New Jersey made headlines today after the state collected as much as $600 million from a tax amnesty. It looks like great news: the state is collecting extra money during a recession, and late tax filers are able to pay back the money they owe without getting bitten by high interest and fees.
The problem is the behavior this engenders. A quick look at their previous tax amnesties reveals the effect this kind of program has on New Jersey taxpayers:
Continue reading “New Jersey Cleverly Increases Back Taxes by 1000%”
States are facing unprecedented budget deficits, as sales, real estate, and income tax revenue evaporate. From California to New Jersey are raising taxes, cutting benefits, and scrambling to borrow the money they need to pay the bills.
As CNN reports on tax hikes:
Already, 16 states have taken this unpopular step this fiscal year, and another 17 have proposed tax hikes for the coming year, according to the Center on Budget and Policy Priorities, a policy group. In many cases, they are making small increases in specific taxes, rather than imposing a broad rate hike.
Continue reading “What do State Tax Hikes Mean for You?”