"Knowledge will forever govern ignorance

 and a people who mean to be their own governors

 must arm themselves with the power which knowledge gives."

Wednesday, March 22, 2006

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.


At 9:53 PM, Anonymous Bob said...

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.

At 8:16 AM, Blogger PN said...

Great minds think alike! It appears we both noticed the same anomaly at the same time. I have a similar post.

At 1:00 PM, Anonymous Anonymous said...

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.

At 1:06 PM, Anonymous Anonymous said...

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.

At 2:15 PM, Anonymous Paul said...

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.

At 3:02 PM, Blogger njgalaxie73 said...

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.

At 12:02 PM, Anonymous Anonymous said...

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.

At 8:24 AM, Anonymous cigarettes said...

stop smoking now and save you money.


Post a Comment

<< Home

 Contact Us

  • Email Us
  • Blog Roll Us!



  • Atom Feed
  • Bloglines
  • Feedburner
  • Feedster
  • Add to Google
  • Add to My MSN
  • Add to My Yahoo
  • News Is Free

    Recent Posts

  • New Jersey Budget Fiscal Year 2007
  • When a 49 Percent Increase In School Aid Is Called...
  • Carnival of the New Jersey Bloggers # 44
  • A Gentleman Sets the Record Straight
  • Corzine Scraps Sales Tax Increase in Favor of "Soa...
  • Happy St. Patrick's Day
  • Revenue-Raisers
  • Betsy's Page
  • Corzine’s Budget Plans: Plus Why Taxes Matter
  • Tell Corzine No Tax Increases - Cut Spending


  • November 2004
  • December 2004
  • January 2005
  • February 2005
  • March 2005
  • April 2005
  • May 2005
  • June 2005
  • July 2005
  • August 2005
  • September 2005
  • October 2005
  • November 2005
  • December 2005
  • January 2006
  • February 2006
  • March 2006
  • April 2006
  • May 2006
  • June 2006
  • July 2006
  • August 2006
  • September 2006
  • October 2006
  • November 2006
  • December 2006
  • January 2007
  • February 2007
  • March 2007
  • April 2007
  • May 2007
  • June 2007
  • August 2007
  • September 2007
  • October 2007
  • November 2007
  • December 2007
  • January 2008
  • February 2008
  • April 2008
  • November 2008
  • January 2009
  • August 2009
  • September 2009
  • February 2012

    Online Journals

  • National Review

  • Opinion Journal

  • Real Clear Politics

  • Weekly Standard

  • Blog Roll

  • A Blog For All
  • Althouse
  • Ankle Biting Pundits
  • Barista of Bloomfield Avenue
  • Betsy's Page
  • Blue Crab Boulevard
  • Blogs For Condi
  • Bob the Corgi
  • Brainster's Blog
  • BuzzMachine
  • Captain's Quarter's
  • Cinnaman
  • Coalition of the Swilling
  • CWA-NJ
  • Dino's Forum
  • Daily Mail
  • Don Surber
  • DynamoBuzz
  • eCache
  • Exit 4
  • Fausta's Blog
  • GOP Bloggers
  • Instapundit
  • Joe's Journal
  • Kate Spot
  • Kausfiles.com
  • Little Green Footballs
  • Michelle Malkin
  • More Mnmouth Musings
  • Parkway Rest Stop
  • Patrick Ruffini
  • Polipundit
  • Power Line
  • Right Wing News
  • Roger L. Simon
  • The Blue State Conservatives
  • Riehl World View
  • Red Jersey
  • Right, Wing-Nut!
  • Sid in the City
  • Tiger Hawk
  • The Truth Laid Bear
  • Tim Blair
  • Wizbang

  • Sid in the City

    Majority Accountability Project


    New Jersey Blogs


  • 11th and Washington

  • A Blog For All
  • A Planet Where Apes Evolved From Man?!?
  • Armies of Liberation
  • Atlantic Highland Muse
  • Attack of the 15.24 Mete

  • Barista of Bloomfield Avenue
  • BeLow Me
  • Big Windbag
  • Blanton's and Ashton's
  • Blue State Conservatives
  • Burning Feathers
  • BuzzMachine

  • Clifton Blogs
  • Coalition of the Swilling
  • Cobweb Studios
  • CoffeeGrounds
  • Constitutional Conservative
  • Confessions of a Jersey Goddess
  • Corzine Watch
  • Crazy Jackie
  • Cresting Acrocorinthus
  • Cripes, Suzette!

  • Daniella's Misadventures
  • Did I Say That Out Loud
  • Dojo Mojo
  • Dossy's Blog
  • Down the Shore
  • DynamoBuzz

  • eCache
  • Enlighten-NewJersey
  • Eye On Hoboken
  • Exit 4
  • Exit Zero
  • Extreme-Psychosis

  • Fausta's Blog
  • Fausti's Book Quest
  • Fractals of Change
  • Frenchtown NJ Blog

  • GiggleChick
  • Gregg Gethard's Amazing Personal Journey
  • goethe re scape

  • Hoboken Rock City

  • IamBillPower
  • If this is paradise, I wish I had a lawn-mower
  • Imaginary Therapy
  • Inadmissible Evidence

  • Jersey Beat
  • Jersey Perspective
  • Jersey Side
  • Jersey Style
  • Jersey Writers
  • Joe's Journal

  • Karl's Corner
  • Kate Spot

  • Laughing At The Pieces
  • Likelihood of Confusion
  • Liss Is More

  • Mamacita
  • Mary's Lame Attempt at Fame
  • Media in Trouble
  • Michael Carroll
  • Mister Snitch!
  • MucknMire
  • My Life as a Rabid Blog
  • My New Jersey

  • New Jersey Eminent Domain Law
  • NJ Conservative
  • NJ Fiscal Folly
  • New Jersey For Change
  • New Jersey Weblogs
  • NJ Spoken Word
  • Northeast Corridor

  • Parkway Rest Stop
  • Philly2Hoboken.com
  • Poetic Leanings
  • Poor Impulse Control
  • Professor Kim's News Notes
  • Property Tax NJ

  • Rain Angel
  • Riehl World View

  • Shamrocketship
  • Shipwrecks
  • SloppyDawg
  • Sluggo Needs a Nap
  • SmadaNeK
  • Static Silence

  • Tami,The One True
  • Tammany on the Hudson
  • Tequila Shots For The Soul
  • The Art of Getting By
  • The Center of New Jersey Life
  • The Daily Fry
  • The Duc Pond
  • The Jersey Shore Real Estate Bubble
  • The Joy of Soup
  • The Mark(ings) of Zorro
  • The New Wisdom
  • The Nightfly
  • The Opinion Mill
  • The Pink Panther
  • The Political Dogs
  • The Rix Mix
  • This Full House
  • Tiger Hawk
  • Tomato Nation
  • Toxiclabrat
  • Twisty

  • Unbillable Hours
  • Usdin.Net

  • Where Is The Remote
  • Wine Goddess

  • Xpatriated Texan

  • Links

  • NJ Governor
  • NJ Legislature
  • Bob Menendez Information

  • Blog Rings

  • Blog Explosion
  • Blog Directory
  • Blogsnow
  • Blogwise
  • Blogstreet
  • Blogshares
  • Blogarama
  • Blog Digger
  • Daypop
  • Globe of Blogs
  • Blog Search Engine

  • Ecosystem Status

  • Who Links Here