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Wednesday, September 7, 2011

Taxes Up In Smoke Or Fumes?

Good morning, Blogolanders! This morning, The Times of Trenton ran a front page article on the vast amount of money New Jersey loses in tabacco tax revenue because Trentonians (mostly) drive across the river and purchase their tabacco at any number of discount smoke shops in Morrisville. This quite true, BUT... What does the Commonwealth of Pennsylvania lose? Have you ever noticed the number of vehicles with Pennsy plates in local gas stations? Gas is much cheaper in Jersey than in Pennsylvania and you don't have to pump it yourself! It would be interesting to know how much Pennsy loses in gas tax revenue. And then there's clothing which is tax free in our fair state. How many people from Morrisville drive to Quakerbridge Mall to get school clothes? I was over at Quakerbridge yesterday and noticed a fair number of cars with Pennsy plates. In the end, it's probably a wash. Avoiding taxes has always been, and probably always will be, a problem for the states especially when citizens are close to state lines. My late husband had an aunt who lived just over the Massachusetts border in New Hampshire. Most of her family lived in Massachusetts. Eunice frequently snapped, "The only time I see some of my relatives is when they run out of liquor!" Massachusetts has a high tax on alcohol; New Hampshire does not. The only way to solve this problem is to have a federal tax, but that ain't gonna happen. No state would willing give up the right to tax. So each state will simply have adjust to reality. Stay dry.

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