Gov. David Paterson and his Budget

[Acco]

New York Governor David Paterson announced his new $121 billion budget that would effectively introduce numerous taxes and fees, including taxes on iPods, soda and other items. What are your opinions of said budget? Below is an article, for those who haven't heard of the situation:

Link.

Spoiler Alert, click show to read: 

ALBANY - Gov. Paterson's proposed $121 billion budget hits New Yorkers in their iPods - and nickels-and-dimes them in lots of other places, too.
Trying to close a $15.4 billion budget gap, Paterson called for 88 new fees and a host of other taxes, including an "iPod tax" that taxes the sale of downloaded music and other "digitally delivered entertainment services."
"We're going to have to take some extreme measures," Paterson said Tuesday after unveiling the slash-and-burn budget.
The proposal, which needs legislative approval, did not include broad-based income tax increases, but relied on smaller ones to raise $4.1 billion from cash-strapped New Yorkers.
Movie tickets, taxi rides, soda, beer, wine, cigars and massages would be taxed under Paterson's proposal. It also extends sales taxes to cable and satellite TV services and removes the tax exemption for clothes costing less than $110.
"The governor is nickel-and-diming working class families," said Ron Deutsch, executive director of New Yorkers for Fiscal Fairness, an advocacy group.
State Conservative Party Chairman Michael Long warned that reinstating the sales tax on clothing and shoes will drive people to New Jersey, where they will also gas up their cars and pick up their wine, spirits and soda because the prices are less due to lower taxes. "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?"





Paterson's 2009-10 budget proposal represents only a 1% increase in total spending from this year's budget - the smallest increase in a dozen years. It also calls for:

• A 3.3%, or $698 million, reduction in school aid.
• $3.5 billion in health care savings, including reductions in payments to hospitals and nursing homes.
• Video slot machines at Belmont Park, more multistate lottery games and expanded hours for the state's Quick Draw lottery game.
• Layoffs for 521 state workers and the elimination of seven state agencies.

"This is where we are," Paterson told reporters. "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."
Paterson aides say the budget represents a net gain for New York City, but Mayor Bloomberg wasn't buying it. He said it could cost the city more than $1 billion, including a $600 million reduction in school aid.
"I don't know that 100% of it is going to go the classroom, but a large percentage of any reduction we get from the state will go to the classroom," Bloomberg said. "That will mean larger class sizes and fewer services."

I'll post my views in a little bit; what's your opinion?

[Soulghast]

This is just ridiculous. Taxing iPod's, beer and wine? Much better if they cut the budget.

[Viking Prince]

With Obama in the White House, how can any Democrat propose cutting jobs? If you do not cut jobs, you must tax the good citizens. The taxes are broadest and most effective at vaccuming up cash if they are new and not related to being employed. I do not like it, but I do understand it. Real liberals should also begin questioning if they are doing a "Tom Delay" on themselves with such antics.

[jankren]

How come iPods arent taxed? Its not grocery ...

[Icefrisco]

I like Paterson's policies. He is taxing industries such as soda which are always going to stay strong. I doubt a tiny tax on coke would put Coca-Cola out of business. However, any money would help my state because we're pretty much bankrupt.

Paterson is in general cutting back on state spending. From what I've heard he is really cutting wasteful school spending on "luxuries" such as scantron.