Increase in Cigarette Tax To Result In $149.2 Million Revenue Loss
Can New Jersey afford the 35 cent per pack tax increase on cigarettes? We don’t mean the smokers paying the tax, we’re referring to the negative impact the increase will have on the state’s budget.
If you look at page 103 of the 2007 Budget in Brief you’ll notice the state anticipates a $149.2 million reduction in cigarette tax revenue based on the 35 cent tax increase. This is most curious considering the state has had revenue increases each year from the cigarette tax up until now.
This is a paradox, isn’t it? The tax is going up, but the tax revenue is expected to go down. An increase in taxes resulting in a decrease in tax revenue is contrary to the progressive laws of economics. Just ask Thurman Hart, he’ll explain it to you.
However, for those grounded in reality and familiar with revenue implications of tax increases, it's obvious the increase in New Jersey’s cigarette tax is an attempt at social engineering and has nothing to do with “closing the budget gap”. Actually, the cigarette tax increase is one of Governor Corzine’s “hard choices” spending “cuts’.
Aside from the loss in tax revenue, can the state afford the extra costs associated with law enforcement to combat the additional smuggling rings and the unsavory characters this “revenue raiser” reducer will bring to the state?
Yes, we know if Governor Corzine was cornered with the truth he would say he is raising the tax for the smokers' own good. And he’d probably say down the road it will save on health care bills, but he didn’t say any of that. He “framed” the cigarette tax increase as a “revenue raiser” to mislead the public, just as he has with almost the entire 2007 budget.
If you look at page 103 of the 2007 Budget in Brief you’ll notice the state anticipates a $149.2 million reduction in cigarette tax revenue based on the 35 cent tax increase. This is most curious considering the state has had revenue increases each year from the cigarette tax up until now.
This is a paradox, isn’t it? The tax is going up, but the tax revenue is expected to go down. An increase in taxes resulting in a decrease in tax revenue is contrary to the progressive laws of economics. Just ask Thurman Hart, he’ll explain it to you.
However, for those grounded in reality and familiar with revenue implications of tax increases, it's obvious the increase in New Jersey’s cigarette tax is an attempt at social engineering and has nothing to do with “closing the budget gap”. Actually, the cigarette tax increase is one of Governor Corzine’s “hard choices” spending “cuts’.
Aside from the loss in tax revenue, can the state afford the extra costs associated with law enforcement to combat the additional smuggling rings and the unsavory characters this “revenue raiser” reducer will bring to the state?
Yes, we know if Governor Corzine was cornered with the truth he would say he is raising the tax for the smokers' own good. And he’d probably say down the road it will save on health care bills, but he didn’t say any of that. He “framed” the cigarette tax increase as a “revenue raiser” to mislead the public, just as he has with almost the entire 2007 budget.
Posted by Enlighten-NewJersey @ 4:54 PM
|
9 Comments:
Sin taxes are nonsensical to begin with. Governments tax alcohol, tobacco, etc. under the guise of public health. The reality is that NJ needs those tax dollars to balance the budget. But if health officials get their way, everyone would stop smoking, drinking, whatever.
The higher the tax, the fewer who buy. The fewer who buy, the fewer tax dollars the state reaps.
Hard choice, my butt.
You have to remember to combine the sales tax increase and the smoking ban and there numbers as a loss are probably correct. My guess is about 14 months before the Federal takeover of our State.
What was up with the preacher at the end of the Bearded Clowns budget address. If that was a Republican the Dems would have crushed each other to get to the camera first to cry seperation of church and state. What hypocrits, don't they realize God doesn't like Dems either.
I admit I haven't seen said budget yet, but unless I'm missing something, an $80 million revenue increase from a $0.35 tax hike implies that 228,571,428.6 (give or take) packs of cigarettes are expected to be sold in a state of 9 million residents. That's a lot of NYers at the shore in the summer.
I realize that this is a stealth health move, but its amazing how little Corzine thinks of his constituents.
I worked at a convenience store chain for four years and I remember when the first cigarette tax went into place. The store's number one strenght like most were cigarette sales and the chain I worked for always sold them at the lowest price allowed by law.
When the first increase went into effect in 2002 the store went from bringing in anywhere from $10,000 to $15,000 a day to $7,800 to $9,000 a day. Sales plummeted and not only that but attempted shopliftings and stolen credit card purchases rose sharply.
Tax increases in cigarette and alcohol taxes do not only hurt us in the wallet but hurts our quality of life as well. People will simply find other places and means to purchase there alcohol and tobacco while those who don't have the means to do so and will stop at nothing to get what they want whether it's shoplifting, armed robbery or bootlegging.
Amid all of the anger and frustration among us bloggers and our consrevative bretheren out there, we were smart enough to see through Corzine. Unfortunately, once again, New Jersey voters let themselves get duped by a liberal machine hack. To put it bluntly, like a dog returns to its own vomit.
Where does the money from the cigarette tax go to?
** Is it used for people who do not have insurance but get lung cancer from cigarettes?
** Is the money used for Lung Cancer Research?
I would be happy to know that the cigarette tax money raised is being used to research a solution for lung cancer and NOT to plug a hole in the budget deficit.
stop smoking now and save you money.
buy cigarettes online and save money
kobe 11
off-white
supreme clothing
off white hoodie
yeezy boost 350
supreme clothing
travis scott jordan
golden goose outlet
off white jordan 1
kobe shoes
Post a Comment
<< Home