The proposed state budget

Governor David Paterson appears to be attempting to make New York a really miserable place to live, in an effort to shore up a $15 billion budget gap.

OK, that's a lot of money, I get it. But among Paterson's proposed measures are 88 new taxes and fees, along with service cuts.

There are some definitely reasonable measures. Upping sin taxes (beer, wine, cigarettes, cigars) and removing the 8-cent-per-gallon gas tax cap, no worries. Upping the auto insurance surcharge from $5 to $10? OK, fine.

But then there's things like...

• Taxes on non-diet sodas, and other "non-nutritious" beverages like juices that aren't really juice (officially, less than 70% juice). You can't really call this an "obesity tax," as some news outlets have dubbed it, because, well, where's ice cream? Cheeseburgers? Bacon? And if you tax non-diet sodas, you get people drinking diet sodas. So, what, they get cancer instead of fat? That will do great things for the health care budget, eh?

• Taxes on services like gym memberships and hair cuts. This might be fine at upscale places, but people will leave gyms if their memberships go up $6 a month (adding weight to the health care problem), and you start pricing people out of some services – if you're generally only willing to pay $15 for a haircut, when taxes send it to $17, you're going to go every other month instead of every month, and your barber will close, meaning a decrease in the business tax base for cities.

• New license plates, which will cost you $25. Why don't you just up the registration fee? Why do I have to stand in line at the registry to exchange my tags, then notify my insurance company, the bank that holds my car loan, and my landlord?

• Raising fees for camping and parks in general and cutting services. Pay more for less? OK, sure!

• Increase fees for fishing licenses by $10 – but only if you're fishing for salmon or trout. Hmmm...if I don't know my fish, will can I catch one by accident?

• New fees for cable TV, satellite TV and satellite radio. I would be in favor of this if these weren't monopoly industries. If there were price competition, it would be easy to swallow an extra $5 or $10 a month (well, maybe $10), but since you pretty much pay $15, $50 or $99 for cable from the local company (at least in this area), you're held hostage for whatever the company wants to charge you to pay those fees.

• Taxes on bus and cab fares. First off, we should be rewarding people for taking public or mass transit, not finding new ways to make money from them. Second, you wind up diminishing public transit services. Centro, the local bus company here, isn't likely to raise their fare to $1.08 per trip, they'll make their rate $0.93 so the sales tax makes the trip $1. And losing even seven cents per passenger means they're going to have some trouble, especially when gas prices go up.

• Taxes on less expensive clothing and shoes. Many states charge a luxury tax for some items (I remember growing up that it was a $70 item you had to pay taxes on in Massachusetts), and in New York, $110 is the demarcation point. You don't pay taxes on on a $109.99 dress, nor on a $3.99 t-shirt. Maybe you lower that threshold to $50 or something, but eliminate it all the way and you have retailers who make their livings on selling $3.99 t-shirts closing up because people are now buying two shirts at a time instead of three, taking away fully a third of their income.

• Taxes on entertainment, like movie tickets, tickets to sporting events, and movie, music and book downloads. I'm sure the anti-piracy firms will love the last bit. When you jack up prices, you encourage stealing of intellectual property.

The budget proposal also includes cuts to SUNY hospitals, increases in tuition at SUNY schools, a removal of a tax incentive to renters in New York City, an eight-fold increase in the cost of taking a civil service exam, and large increases in professional fees for certifications for physicians, lawyers, social workers and others.

And for just a brief second, let's talk about one of upstate's big problems: Brain Drain. Do you see that list of stuff up there? A lot of it hurts younger folks, and that means that once they finish high school or college, they're gone, to some place they can afford to live.

I don't think this budget is going to pass in this form, but if it does, I think we're going to start seeing more problems at ground level – more housing foreclosures, more businesses closing up shop, more people leaving the state.

At some point you have to realize, it's not just a hole in the state budget, it's a hole in people's pockets, and holes in people's pockets means holes in New York – as a whole.

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One Comment

  • Posted 26/12/2009 at 09:22 | Permalink

    And still no millionaires tax… I had such hope for Patterson, but he’s turning out to be just another rich politician beholden to his wealthy buddies.

    Great post.

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