A hundred bucks doesn’t buy you much in New Jersey, according to a recent study by the Tax Foundation.
In fact, it only buys you $87.64 worth of goods. That means, when you consider the prices of goods, housing and income taxes compared with consumers’ buying power, New Jersey rates fourth-worst among the 50 states and the District of Columbia, the study found.
Contrast that with Mississippi, where $100 will buy you $115.74 worth of goods, or Arkansas, where it would buy you $114.16 worth. They were the top two states for purchasing power, followed by Missouri and Alabama, tied for No. 3 at $113.51.
On the other hand, Washington, D.C., fared the worst, with $100 buying only $84.60 worth of goods. Hawaii was next-worst, at $85.32, and then came New York, at $86.66.
At least New Jersey trumped its northern neighbor, right?
Part of the reason New Jersey fared so poorly was its high tax rate. The Tax Foundation reported that New Jersey’s income tax rate of 8.97 percent was fifth-highest in the nation.
ALSO ON NJBIZ:
Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.View Comment Policy