The Washington Post yesterday posted an editorial opposing the repeal of the Affordable Care Act’s medical device tax, on the grounds that it would constitute “caving in to special interests.”
That view of the...
The facts on New Jersey’s Tax Climate
New Jersey's Individual Income Tax System
New Jersey's personal income tax system consists of six brackets and a top rate of 8.97%. That rate ranks 6th highest among states levying an individual income tax. New Jersey's state and local income tax collections per person were $1204 in 2011 which ranked 9th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
New Jersey's Corporate Income Tax System
New Jersey's corporate income tax system consists of a flat rate of 9%. That rate ranks 7th highest among states levying a corporate income tax. New Jersey's state and local corporate income tax collections per person were $251 in 2011 which ranked 7th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
New Jersey Sales and Excise Taxes
New Jersey levies a 7% general sales or use tax on consumers, which is above the national median of 5.95%. New Jersey's state and local governments collect $923 per person in general sales taxes and $445 per person in excise taxes, for a combined figure of $1368, which ranks 24th highest nationally. New Jersey's gasoline tax stands at 14.5¢ (2nd lowest nationally), while its cigarette tax stands at $2.7 (8th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
New Jersey Property Tax Collections Highest in Nation
New Jersey's state and local governments collected approximately $2893 per person in property taxes, which ranks highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, New Jersey taxpayers worked until May 9th (latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: New York, May 4th (ranked 3rd latest nationally); Pennsylvania, April 21st (ranked 15th latest nationally); and Delaware, April 18th (ranked 19th latest nationally).
New Jersey's 2011 tax burden of 12.27% ranks 2nd highest out of 50 states, and is above the national average of 9.8%. New Jersey's taxpayers pay $6675 per capita in state and local taxes.
New Jersey's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
New Jersey ranks 49th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: New York, 50th, Pennsylvania, 24th, and Delaware, 13th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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That view of the...
This post originally appeared as a Forbes op-ed here.
Ohio tax policy needs a lot of work, and Governor John Kasich talks about it a lot. The state ranks 44th in the Tax Foundation’s State Business Tax Climate...