Gov. David Paterson unveils dire New York State budget that includes new taxes, layoffs and cuts
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.
The last “yacht tax” just about put the boat-building business out of business. And didn’t raise an extra dime. In fact, it cost the government money.
According to a study done for the Joint Economic Committee, the tax destroyed 330 jobs in jewelry manufacturing, 1,470 in the aircraft industry and 7,600 in the boating industry. The job losses cost the government a total of $24.2 million in unemployment benefits and lost income tax revenues. So the net effect of the taxes was a loss of $7.6 million in fiscal 1991, which means the government projection was off by $38.6 million.
Government “management” is nothing but unintended consequences. My advice? If there are any publicly traded boatbuilding companies left in New York, short them.
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Paterson also proposed a “fat tax” on non-low-calorie soda.
In unrelated news, one of the local talkers had a state senator on the air this evening. This guy - didn’t catch his name, so I’ll call him Senator Joe Shitforbrains - really wants a popular election of the President. The electoral college was a tool for another era. But that would take a long time and a lot of work, so he’s got a proposed end-run around that pesky Constitution: a compact among as many states as he can get, to all throw their electoral votes to whichever candidate wins the popular election (among those states). I’m sure it never entered his head that NY (despite hemorrhaging population) is still a large state, with a really large metro area.
It’s times like these that make me so proud to be a New Yorker.
A luxury tax? On jewelry and furs? Where’d they learn economics, Monopoly? What’s next: a special tax on silk top hats and spats?
Here are some ideas for taxes on the truly rich:
- Douche tax on guys who buy sports teams to look cool.
- Any building named after a living person.
- 50% tax on all “modern” art. 100% if it’s an “Installation”.
- 1000% Historical Validity tax on any Oliver Stone film to cover the cost of re-educating the public and all future generations.
SteveF, the Soros people are pushing that one. [See]
…effectively turning the country into Illinois or New York, entirely determined by a few major cities.