Contact Attorney Richard Keyt: 480-664-7478|rk@keytlaw.com

New York Passes Cigarette Tax Increase

Congrats to New York.  It’s legislature just passed and Governor Paterson signed a new law that imposes a tax increase on cigarettes of $1.60 per pack.  People who purchase cigarettes in New York outside New York City will now pay $4.35 in taxes for every pack.  Those who buy cigarettes in New York City will pay total state and local taxes of $5.85 per pack.  The price of a pack of cigarettes purchased in New York now exceeds $10.  The brain trust behind the new tax increase says that NY cigarette taxes will produce $440 million in revenue.  Taxes were also increased on snuff ($.96/ounce to $2/ounce) and wholesale cigars (46% to 75%).

New Jersey Battles over Tax on Millionaires because Legislature is Unaware that the Tax would Reduce Tax Revenue

We’ve all heard the saying that those who do not know history are doomed to repeat it.  Unfortunately for all of us, politicians who do not know history are constantly repeating history to the detriment of their constituents.  Case in point, the Democrat controlled legislature of New Jersey.

The New Jersey legislature passed a tax on millionaires that was vetoed by Governor Chris Cristie.  Now the Democrats want to override the veto to impose a 10.75 percent tax on 16,000 residents with incomes above $1 million.  The dems claim the tax would raise $673 million that the state would use to pay $1,295 to 600,000 seniors to help them – get ready for this – pay their increased property taxes.  In short, NJ wants to tax the rich to offset taxes imposed on the not so rich.  It’s also known as redistribution of income.

Alas, the Democrats in the New Jersey legislature cannot remember or refuse to acknowledge what happened in the past when New Jersey raised taxes on the rich.  Law makers live in a dream world disconnected from reality.  They pass laws based on their beliefs without regard for the consequences of the laws.  Democrats believe and have faith that they must tax the rich because it brings in more tax revenue, even when it doesn’t.  They ignore the economic facts of life.

The article called “Wealthy Fleeing Tax Happy New Jersey – $70 Billion Lost 2004 – 2008” states”

“The exodus of wealth, then, local experts and economists concluded, was a reaction to a series of changes in the state’s tax structure — including increases in the income, sales, property and ‘millionaire’ taxes. ‘This study makes it crystal clear that New Jersey’s tax policies are resulting in a significant decline in the state’s wealth,’ said Dennis Bone, chairman of the New Jersey Chamber of Commerce. . . .

“Several years ago,

[an accountant] recalled, one of his clients stood to make $60 million from stock options in a company that was being acquired by another. Before he cashed out, however, the client put his home up for sale, moved to Las Vegas, and “never stepped foot back in New Jersey again,” . . . ‘He avoided paying about $6 million in taxes,’ he said. ‘He passed away two years later and also saved a huge estate tax, so he probably saved $7 million’.”

See “Maryland Raises Tax on Rich Who Bug Out so State Collects Less Tax.”  See also “Nike Founder & Chairman Says New Tax Laws Passed by Oregonians Should be Called Oregon’s Assisted Suicide Law II,” which discusses recent state tax increases approved by Oregon voters to increase taxes on the wealthy.

Arizona Economy Depressed, Unemployment High & State & Cities Bankrupt, but Loons Want Communter Rail Between Queen Creek & Downtown Phoenix

Arizona Republic:  “Imagine boarding a train in Queen Creek and arriving 35 minutes later at a restaurant on Tempe’s Mill Avenue, then hopping back on board for a 10-minute jaunt to Chase Stadium in downtown Phoenix.  That could be possibile someday, say transit planners with the Maricopa Association of Governments. . . . So, what’s the hold up? Money.”

MAG wants to spend money that nobody has so people in Queen Creek can dine on Mill Avenue and watch Diamondback games?  Why is that a reason to spend government money?  What about people in Queen Creek who want to shop at the Scottsdale Fashion Mall or go watch a Cardinals football game in Glendale?  Why doesn’t MAG want commuter rail for the people of Queen Creek for those destinations?  Why would government spend taxpayer money to benefit a select few businesses in Tempe and downtown Phoenix?  Aren’t there better ways to spend taxpayer money?

For more foolishness on this topic see “Regional planners recommend streetcar route in Tempe.”  Now the big spenders of other people’s money that the governments do not have justify building tracks down the middle of streets because the streetcars would connect to the money pit known as the light rail.  Note the bias for rail over buses.  Rail/streetcars would come by 2016, ten years before the cheaper, more efficient and flexible bus.  The story linked to starts:

“Regional transit planners are going to recommend to Tempe City Council that Tempe have a streetcar on Mill and Southern avenues by 2016 to connect the city to the light-rail. But Chandler may have to wait for a planned bus rapid transit route for the same purpose until 2026, according to a presentation by planners Tuesday.”

Arizona Spends $1.25M to Save 250 Squirrels

ABC News:  “Arizona is spending $1.25 million to build bridges for endangered squirrels over a mountain road so they don’t become roadkill and then monitor their health.  The money is being spent, officials said, because cars kill about five of these squirrels each year.”  If the bridges save five squirrels a year for the next 20 years, that is 100 squirrels saved at a cost of $12,500 for each furry little creature.

While the animal lovers are blowing money on squirrel bridges, “Unemployment inches up in Arizona.”

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