--- Why should I care about a regressive sales tax? Isn’t it better than a property tax? ---

The rebuttal argument states: Half a percent is a very small increase in the sales tax ($100 in taxable sales would cost only 50 cents more). This is much preferable to property tax based bonds where the costs could be significantly higher.

First of all, property tax hikes require a higher voter threshold to pass (66%). In addition, this means all money raised from the tax hike must be used only for a specific purpose. The current sales tax hike is a general tax that requires less votes to pass (50+1%) and places funds into the general fund. Therefore, if you want to be truly sure money is going where it needs to go, demand a specific tax. An oversight committee means nothing when the city can legally use funds for any governmental purpose.

Additionally, the government pretends creates the false choice between property tax bonds and higher sales tax. They have the utility tax which can continue to fund the shortfall in the budget supposedly needed for police and other basic services. The government has not completed a sincere effort to consider alternative means of funding the project. Please note the City’s earlier disclosing revenue is still not at a level sufficient to cover basic services. Will revenue increase now that consumers will be charged more in their daily lives?

The government also fails to account for the situation where stores and other local businesses that charge hundreds if not thousands of dollars for goods (furniture, cars, etc.) will deal with the increase in sales tax. As the sales tax is meant to be charged even outside the boundaries of Newark, Newark shoppers will have less discretionary funds to spend on goods weakening the local Newark economy even further than it is now. Please note our supposedly emergency utility users tax is still needed years after the recession to pay for our basic services.

Instead of helping local business thrive by finally cutting back taxes on residents, they are continuing to increase the burden on residents by keeping our sales tax nearly one of the highest across the state. Also, please refer back to how the City is able to decrease the duration of the tax hike, yet refuses to do so to maintain a slush fund available to them.

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