fair tax and does not unfairly affect the poor.
Working Hypothesis 2
The sales tax is a regressive tax on the lower tax and it affects them more than it does the upper class.
2.
Cause/Effect
- If the sales tax is lowered then New Jersey will collect less sales tax revenue.
- If the sales tax is lowered then prepared meals will cost a little less after taxes than they currently do now.
Definition/Class
- I may need to clarify more what an EBT and SNAP benefits are.
- I feel that my thesis and arguments for my claim are good. I have examples and facts to prove my claims. Writing an essay about this claim should be easy for me. I have good sources to back up my claim also.
Rowan Counterintuitive 