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| Cooking the Goose |
2/5/2003 New Jersey proposes raising casino taxes Casino company shares dropped this week in the aftermath of New Jersey Govenor James McGreevey proposal to raise casino taxes to plug a US$5 billion deficit. The proposed 2 percent increase in revenue tax to 10 percent together with a suggested 7 percent tax on free rooms and meals negatively impacted on the shares of companies such as Harrah's Entertainment Inc. and Trump Hotels & Casino Resorts Inc. Since casino gambling was legalized in 1976, New Jersey, the second largest casino market in the US, has benefited from US$5.4 billion in state program aid. The change in the 2004 budget would lead to increased revenues of US$135 million for the state but opponents vehemently claim that it would halt casino development and lead to job cuts. This contentious issue has not been settled yet. Republican state Senator William Gormley, a casino industry proponent promises to oppose the governor's plan. Dennis Gomes, president of the Casino Association of New Jersey, sums up, "He'd be killing the golden goose." |
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