Bloomberg Taxing Shoppers Away
New York City Mayor Michael Bloomberg‘s proposed sales tax increase has New Yorkers steaming mad – and many are planning to vote by putting their purchasing power in neighboring states with lower sales tax rates.
The new Bloomberg budget proposes a sales tax increase of half a percent, which, when added to a state tax and transit tax, would lift the total rate to 8.875 percent, one of the highest in the country.
Clothing, which has long been a tax-exempt item in New York City, would also fall to the tax axe.
The New York Post reports that many New Yorkers are already planning to buy clothing and other items in neighboring New Jersey, with its 7% sales tax, and Connecticut, which has a 6% sales tax rate.
At a press conference announcing unveiling the budget, Mayor Bloomberg said, “Is this a good tax? No. None of these taxes are good taxes.”