How To Solve A Budget Crisis – By New York State
We here in the Empire State are facing a budgetary crunch in the coming year. Some estimate that there will be something like a $51 billion shortfall over the next four years while tax revenue is expected to decrease 6.6% over the same time. This is mostly related to the fact that, during the stockmarket boom years, the legislature spent money like drunk dudes at a bachelor party. They also continued their ongoing effort to make New York the most unfriendly state on the east coast to do business in. Predictably, with the crash of the stock market and the plummeting real-estate prices (and, therefore, real estate taxes in the city that directly pay for the transit system) the state has no money.
Also predictably, after mismanaging the budget to the point the state is about to fall apart, there’s no chance of reigning in spending. Back in November, Governor Big Dave (who I like, by the way) called a special legislative session to work out some budget cuts and, shockingly, the legislature spent the day finger-pointing and yelling at each other instead of cutting any spending. The day ended with no budget cuts and with the legislature and governor still claiming progress was made. Only in politics can you meet for a specific purpose, not even come close to that intended purpose, and claim that you did what you intended to do and people will believe you. It’s amazing.
So, in true New York political fashion, the answer is to raise taxes as much as possible. Big Dave has suggested the following to close the budget shortfalls:
- An “iPod tax” that charges state and local sales tax for “digitally delivered entertainment services” — to note: New York is already the first state to charge sales tax on online purchases. Now there’s a new tax on top of that. On top of news that the recording industry will no longer be mass-spamming lawsuits, can you say “back to downloading?”
- State sales tax at movie theaters, sporting events, taxis, buses, limousines and cable and satellite TV and radio — I’m sure the dying satellite radio industry will be happy to hear that people are trying to make it more expensive. Isn’t it amazing that the merger of XM and Sirius was attacked as “unfair business practices” but the terrestrial radio lobby using the government to kill satellite radio is perfectly acceptable business practice?
- 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 — the current car rental tax is 5%.
- Tuition increases as SUNY and CUNY, $620 and $600 a year respectively — remember this next time any state politician claims to be for “education.” Remember the caveat, kids… we’re OK with education as long as you go in to five figures of debt to get it.
- 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 — you may be poor… you may be out of a job… but dammit, you can pay extra to clothe your kids.
- Higher taxes on wine, beer and flavored malt beverages. He would also impose an 18% tax on non-nutritional drinks like soda — now you’re attacking me where I live.
- 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 other news… this doesn’t already exist.
- 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 — We pay $40 to the state every two years for a sticker that says we’re allowed to drive our car. This is on top of the fee to renew your license every 4 years. It’s also on top of the $20 you have to pay every year to have your car inspected.
- Toll increases on the bridges, tunnels, and Thruway — note: the tolls for the Thruway, which were supposed to disappear in the mid-90s, have been raised twice in the last three years.
- Enact tolls on the East River crossings — these are the bridges that connect Manhattan to Brooklyn. Tolls to get between different parts of the same city. Only here.
On top of all this, the Metropolitan Transit Authority (the entity that runs the subway, bus, and rail system) is expected to face a $1.2 billion budget shortfall next month. Somehow or other, an authority which has monopoly control over all the transit in New York City just can’t make money. The base subway fare could rise to as high as $3, while unlimited-ride monthly MetroCards could surpass $100.
After all of this, Paterson had the balls to say: Just like thousands of families across New York, our State government needs to tighten its belt and limit spending to what we can afford. Shouldn’t the latter happen before the former? Instead of addressing this, our media has been much more willing to report SNL’s unflattering portrayal of him rather than, you know, taxing the bejesus out of everyone in the state.
At least California offers nice weather… which is their version of having the common courtesy of giving their constituents a reach-around. Is there any reason to live in this state anymore?
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