Posted by
Dave on Saturday, February 03, 2007 6:52:21 PM
Jon Corzine Steals from Children
…and teenagers and adults.
In July 2006 Governor Corzine gave the residents of NJ a gift; one that the residents of NJ neither wanted, nor asked for…a sales tax increase. Not only did Governor Corzine raise the sales tax 1% from 6% to 7%, but this past fall items not previously taxable are now subject to sales tax. Among them:
- Downloaded music and video (e.g. iTunes)
- Shipping and handling charges
- Flooring and carpeting installation
- Storage space
- Tanning, massage and tattooing
- Data processing
- Limousines
- Health, shopping and other club membership fees
- Parking garages and lots
- Non-clothing cleaning services
- Landscaping
- Magazines and periodicals
- Investigation and security services, such as security alarms and armored cars
None of this should come as a surprise to the voters who elected Jon Corzine. In 2004 as a U.S. Senator he was rated Liberal on Economic Policy with a rank of 79 by National Journal. This means that Senator Corzine voted more liberally than 79% of other members of congress. (Source: http://www.vote-smart.org/issue_rating_detail.php?sig_id=003484M)
Now, why do I say that Jon Corzine steals from children? My nephew and one of my nieces both received iTunes gift certificates for Christmas. Prior to the tax increase a $10 gift certificate or card would have purchased 10 songs on iTunes at $0.99/song. However, this holiday due to the new sales tax, that same $0.99 song cost $1.06 so $10 only purchased 9 songs. The loss due to the tax increase grows with the value of the gift card. Here’s an example:
|
|
# of Songs Able to Purchase |
|
|
Gift Value |
Before Tax |
After Tax |
Net Loss |
|
$10 |
10 |
9 |
1 |
|
$20 |
20 |
18 |
2 |
|
$50 |
50 |
47 |
3 |
|
$100 |
100 |
94 |
6 |
|
$250 |
250 |
235 |
15 |
Governor Corzine’s tax increase has reduced the buying power of my niece and nephew, effectively taking money out of their pockets. Hence the tile of this article Jon Corzine Steals from Children.
Kids aren’t the only losers.
If the increase in the tax rate weren’t bad enough, the expansion of items that are subject to sales tax increases the costs of products and services for all.
I doubt Governor Corzine or the legislature in Trenton gave any thought to the impact on small business of the new taxes. Particularly small business like Landscapers who now have to obtain Sales Tax Certificates and put in place processes and controls to collect the new sales tax from their clients and then pay it out to the State of New Jersey.
Generally whenever a business incurs additional costs, that increase is passed on to their customers. The price of my gym membership has risen to reflect the cost of the new sales tax levied against it.
Is Anyone thinking of buying a car? A $20,000 car at 6% would have cost you $1200 in Sales Tax. Now at 7%, your tax burden is $1400. If you were buying a $30,000 car the increase due to the new tax rate will cost you an additional $300.00
Are we having fun yet?
Perhaps the voters of New Jersey will remember to properly “thank” Governor Corzine and the legislature in Trenton for this “gift” in the next State Election.