Corzine proposes allowance tax for kids

In an effort to bolster the states revenues, Corzine has proposed an "allowance tax" for the children in New Jersey.

"For too long, these kids have been getting a free ride," he said at a media conference.

"Our children are entering the adult world ill equipped to deal with the financial realities of life in New Jersey," the governor said, adding that most state residents can't afford to pay their property taxes.

He attributed the problem to the carefree attitude that children have with regards to spending.

"Responsible taxpaying children grow up to be responsible taxpaying adults, and that is what New Jersey needs," he said.

The proposal comes on the heels of a very disturbing study that shows most kids spend their allowance money on frivolous things like candy, gum, comics, toys.

Local ice cream man Mel Tycones said, "It's madness. Every day I sell out of snow cones, chaco-tacos and candy cigarettes. Kids these days will sometimes spend their whole allowances on candy and ice pops. They have no financial restraint!"

The new proposal relies upon the parents to verify the amount of the allowance furnished.

The tax liability for children would be assigned upon the child's income level. The proposal outlines a three tiered system, the higher the child's income, the higher the tax liability.

Wendy Penders, a fifth grader who gets an allowance of $26 a week, falls into the bracket with the highest tax liability.

"This new plan would cost me about 5% of my income," she says. "That doesn't sound like a lot to most people, but when you're only making $25 a week, it really hurts."



Editors note: The author does not verify the accuracy of the information provided.