There's one for you, nineteen for me
June 12, 2003
How do Dubya's latest tax cuts affect us, New Yorkers in our mid 20s? Jason writes:
I got my latest paycheck, with President W's new tax cut already factored in. $2.52. In a great line from the world's greatest comedy, Trading Places, "I think I'll go to the movies. By myself."
Let's do a little math, shall we?
$2.52 times 15 remaining paychecks for the year equals $37.80
Thanks to budget cuts from the Federal and State governments, the NYC tax sales tax rate is rising by 0.25%. On average, I probably spend about $500 per month on taxable goods, so that's $8.75 back right there. Plus, since NY State re-enacted it's tax on clothing, that's an additional 6.5% on another $100 per month left in the year, which is $45.50. So, this tax cut is, essentially, costing me $16.45 for the rest of the year.
Thanks Mr. President, you really helped!
For those of us with no income, we only feel the bad effects. Tax cuts are service cuts
and will cost our generation most of all.
Posted by Andrew Raff at June 12, 2003 01:21 AM
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Time to adopt some children!
I realized that when calculating these numbers, I actually used NJ's sales tax rate, not NY's. So, since NY State taxes at 7.5%, not 6.5%, I actually will be paying $7 more, or $23.45 in total.
Or, I could just stop buying clothes.
Good news! The city plans to end its sales tax on clothes under $110 within a year: http://www.wnbc.com/money/2267537/detail.html
"The City Council approved a hastily drafted bill Thursday to abolish the sales tax on purchases of clothing and shoes costing less than $110 next year rather than in 2005.
"The council voted 50-0 to end the city's 4.38 percent portion of the tax on such purchases starting next June 1, the same date the state is scheduled to end its share of sales tax on those items. The combined city and state sales tax rate is currently 8.625 percent.
"The council also voted Thursday to hold two tax-free sales weeks on clothing purchases less than $110 -- around Labor Day and Martin Luther King Day -- before the sales tax on such items is abolished."
Don't forget the additional costs of the increased subway fare and the increased property tax...