Proposal to Raise New Jersey Sales Tax to Bail Out NJ Transit Challenged

April 24, 2024
1 min read
Proposal to Raise New Jersey Sales Tax to Bail Out NJ Transit Challenged
NJ Transit - Aberdeen station Photo 103079989 © Jiawangkun | Dreamstime.com

TRENTON, N.J. – Assemblyman Brian Bergen criticized the NJ Business and Industry Association’s (NJBIA) advocacy efforts after the organization suggested increasing the state sales tax rate to 7% to solve NJ Transit’s budget deficit.

During a press conference, NJBIA President Michele Siekerka mentioned the need for a dedicated revenue source for NJ Transit, opposing Gov. Phil Murphy’s proposed corporate transit fee. Siekerka’s comments sparked controversy, stating, “There is the opportunity to go back to that seven percent sales tax and dedicate that amount.”

In response, Bergen, a Republican from Morris County, condemned the idea, labeling it as “moronic” and unsuitable, particularly in a period of financial hardship for many. Bergen emphasized that raising any form of taxes, especially the sales tax, which impacts every individual and has a more substantial effect on lower-income families, is unreasonable. He expressed strong disapproval, stating that those in favor of such measures should reevaluate their position.

NJ Business and Industry Association sought to clarify its position on Wednesday, releasing a statement indicating support for directing sales tax revenue increases to NJ Transit rather than advocating for an increase in the sales tax rate. Dismissing this clarification as inadequate, Bergen continued his critique, questioning the credibility of NJBIA’s advocacy efforts and suggesting a lack of efficiency. Bergen highlighted the organization’s historical exclusion from both Republican and Democrat administrations, attributing it to their inadequacy in advocating for businesses’ best interests.