The Birth Of A Tax
That’s the way all taxes are born, tiny. For example, when the federal income tax began in 1913, the tax rate was 1% for the majority of taxpayers and the maximum rate was 7% for people with incomes over $500,000. When the Social Security tax was enacted in 1935, the rate was 1% on the employer and 1% on the employee, on a maximum $3,000 of income.
The same is true of state taxes. New Jersey’s sales tax began at 3%, it’s now 6%, our state income began with a top rate of 2.5 %, and it’s now 9%. And on it goes with every tax government has ever imposed. They start tiny and grow into full fledged monsters, each with their own costly bureaucracies that must be supported with ever more tax dollars.
Smith has introduced legislation in the state’s senate that would create "a new tax on anyone using public water, a proposal Governor Jon Corzine said is worth considering".
Sen. Anthony Bucco, R-Boonton, said the proposal doesn't prevent the state from taking money collected from the water tax and using it for other purposes, as the state has done for 12 years with the now nearly insolvent Unemployment Insurance Trust Fund.Not to mention the other bankrupt state run trust funds for – transportation, property tax relief and school construction – that quickly come to mind.
We don’t need another new tax, along with the attendant bureaucracy that will be required to monitor and collect the new water tax. We are all for preserving clean water, but the state should use funds from one of the other gazillion fees and taxes it already collects to pay for any necessary programs.
The last thing New Jersey needs is another tax, no matter how "tiny".