Wednesday, December 17, 2008

Tax Hike? Yikes!

As much as you try to forget, there's no denying that we are in the midst of a global financial crisis. So the powers that be, Governor David Paterson according to WWD have,"proposed an additional 5 percent sales tax on luxury goods, such as jewelry and furs costing more than $20,000, as one of scores of tax and fee boosts intended to close a widening gap in New York’s budget...Paterson is seeking to eliminate the sales tax exemption on clothing and footwear priced less than $110, but he would replace it with two one-week exemption periods on clothing and footwear purchases of less than $500. Municipalities would have the option of joining the state in offering the exemption."

I suppose the tax on luxury goods over $20 000 is actually reasonable, as people who are spending that much on one item probably could afford to pay the extra 5% in taxes. But the thing that really gets me is they are also proposing to get rid of the tax exemption on lower priced goods. This was always a great draw for visitors and myself to spend money in NYC, will that incentive now be gone? Personally I don't often spend more than $110 on nearly anything so save for handbags, jewelry and hair accessories don't have to pay tax on merchandise very often. The cost of living in NYC is high enough, will my sample sale finds become more expensive now too? My shoppaholic self has been trying to cut back in recent months, will this be just one more reason for me not to shop? Hoping this doesn't go through, or if it does, that NYC won't implement it! I don't think I would like the limit to be increased only to have a tax break 2 x's a year!!!

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