Tuesday, December 16, 2008

Economy Crusher: New York Proposes 88 New Taxes

Don't let David Paterson couching some of these taxes as fees distract you. A tax is a tax is a tax. And this will drive even more of the tax base out of New York.
Gov. Paterson released a $121 billion slash-and-burn budget Tuesday morning that slams New Yorkers with 88 new fees and taxes - even on their iPods.

Calling the budget the "greatest economic and fiscal challenge of our lifetimes," Paterson acknowledged his spending plan cuts deep.

But he said the pain must be shared to deal with the fallout from the Wall Street collapse.

The budget will cost the city an estimated $650 million in aid.

But it's the $4 billion in new fees and taxes that are sure to aggravate everyday New Yorkers, who would be paying more for a host of services:

* 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.
This reminds of the scene in Goodfellas when Henry Hill explained how if you were in bed with the mob, it didn't matter if business was slow, you'd better pay up.

Download a new iPod song? Fuck you, pay me!

Having an after-dinner cigar? Fuck you, pay me!

Want to have a soda? Fuck you, pay me!
Then finally, when there's nothing left...

...when you can't borrow another buck from the bank...

...you bust the joint out. You light a match.
David Paterson's playing with matches.

What Paterson and these tax-and-spend liberals never fail to realize is by taxing these items consumers will just go elsewhere to get them. Who in their right mind would buy a car valued over $60,000 when they can go to a neighboring state? Is he so stupid to think people are going to buy yachts in New York?

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