Put aside the fact that Gov. Paterson is going back on his word, and can’t seem to make up his mind. That is bad enough, but his reasons for advocating such a tax are dubious as well. It’s not the first time he’s mentioned such a plan. Back in February the Legislature rejected his proposal to put an 18 percent levy on sugary soft drinks– a tax he claimed would raise $500 million annually. He tried to sell the tax was a public health measure. Paterson claimed his point was to increase awareness for health information of foods consumed by children. It is nanny-state thinking at its worst.

 

Increasing so-called “sin taxes” or excise taxes for budget shortfalls is also something to be concerned about. New York’s budget currently has a projected three billion dollar overspending problem. Excise taxes do not generate significant revenue and will do nothing to solve this problem. Higher taxes on certain goods increases smuggling from states with lower taxes which results in declining consumption. Declining consumption makes this revenue source ever shrinking and volatile. In the end, these types of taxes lead to future tax hikes as lawmakers become reliant on budgeted revenue. Lawmakers then find themselves scrambling to raise taxes rather than tackle necessary reforms.

This kind of action is completely incomprehensible. Why, exactly, Governor Paterson finds this hypocrisy to be acceptable is quite beyond me. In a time of recession, the US does not need tax hikes. If he is going to support tax increases, he should at least be honest about it--instead, he lies by saying that he does not support tax increases. Just another textbook example of liberal policymakers.
>> KAE Friday, October 23, 2009 3:50 PM Report Comment

If the Gov. was serious about no new taxes, he should have put it in writing with the Tax Pledge. Paterson is not only being dishonest, but is threatening one of the more economically unsound forms of raising revenue with the sin tax on soda.
>> Alex Friday, October 23, 2009 4:14 PM Report Comment