Never short on ideas for things to tax, lawmakers in New Jersey are considering a tax on tap water.
The proposal is being floated by State Sen. Bob Smith D-Middlesex, who is trying to say it’s not actually a tax but a ‘user fee’.
“It is a user fee based on volume,” Smith told Fox 5’s Chasing New Jersey.
It would add 10 cents for every 1,000 gallons of water a home uses. Smith says that will only add $32 a year to the “average” water bill.
He claims the money is needed to fix a crumbling water delivery infrastructure in the state. – READ MORE
[divider][/divider]The Laffer Curve, named after economist Arthur Laffer, works!
As the Curve predicts, increase in tax rates will tend to raise, rather than lower, actual tax revenues.
President Donald Trump’s tax cuts are becoming a case in point.
Despite the cut in tax rates — brought forward by the introduction, in February, of revised tax withholding tables — federal income tax revenues for the first half of 2018 are 9 percent higher than in the first half of 2017.
The difference comes to $76 billion of unanticipated revenue.
Because the Congressional Budget Office refuses to score tax cuts “dynamically” — that is to recognize the effect of the Laffer Curve, it had predicted an annual increase in the deficit of $139 billion. – READ MORE
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