Governor, lawmakers remain deadlocked on tax

The governor wants to raise the sales tax, a plan that legislators oppose.
TRENTON, N.J. (AP) -- Legislators opposed to Gov. Jon S. Corzine's proposal to raise the sales tax rejected a compromise sought by the governor Tuesday and began devising their own budget plan, which might involve an income tax increase.
Corzine hauled lawmakers in to work on the July Fourth, imploring them to end a budget standoff that has shut down many government services, while Atlantic City casinos fought to keep from being dragged into the fight.
Members of the state Assembly budget panel planned to spend the night crafting a new plan, said Speaker Joseph Roberts Jr.
Tuesday's special session came three days after Corzine started shutting down state government because lawmakers missed the July 1 constitutional deadline to approve a new budget. Without a budget, the government can't spend money.
The state lottery, road construction, motor vehicle offices, vehicle inspection stations and courts have closed. More than half the state work force -- 45,000 people -- was ordered to stay home Monday. Lost lottery ticket sales are costing the state $2.2 million per day, according to the state treasury.
Other closings in offing
If no deal is reached, state parks and historic sites would be closed today along with Atlantic City casinos, which must have state regulators on duty.
It would be the first time casinos have been forced to close since Resorts opened its doors in 1978 as New Jersey's first casino-hotel. In the intervening years, they have managed to keep the doors open, even if it meant shoveling snow, fortifying entrances with sand bags to protect against ocean waves or putting CEOs to work flipping burgers during labor strikes.
The dispute between the governor and his fellow Democrats who control the Legislature centers on his plan to increase the state sales tax from 6 percent to 7 percent to help overcome a $4.5 billion budget deficit for his $31 billion spending plan. The proposal would cost the average New Jersey family $275 per year, according to experts.
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