Governor Of New York State Reveals Massive Budget Crisis
Chances are, if you live in New York you've already heard the good news. Governor David Paterson has just unveiled the New York State budget that calls for new taxes and layoffs.Interestingly, some of the new taxes that the budget calls for are for things like digital entertainment services (read iTunes downloads) that up till this point have been free from state sales tax. They're going to tax your iPod.
The Governor has been quoted as saying, "Maybe we should have thought about this when we were depending on what we thought was inexhaustive collections of taxes from Wall Street. And now those taxes have fallen off a cliff." Yeah, maybe.
Even so, raising taxes on transactions that are being made with businesses that aren't even in your state is unlikely to raise the money needed. Raising taxes never increases revenues. Now, instead of chasing business away, they'll begin to chase consumers (you and me) away too. When asked about the budget State Conservative Party Chairman Michael Long said "You're sending notice to the people of New York that we really don't want you here," Long said. "The governor proposed flat spending, but why not actually cut the budget before raising taxes and fees?"
On a national level this kind of behavior is understandable from the left. However, at the state level this is really quite puzzling. The state cannot control certain key variables, not the least of which is the ability of the populace to cross state lines and find more affordable alternatives. While die-hard New Yorkers may not move away in large numbers at first, many will commute to New Jersey to purchase goods, services, and fuel. State revenues will almost instantly decrease.
This budget is unlikely to be favorably received by liberals or conservatives, however, as education will be hit harder than anyone. New York needs a savior.
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