New York’s New Taxes A Foreshadowing For Rest Of Country

Americans better hide their wallets because here comes the government.  For right now, only the state of New York really needs to worry, but with all the bailouts and a new stimulus plan on the table and the incoming new president, we can all expect to be nickled and dimed in the future – the near future.

New York Governor David Paterson unveiled New York’s budget for the next year, a whopping $121 billion.  The problem with the budget is that it is underfunded by $15.4 billion.  In my household, when the monthly budget is bigger than the monthly income that means CUTS have to be made.  No eating out or movies for that month.  Maybe we eat more macaroni and cheese.  The government, particularly when under Democratic rule, does not react that way.  Oh no, they cannot make cuts.  They make increases to programs and then steal more of our money.  For instance, Gov. Paterson is raising welfare payouts.  To be fair, there will be layoffs for some government employees and Paterson is going to cut school aid (whatever that means).

Here are just a few examples of the new fees and taxes that the Governor is proposing as reported by the NY Daily News:

  • An “iPod tax” that charges state and local sales tax for “digitally delivered entertainment services” – in other words, that new Beyonce song you download.
  • State sales tax at movie theaters, sporting events, taxis, buses, limousines and cable and satellite TV and radio.
  • Costlier driving with the repeal of the 8-cents-per-gallon sales tax cap on motor and diesel motor fuel, plus and increase in the auto rental tax.
  • Tuition increases at SUNY and CUNY, $620 and $600 a year respectively.
  • A 50 cent tax on cigars. The current tax is equal to 37% of the wholesale price, or 34 cents a cigar.
  • No more sales tax break on clothes and shoes worth $110 or less, except during two weeks a year.
  • Higher taxes on wine, beer and flavored malt beverages. He would also impose an 18% tax on non-nutritional drinks like soda.
  • The rich would pay more for luxury items through an additional 5% tax imposed on cars costing more than $60,000, aircraft costing more than $500,000, yachts costing at least $200,000 and jewelry and furs costing in excess of $20,000.
  • In addition, a host of a fees, including those related to motor vehicle licensing and registration, parks and auto insurance, would go up, as would various state-imposed fines.
  • I’m placing bets that sales revenues will drop in New York as people flee to nearby states like New Jersey to do their shopping.  Governor Paterson used the old standby, “We’re going to have to take some extreme measures.”  Haven’t we been hearing that for months from government officials?  Too bad those drastic measures don’t include them making drastic cuts to their wasteful programs. 

    Of course the liberals in New York are sour on these increases because they want the rich to foot more of the bill.  Billy Easton, executive director of the Alliance for Quality Education said, “We will be fighting this tooth and nail. We think it is irresponsible to make this level of cuts and not ask the wealthiest New Yorkers to help ease the pain.”   This level of cuts?!  What a joke!  Although it is fascinating how New York will be going after the schools rather than welfare and other unnecessary programs.  Let’s see how many fecal paintings they are sponsoring in museums and then judge whether the wealthy need to pony up some cash.


    One response to “New York’s New Taxes A Foreshadowing For Rest Of Country

    1. New Yorkers pay the highest property taxes in America. New York property taxes are 78% higher than the national average.

      New York schools outside of New York City spend more per student than any state in the nation – an estimated $18,768 in 2008-09.
      New York’s per student spending is more than 50 percent above the national average.

      The New York State Commission on Property Tax Relief recently released their final report with recommendations on how to fix this.
      It is an excellent report that is very interesting reading. You can read it here.

      Read the report and spread the word. New York needs to start implementing these changes now.

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