New York Governor Paterson is proposing roughly a 15 Percent tax on Non Diet Soda drinks. So if I bought a Coke, I will pay the tax, but not if I purchase a Diet Coke.
It is estimated that this tax will generate roughly 404 Million Dollars for the NY State Government. Gov. Paterson is trying to off set an estimated 15 Billion Dollar deficit.
It should also be noted that New York City is also struggling. Each resident of New York City owes an estimated $7,153 dollars. (Philadelphia is second with $4,771 owed per resident.)
The States and Cities do not have the same luxury as the Federal Government. They don’t have the Federal Reserve that can just print money out of nothing to pay for their debts.
I am sure the “analysts” will all give reasons to why this is happening. The economy is bad… Businesses are leaving the state or city…. The Moon is made out of cheese… The simple truth is: These Governments created budgets larger than their tax base revenue can compensate.
So now government institutions are finding “creative” ways to tax the public. I, personally, would not have a problem if this “fat tax” was going straight to health care programs. However, I suspect it is not. I believe it will just fall into the bureaucratic wasteland known as the New York State Treasury.
There is a debate whether or not these kind of taxes are good. The Cigarette Taxes really opened the door on “Taxes that try to influence behavior.” The Health Care professionals are loving this idea because they argue that this will encourage healthier behavior. New York residents are opposed to this tax.
I have mixed feelings about these kind of taxes. However, I do not approve any tax that will just be wasted by the government. I do believe that governments should reduce their budgets instead of taxing more.
I first noticed this story on Fox News. I could not help to notice as they did the reporting, there was a section of the segment where the camera just followed fat people around. Sad reporting, I think.
I predict over time we will continue to see other “creative” taxes that government of all levels. Obama has promised to cut middle class taxes, and perhaps he will. However, what “creative taxes” will be introduced to off set the amount of money the government will be spending under his administration. Beware of the “Carbon Tax!”
You will be taxed by the amount of your “Carbon Footprint” you leave behind. The model proposed by Al Gore just does not work. CO2 is needed as much as Oxygen. Plants need it to thrive. We know that Climate Change is natural. NASA has reported on their website that the polar caps on Mars and Pluto are shrinking as well. I doubt a Soccer Mom in California driving a SUV is causing Mars’ polar ice cap to melt.
HOWEVER… Before the comments come in and saying I am a big oil supporter. Not true! I have argued on the podcast we can and need to go to a Solar Power economy. I am all for going more green. However, we do not need a carbon tax to do it.
So the moral here…. Beware of “creative” taxes!
Lambo
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2 Comments
The use of so-called “sin” taxes to fund government should be stopped immediately. Let’s take the big one – tobacco. Government makes the case that tobacco use costs the government a ton of money due to increased health-care costs. If tobacco is so horrible – why is it legal at all? If the government is going to allow a product to be marketed – then that should be the end of it. I don’t want the government trying to dictate my behavior. If a product is legal, then I have a right to purchase and enjoy it if I choose. When you tax something you are going to lessen the demand for the product by increasing its cost to the consumer. You a penalizing a business (that pays taxes, by the way) that is producing a legal product.
It started with tobacco and alcohol. Now it is drinks with sugar. Where is it going to end? When will people say enough is enough? When it hits something you enjoy? If we are going to tie everything back to healthcare costs – then sports should be banned. Do you know much it costs to treat sports related injuries every year? Computers should be banned – do you know how much carpal tunnel injuries cost? Motorcycle – forget about it. Or if we want to stick fat-taxes – how long until we have a french fry tax? Cake tax? Ice Cream Tax? Is red meat bad for you? Must have a steak tax. This must end.
Hey Dobie,
Thanks for replying… I should have earlier, but I really can’t think of anything to say or add to your post.
Lambo