Aug 7, 2008 5:48 pm US/Eastern
New Jersey's # 1...In Taxing Its Residents
TRENTON (CBS) ―
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A new study says New Jersey has the highest state and local tax in the country.
AP
It's not always good to be at the top. A new study revealed New Jersey is the tax capital of the country.
A new study shows that the Garden State even surpasses New York for the heaviest local and state tax burden in the country.
New Jersey is number one, and residents say they're not surprised.
"My property taxes are close to $10,000 and I am expecting it to go up," said Robert Perez, of Bogota.
Because of that, Perez has cut back on his cable and cell phone calls. Linda Small took more drastic measures - moving out of New Jersey.
"A lot [of] things are cheaper in Florida," she told CBS 2 HD.
The report released by the Tax Foundation found that New Jersey residents paid 11.8 percent of their income in state and local taxes. Folks in New York forked out 11.7 percent, while residents in Connecticut paid 11.1 percent, the 1-2-3 ranking.
A large portion of the money collected by the state goes to pay pension funds.
A spokesperson for the state's treasury department told CBS 2 HD that under the Corzine administration, New Jersey has cut taxes more than any other administration in the country and that the tax foundation is a conservative group.
The spokesperson said the study was done by a group that is "heavily biased against northeastern states, where the per capita and household incomes are among the highest in the nation."
Conservative activist Steve Lonegan says if the state doesn't get off the backs of taxpayers and businesses, the Garden State will retain the tax foundation's top spot next year.
"New Jersey residents are overburdened because government has become way too big way too centralized. We've seen a massive expansion of entitlement programs and distribution of wealth," he said.
A small business owner CBS 2 HD spoke to says she's closing her 99-cent store because she can't afford the taxes.
"We will be going out of business," she said.
But state officials counter that while taxes may be high, New Jerseyans have the benefit of Manhattan's job market and its culture.
According to the tax foundation, Alaska and Nevada have the lowest local and state taxes.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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