Friday, October 7, 2016

Latest Forecast, 3Q16: 2.1 percent — October 7, 2016

Latest forecast: 2.1 percent — October 7, 2016, dynamic link:
The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2016 is 2.1 percent on October 7, down from 2.2 percent on October 5, 2016.
The forecast of the contribution of inventory investment to third-quarter real GDP growth fell from 0.28 percentage points to 0.24 percentage points after this morning's wholesale trade report from the U.S. Census Bureau. The forecast of real government spending growth fell from 0.1 percent to –0.1 percent following this morning's employment release from the U.S. Bureau of Labor Statistics.
The Trainwreck
The Chicago Tribune's View

Critics warned people not to hop aboard, that disaster was inevitable. But the president, his allies in Congress and lots of big insurance companies assured everyone that, even though they couldn't see the blueprints, they had, in fact, designed an unsinkable ship of government-run health care.

Now, billions of dollars and 17 failed co-ops later (actually 18, now, from an original 23), the captain and crew of USS Obamacare are demanding that everyone stay below-deck and continue bailing out their sinking ship and the insurance companies taking on more and more red ink in Obamacare exchanges.
New Jersey To Increase State Tax On Gasoline


Later, 6:14 p.m. Central Time: there's a lot more to this bill than simply an increase in oil prices. What little I know of it suggests this is a very, very good bill. It will raise $32 billion for highway infrastructure for the state of New Jersey over the course of 8 years, and half of that will come from the US government on a 1-for-1 matching grant. That is huge.

In addition, it eliminates New Jersey's "death tax." Right now, New Jersey has an estate tax that kicks in at a measly $625,000. That "death tax" is eliminated in this bill.

Finally, let's see what this costs an average commuter in New Jersey:
  • annual mileage: 20,000 miles
  • average mpg: 30 mpg
  • gallons of gasoline/year: 750 gallons (rounded up generously)
  • additional cost in gasoline tax: $0.23 x 750 = $175/year or $3.50/week -- about the cost of a Starbucks coffee one day each week on the commute 
I don't have a dog in this fight, but it seems any whining over this increased gasoline tax is ill-placed, considering that it simply brings New Jersey in line with other states' gasoline tax. 

Original Post
"Hikes it 23 cents." 

From Tax Foundation, July, 2015, state gasoline tax rates among the Central Atlantic States, New Jersey was the lowest:
  • Massachusetts: 26.5 cents
  • Rhode Island: 34 cents
  • Connecticut: 40.86 cents
  • New Jersey: 14.5 cents
  • Delaware: 23 cents
  • Maryland: 32.1 cents
  • DC: 23.5 cents
New Jersey had the 49th lowest gasoline tax nationwide.
  • Alaska, at 12.25 cents had the lowest state tax among all US states.
  • Pennsylvania, at 51.6 cents was the highest. 

No comments:

Post a Comment