Saturday, May 16, 2009

My 2009 $250 Stimulus Went to Increased Taxes

My 2009 $250 Stimulus Went to Increased Taxes

I was thrilled to obtain my 2009 stimulus award of $250 if only to help keep my head above water. I do not plan to really increase my spending anytime soon, but to try to whittle down my spending.

The first tax killer was made by the State of New Jersey on highway tolls. Depending how you interpret it, the NJ Turnpike Authority raised tolls on both the NJ Turnpike and the Garden State Parkway as much as 40 to 50% recently. The tolls were never cheap, but now they are excessive. And I believe there are additional substantial toll increases planned for 2012 and 2023.

The second recent tax killer was the federal tax increase on cigarettes that began on April 1, 2009 of about 62 cents per pack making the federal tax a total of $1.0066 per pack. The total tax on a carton of 10 packs of cigarettes in New Jersey is $38.50. The Governor of New Jersey is talking about another 12.5 cents per pack increase.

The third tax increase is the Unites States Postal Service increase in first class stamps from 42 cents to 44 cents that started Monday, May 11, 2009. Even with the price increases, Postmaster General John Potter told Congress in late March that even with the rate hike the post office will run out of money if it doesn't take drastic steps like eliminating Saturday delivery and temporarily reducing payments to a trust fund for retiree health benefits. He said the service faces a $6 billion fiscal year shortfall, in part because of the recession. The Post Office needs a new model to do business and to compete with United Parcel and Federal Express.

The fourth tax increase is an estimated $250 increase this year probably more on the real estate tax on my house including municipal, local schools, and county taxes. None of the three tax entities that form my real estate tax bill have ever in more than 3 decades have ever reduced taxes for the year or even were requesting zero tax increases for the year. They have always had their hand out for more money each and every year.

My 2009 stimulus award of $250 is dedicated to the famous sinkhole of taxes, but especially to new tax increases. I do not think that this was intended for the stimulus package. Congress, the President, Governors, state legislatures, mayors, town councils, and county freeholders should keep taxes flat if they cannot reduce them. It looks like the right hand does not know what the left hand is doing. How can the economy be stimulated when taxes are rising so quickly and to such high numbers eating away so much money that could be spent on purchasing things instead of being dried up in tax coffers.

The giant sucking sound is stimulus money going to pay newly increased taxes instead of stimulating the economy. All of our representatives are failing us.

I hope I receive another stimulus check next year or I believe I will be under water with my current bills and lifestyle with more tax increases this year and next. And I cannot swim. They also say that inflation is low this year, but it seems very high to me especially with the tax increases.

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