Years ago if you dropped your wallet there was a good chance that it would be turned in and the money would still be inside. On occasion I have found a wallet looked inside and delivered the missing property to the rightful owner. Something has happened to our society; today if your wallet is lost do you really expect to get it back?
Can things get worse? Unfortunately the answer is yes. Today your money can be missing before it even leaves your wallet. What you could buy yesterday will cost you more today. Last night the money in your wallet lost buying power and nobody will go to jail for it. Effective today new taxes go into place that will take away your buying power; things will just cost you more so you will get less for what you have to spend.
Sales tax in Connecticut will increase from 6% to 6.35% and it will now be charged on more items such as:
- Valet parking provided at any airport;
- Yoga instruction provided at a yoga studio;
- Motor vehicle storage services;
- Packing and crating services;
- Motor vehicle towing and road services, and livery services;
- Pet grooming, pet boarding services, and pet obedience services;
- Services in connection with a cosmetic medical procedure;
- Manicure services, pedicure services and all other nail services;
- Spa services.
- Clothing and footwear under $50;
- Nonprescription drugs and medicines, and smoking cessation products;
- Cloth or fabric for noncommercial sewing, and yarn for noncommercial use.
You may know how much money you have but you’ll have to plan on buying a little less, it just will not go as far as it once did. Celebrating the Fourth of July may have gotten just a bit more expensive for some folks as the cigarette tax has gone to $3.40 per pack and the tax on alcoholic beverages has increased by 20%. If you are planning a get away weekend remember room occupancy tax also increased from 12% to 15%. Have fun, just not so much may be the new motto for Connecticut this weekend.
That is some of the changes for July but hold on to your wallet because August will see the State Income Tax take more money out of your paycheck to make up for the income tax increase that is retroactive back to January 1, 2011. Your property tax credit has also been reduced so plan on a higher tax bill to the State next April. Even inheritance tax has increased so death is no excuse for not paying higher taxes.
A new wallet would be taxable, even if you have no money to put in it.