What a plan the New York governor and legislature has come up with.
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.
Isn’t New Jersey just across the river from New York. What keeps people from crossing the river to do their shopping?
Even with the cuts, the 2009-10 budget would increase a little more than 1%, the smallest hike since 1996-97.
Paterson said the state is facing a $51 billion shortfall over the next four years at a time when tax revenues are expected to drop 6.6% next year.
I would expect tax revenues to drop a little more. But that is just my uneducated opinion. I would be interested to see if New Jerseys revenues increase this next year. We shall soon see.
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