New Jersey FairTax talk in Somerville
Wednesday, April 22, 2009
By: Somerset Reporter

New Jersey FairTax talk in Somerville about Missouri tax proposal's impact on state business

SOMERVILLE - Members of New Jersey FairTax and area residents attended a workshop Saturday at the borough library. Discussed was a decision by the Missouri House of Representatives on April 16 to send a proposed amendment to the Missouri Constitution, HJR36, to the state Senate that, if enacted, would bring a state-level fair tax to Missouri.

The measure would eliminate state income and withholding taxes on individuals and corporations.

These taxes would be replaced with a state sales tax of 5.11 percent on sales, use or consumption of all new tangible personal property, rental property or services sold in Missouri. There would be an exception for property sold to the federal government or purchased as a part or ingredient of new tangible personal property to be sold at retail, according to a release from New Jersey FairTax.

New Jersey FairTax State Co-Director, engineer and business owner Norm Simms of Barnegat has stated that his decisions on where to site production are "sensitive to tax climate." If the Missouri state fair tax passes, businesses could consider locating - or relocating - to Missouri - and away from New Jersey, it was stated in the release.

The bill does not replace the Missouri Estate Tax because that tax is a pick-up tax for the federal credit for state death taxes. Replacing that tax would cost Missouri residents revenue without saving taxes, according to the release.

If the Missouri Senate approves it, the measure will be submitted to Missouri voters in November 2010 without need for consideration by the governor. If approved by the voters, the measure would take effect on Jan. 1, 2012, and Missouri would become the first in the United States to test the macro-economic benefits of the fair tax, according to the release.

Because of the broader tax base for the fair tax, New Jersey could adopt its own version of the fair tax, replacing corporate and personal income taxes, current sales taxes, transfer inheritance taxes and the estate tax - with a "pre-bate" - all at a rate of 5.52 percent. Such a measure would help reverse the outward flow of business from this state, according to the release. For more about this version of the fair tax, see beaconhill.org/FairTax2007/FiscalFederalismNatFairtTaxStatesBHI-071025.pdf

For more about New Jersey FairTax, visit fairtaxnation.com/group/newjerseyfairtax