New Jersey Senate Leader Tom Kean and Assembly Republican Leader Alex DeCroce have again called on Governor Corzine to adopt a sales tax holiday to provide economic relief to New Jersey families and businesses. The governor dismissed a similar Republican proposal before last year’s holiday season. The National Retail Federation (NFR) called last month for a nationwide sales tax holiday to be one leg of any new economic stimulus program.
“A sales tax holiday will save the average family $175 this year, according to the National Retail Federation,” Kean stated. “This sales tax holiday program should be part of an economic stimulus we adopt this year. It is especially timely given the fact that the stock market tumbled this morning, driven down mainly by dismal retail sales.”
On December 23, 2008 the NFR sent a letter to President-elect Obama asking that he include 3, 10 day sales tax holidays for a broad range of goods, as part of the economic stimulus plan. The letter was signed by the chairmen and CEOs of retail giants, J.C Penney, Saks Fifth Avenue and PetSmart. The NRF proposal includes both short-term economic stimulus measures and long-term investments. The NRF holds that sales tax holidays have proven to be a powerful inducement for people to shop. The federation proposes that the federal government reimburse states for lost revenue.
“Governor Corzine offered few new ideas to reinvigorate New Jersey’s economy,” DeCroce continued. “This program will put money back into the pockets of middle class families and generate more income tax revenue by saving jobs in the retail sector. The governor should embrace this common-sense proposal, and urge the President-elect to embrace this idea as well.”