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Home > $713 blind spot--NJ Sales Tax

$713 blind spot--NJ Sales Tax

July 6th, 2006 at 11:43 am

Maybe you've seen NJ's ridiculous budget woes on the news recently. A large portion of state government is shut down because the high mucky-mucks can't agree on how to balance the budget. The main sticking point seems to be whether to raise the state sales tax from 6% to 7%. Only one penny on the dollar, but a 16% increase nonetheless.

It's made me start wondering about how much sales tax we're paying already in our household, and how much this might affect us.

I finally found an article that said a $50,000 a year household was currently paying about $713 a year in sales tax, and the proposed increase would add $122 for a total of $835 a year.

It's kind of a shock to realize that $700 of our money has been going down the drain on sales tax each year, and I've barely been aware of it.

I don't know if there's any way I could actually cut down on it--so much of what's taxable is stuff you have to buy anyway. But I think I'll start tracking it in Quicken, just out of curiosity.

3 Responses to “$713 blind spot--NJ Sales Tax”

  1. boomeyers Says:

    Sounds like an interesting experiment. Let us know what you come up with. It kind of makes you want to go on strike from spending - ha! I guess if we did'nt have to buy gas or eat......

  2. LuckyRobin Says:

    I wish our government was fighting over 6 or 7 percent. In my county we pay 8.4%. Yuck.

  3. Bookie Says:

    We pay 9.5%. That's a combination of state and local sales tax. The price of no state income tax I guess.

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