New Jersey to Get Double Taxed on Tobacco, Already 2nd Highest in Nation

New Jersey has a serious budget deficit, and is planning on raising the cigarette tax again. Even though they already have the second highest state tobacco tax in the nation, as shown here in the State cigarette Excise Tax Rates And Rankings. This means that with a 10 cent per pack state tax added to the 62 cent per pack Federal tobacco tax, that smokes in New Jersey will go up 72 cents per pack. Or $7.20 per carton. With the price of cigarettes already high here, this added tax will will make smokers really feel the pinch.

With Governor Corzine facing a $7 billion state deficit, you can bet he is looking for any possible thing to tax that comes along. According to this Bloomberg article by Terrence Dopp Corzine is also looking at a few other things to tax.

"The governor may propose raising income taxes on state residents earning $250,000 or more by 5 percent and eliminating property-tax rebates for all but the elderly. Other options being discussed include a 10-cent-a-pack boost in the $2.58-a-pack cigarette levy and higher taxes on liquor and wine, Senate Majority Leader Stephen Sweeney said last week."

He is also considering other rather drastic but necessary options. Desperate times calls for desperate measures seems to apply here.

"Corzine said he is considering eliminating as many as 7,000 jobs among New Jersey's 70,000-member workforce if unions don't agree to a wage freeze and 12 unpaid days off during the fiscal year starting July 1, which he estimated would save $400 million. "

It looks like all of the state governments are scrambling to get their budget deficit in order by making new taxes and raising old taxes. Keep an eye out for a lot of existing taxes to be scrutinized to see how much more money they can squeeze from our pockets.

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