Comments on New York Governor's Proposed Large Scale Tax Increases

by John W. Wallace

posted 12/22/08

Governor Paterson's proposal to balance next year's budget by adding a whole new group of taxes and fees on individuals, families and small businesses, is outrageous. At the same time, he is also proposing cutting TAP tuition grants for middle class college students and eliminating STAR real estate tax rebates for homeowners.

If these proposed increases in taxes and fees are passed, New York's taxpayers and homeowners will have to cut back on their spending because the new taxes will mean anywhere from $1,500 to $4,000 less money in their pockets.

To make matters worse, while the Governor plans on taking this money out of the pockets of hard working taxpaying New Yorkers, he has proposed giving a raise to welfare recipients so they will have more money in their pockets to spend.

How do these new taxes and fees make economic sense? The average New York State homeowner and taxpayer is paying more and more in taxes and fees every year. In some cases, real estate taxes (even with the STAR program) have been rising at a rate of between 10% and 15% a year, or more. Now the Governor intends to keep expanding state government and spending more money by raising taxes on almost everything, including non-diet soda. The governor's proposal to eliminate the middle-class STAR rebate without also enacting a tax cap will increase the burden already borne by overtaxed New York homeowners.

I realize that New York State is in financial trouble and that Gov. Paterson is looking for new revenue sources, but looking at selective sources to raise revenues, including a tax on non-diet soft drinks, is not the answer. The Governor is using the possible health connection between non-diet soda and obesity, but I believe he's just looking for additional revenues in any way he can get it.

If that is the case, then why stop at non-diet soda? Why not tax cookies or Big Mac's? Maybe people should have an annual weigh-in at the DMV office and be taxed if they are over a certain weight. How about taxing people who exercise a lot because they use more oxygen than the rest of us? How about taxing the Governor, State Senators and members of the Assembly when they fail to pass a balanced budget on time?

Less get realistic. In the tough economic times we face, it would make more sense to cut spending, improve accountability measures to ensure our tax dollars are spent wisely. Our elected officials at the federal, state and local levels must be made to understand that the taxpayers' money is not unlimited. Giving welfare recipients a raise, while taxing the heck out of the rest of us is also not is not the answer.

I think it's time for Governor Patterson and State lawmakers to start doing what the rest of us have to do. Live within your means and don't spend more than you take in.