海角大神

If you drive a car , I鈥檒l tax the street.

If you try to sit , I鈥檒l tax your seat.

If you get too cold , I鈥檒l tax the heat.

If you take a walk , I鈥檒l tax your feet.

. . .聽 And if you don鈥檛 use your gift cards within two years, I鈥檒l聽seize them all.

(With apologies to the Beatles)

Pursuant to a law passed two years ago, the New Jersey Department of the Treasury will soon聽compel sellers to obtain the ZIP code of every buyer of a gift card in order to enable聽the state聽to聽expropriate the value of the unused card as 鈥渦nclaimed property鈥澛燼fter two years.聽聽The 聽law also applies to unused travelers鈥� checks and money orders聽in addition to聽gift cards

In聽2011 聽the state seized $79 million of such 鈥渦nclaimed property鈥澛� under the law.聽聽There was huge outcry and a lawsuit quickly followed that resulted in an injunction against the collection of ZIP codes.聽 But this injunction has just been lifted, although the case has not yet been resolved.聽 American Express has responded by pulling its gift cards from pharmacies, supermarkets and convenience stores.聽 Two third-party聽providers of聽 gift cards to malls, convenience stores and grocery stores,聽Blackhawk Network and InComm,聽have followed聽Amex鈥檚 lead and announced that they will stop doing business in New Jersey in June.聽聽The reason is that it is impossible to ensure compliance with the ZIP code mandate when the cards are sold by other parties.

Unlike gift cards issued by retailers, network-branded cards like American Express 聽and Visa gift cards have no expiration date, require no fees after purchase, and are acceptable in exchange virtually everywhere.聽 They operate as聽what Mises would call 鈥渟econdary media of exchange.鈥澛犅� People therefore are willing to hold them for聽extended periods of time as (imperfect) substitutes for cash.聽 Thus, based on the same reasoning, the state could declare that cash balances鈥搃n the form of currency and demand deposits鈥搕hat an individual accumulates over a two year period are also 鈥渦nclaimed property鈥� and subject to seizure.聽聽聽 Sound far-fetched?聽聽Well think again鈥搕he tax devouring politicians of New Jersey have already thought of that.聽 The same law mandates that banks transfer to the state all聽funds in New Jersey resident accounts that have been 鈥渋nactive鈥� for more than two years.聽 Of course you can appeal to the state to reclaim your 鈥渦nclaimed property鈥� but you must fill out a blizzard of forms and jump through bureaucratic hoops.聽 Good luck with that.

But there is聽occasionally聽聽a silver lining to聽government鈥檚 never-ending effort to mulct the taxpayers of more and more of their income and wealth.聽聽Sometimes a law is so聽egregious and 聽 tyrannical聽that it 聽causes the 聽carefully fabricated curtain concealing the nature of government聽to momentarily fly back聽聽to reveal聽the greedy, money-grubbing little men聽frantically operating the levers of power for their own benefit.聽聽 Then,聽the legitimacy of the state suddenly and magnificently dissolves and the public聽perceives聽government聽聽for what it is and always was:聽a band of thieves.聽聽聽This appears to be happening now in New Jersey, judging by the comments on聽the latest money grab.聽聽Here is a small sample: