How To Rescue A Failing Economy, New York Style

If you do not live in the state of New York, be thankful. If you do live in New York, hold onto your wallets because your governor is trying to pick your pocket.

It’s for your own good though.

 

NY Daily News

Gov. Paterson’s proposed $121 billion budget hits New Yorkers in their iPods – and nickels-and-dimes them in lots of other places, too.

“We’re going to have to take some extreme measures,” Paterson said Tuesday after unveiling the slash-and-burn budget.

The following is but a sampling of some of the tax increases New Yorkers can look forward to if the proposal is given legislative approval.

 

    • 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 really is a brilliant plan.

Make items more expensive so that fewer people are making purchases.

With less people making purchases more businesses will struggle. With businesses struggling some are sure to shut their doors. With businesses closing more people become unemployed. With more people unemployed, fewer people are purchasing goods.

Rinse, repeat.

 

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2 Responses

  1. that is very stupid in all honesty, i don’t think taxes are the answer at this financial time, it’s crazy calling it the ipod tax too >.< Thumbs up!

  2. Agreed! I think someone should tell Paterson that New Jersey shopping malls are close by.

    I’m also convinced it’s a conspiracy (see my post: http://www.wefoist.com/2008/12/17/new-york-luxury-taxes-conspiracy/), clearly Ashley Dupre (Spitzer’s friend) was in cahoots with Evian and Netflix. I hope Coke and AMC have counter-attacks ready.

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