RSSSpitzer’s Tax Increase Isn’t Saving New York
J.J. Jackson* | February 21, 2008
New York Gov. Spitzer is learning the hard way that when you tax people you don’t tend to increase your chances of getting out of debt. Late last year, Gov. Spitzer essentially raised taxes on residents of the state by demanding that taxes be collected on internet purchases from people in the state.
New Yorkers going Christmas shoppingonline at Amazon.com will find an 8.375% surprise at the virtual cash register, courtesy of Governor Spitzer, who is moving aggressively to collect Internet sales taxes that have gone widely unenforced.Under a new policy, major electronic retailers, such as Amazon.com, will be required to collect sales tax on all purchases from New York. The policy, based on a novel legal theory, could hasten the end of the Internet’s era as a duty-free marketplace if other states follow New York’s lead. With the policy, New York immediately took the lead among states that are seeking to tax online commerce.
“I’d say this puts us at the front,” one state tax official, who requested anonymity, told The New York Sun.
This of course is a de facto tax increase because before there was no tax and now there is. However the plan hasn’t worked. In fact the state’s deficit is just getting bigger:
The Spitzer administration on Sunday said that the latest economic forecasts show a growing threat of a national recession and declining tax revenues in New York that will deepen the state’s 2008-09 budget deficit by $384 million.To fill the projected gap, Spitzer proposes $147 million in lowered state spending in health care. He would also save $237 million in reduced growth in funding for agencies; prepay a pension obligation to cut interest costs; and require tighter management of overtime pay and nonessential services, said Spitzer budget spokesman Jeffrey Gordon.
But more taxes should have solved this problem right? Wrong! Obviously it hasn’t.
Hey, here’s a hint. It’s the liberal, socialist spending on welfare programs and wasteful and unnecessary government STUPID!
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Time and again liberals keep proving that they will raise taxes and raise spending and running up deficits. But won’t care. The people will keep voting for them anyway.