A Tax By Any Other Name Still Stinks

In a speech to an assemblage of Long Island business leaders last week, New York State Governor George Pataki said he would not increase taxes because increasing jobs was the way to get New York's economy moving again. Was he playing with words or just plain lying?

As if it wasn't bad enough for Suffolk taxpayers that every single element of their property tax has increased this year already, now the state wants more of your money too, all the while blatantly stating it's not increasing taxes. It's typical government double talk. True the STATE won't be technically increasing your STATE INCOME taxes. It is just moving the responsibility to raise the money it used to contribute FROM YOUR STATE INCOME TAXES to local governments and institutions. They can take the blame.

Take for instance the situation at the South Huntington school district - a scenario that will occur in nearly every district in the county. On January 29th it narrowly (1,291 to 1,256) passed a $57 million bond referendum to make repairs to its buildings and buy busses. Another referendum offered the same night failed. 
Pataki's budget proposal gives this district 12.2 percent LESS aid this year. The district is losing about two million dollars. Where do you think the district will make up the difference? Property taxes. 

The Governor also proposes to bring back the sales tax on clothing. How does he then still justify his statement that he won't increase taxes? Is it because he's only bringing back an old tax, not creating a new one? A tax by any other name .....

In his speech, Pataki also bragged that because of existing income tax CUTS, some 20,000 people "were taken OFF the tax rolls altogether," and 40,000 more will come off this year. Is this how to handle a $12 billion deficit? 

Then there's Medicaid. I foolishly thought this was a federal program, paid for by the federal government and funded by our SOCIAL SECURITY TAXES. Not so apparently. Medicaid expenses, in New York, are paid half by the feds, 25 percent by the state and 25 percent by the county. In fact, increased Medicaid payments were one of the reasons cited by county officials for THEIR INCREASES IN TAXES this year. The county was lobbying for the state to pick up more of that bill, as is done in other states. But it didn't, did it? So you can probably expect county tax increases next year too.

Running the "best" government is tantamount to running the best shell game it seems. Who can move the responsibility to the other guy most effectively yet still keep all the perks and benefits of their own offices intact and continue to claim fiscal responsibility? Fiscal responsibility is CUTTING SPENDING in times of strife. No matter how hard it is. 

It's no surprise that government (that includes towns, cities, villages and counties) is the state's largest employer. If my business can't afford an employee, WE DON'T HIRE ONE. It's time the state took the same stance. If you can't afford something, you don't buy it. You don't just make your uncle pay for it.

The good news is that at least with the clothing tax, it will probably be a long time before anyone has to pay it. If the budget process runs as smoothly as it has in the past, it will be at least September before anything is passed which means you will have been able to buy this year's back-to-school clothes before the tax kicks in.