Sources close to Governor David Patterson of New York say that he will propose 4 billion in new taxes and fees to close a 15 billion dollar gap in the budget. What will be taxed? Coke, Pepsi, furs, and boats; all of the stuff a growing boy needs.
ALBANY — Gov. David A. Paterson will propose a $4 billion package of taxes and fees on a range of items, from sugary soft drinks made by Coca-Cola and Pepsi to luxury items like furs and boats, when he unveils his plan to close a deficit that has ballooned to $15 billion, people with knowledge of the plan said on Sunday.
Typical liberal, spend way too much, then try and close the gap by taking more of the peoples hard earned money. Gives you an idea what Barry is going to do next year. He'll try and explain that the Bush administration has left so much of a deficit that his only recourse is to raise taxes, or institute fees of some kind or both. Patterson and Barry are both of the same school of thinking; raising taxes means more revenue for the government. The only problem with that is that tax revenue actually goes up when taxes are cut. Patterson needs to try and fix the deficit by cutting taxes on luxury items, not by raising taxes. It gets better though:
Higher taxes will also be imposed on health insurers and a sales tax exemption on clothing and footwear under $115 will be eliminated, though the administration will propose a two-week holiday for goods under $500, under the budget the governor will introduce on Tuesday.
A number of fees will be increased, with users of the Department of Motor Vehicles and the state parks bearing much of the burden, people with knowledge of the plan said. Tuition at the State University of New York and the City University of New York will also be increased.
So let's see, health insurers will be hit, and sales tax exemption for items under $115 dollars will be disposed of. Meaning middle and lower income families will bear that burden. And fees such as DMV, state parks and college tuition will be raised. So basically everybody that buys soft drinks, has health insurance, drives a car, visits a park, or goes to college will have to come up with 4 billion dollars for the state government.
But don't worry, it's not all bad news; the governor does have a few initiatives that he is planning to increase, like, you know, welfare.
The most significant move was a proposed increase to welfare grants for the first time in 18 years, though more money would not be made available until the beginning of 2010. The administration plans to seek a 30 percent increase over three years, with the eventual cost of the increase exceeding $100 million a year.
The basic welfare grant would eventually rise to $387 a month from $291 for a family of three, or $3,492 per year, where it has remained since 1990. source: New York Times
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