New Jersey Governor wants to Increase Taxes on your Favorite Vices

The taxation of Vices has a long history in the United States. The second tax ever enforced by the US Federal Government was the Domestic Tax on Alcohol and Tobacco Act of 1791.

Referred to by some Historians as President George Washington's Excess Tax, the purpose of the tax was to collect money for the Federal Government to pay debts from the Revolutionary War.

What was supposed to be a universal tax for the producers of alcohol to pass along the cost to their customers became a unique opportunity for abuse of power by Tax Collectors and Federal Inspectors.

Since the tax was paid in cash to federal revenue officers, many small business owners of distilleries were charged more than large, commercial distilleries due to individual interpretations of the law. Many farmers and frontiersmen were "cash-poor" in the 1790s and the aggressive collection by federal officials laid the groundwork for the Whiskey Rebellion.

Now 230 years later, the Governor of New Jersey is attempting to mimic President Washington's "good intentions" to find new revenues through taxation for the state government.

Details About Governor Phil Murphy's Proposed Tax Increases

During his final budget proposal in front of the New Jersey State Legislature in Trenton, Governor Murphy outlined the details of his proposed $58.1 billion budget for Fiscal Year 2026.

As part of his plan to create more property tax relief and extend tax credits, the New Jersey Governor wants to create more tax revenue to pay for K-12 School Funding and funding state pensions.

Governor Murphy has proposed increasing more than ten different tax revenue streams and one of the largest increases would be to what some experts call "Vice Taxes". This tax of non-essential goods would impact both consumers and businesses alike in a complicated economic environment.

Here Is A Summary Of Tax Increases The NJ Governor Has Proposed:

*Cigarette Tax Increase of at least 11 percent (At least 30-cent increase per pack)
*Alcoholic Beverage Tax Rate increase of 10 percent overall per gallon with varying rates increases for different types of alcohol
*Internet Casino and Sports Wagering Tax Increases up to 25 percent of revenues and profits
*Vapor Products Tax increase up to 200 percent on Vapor per mL

New Jersey has one of the largest tax levies in the United States and there is an interesting list of items that are taxed in The Garden State: