'Sin' Taxes On The Rise In New Jersey

LOGAN TOWNSHIP, N.J. - Wanna light up? Oor drink up? Get ready to pay up, thanks to New Jersey's new budget!

The rationale is simple. The Garden State pulls in nearly $50 million dollars in added tax revenue by raising the cost of products that - let's face it - we can do without, reported Fox 29’s Bruce Gordon. But don't tell that to border-area business owners or their customers.

When Governor Jon Corzine signed the state's $29 billion dollar budget into law, he touted the spending cuts, but said little about the tax increases that helped balance the budget: a 25-percent increase on alcohol, a 17-percent hike on wine and a nearly 5-percent jump on a pack of cigarettes. Jersey's cigarette tax is the second highest in the nation.

The budget even raises the tax on lottery winnings over $10,000!

Customers understand why politicians look first to raising so-called "sin taxes," and say they'll adjust their buying habits accordingly.

But some in this border region wonder whether the Garden state will actually raise more money by being less competitive with their neighbors.

The cigarette tax takes effect July 1. The tax hikes on alcohol and wine kick in August 1.

Oh, and beer drinkers? Grab a cold one - no tax hike for you.