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Posted by on Dec 15, 2008 in Uncategorized | 0 comments

New York To Raise Taxes On Furs, Coke

New York state has a $15 billion deficit and Governor David Paterson is turning to taxes to help bring in more revenue.

He will propose several new taxes on soda and luxury furs, among other items, and end taxes breaks on other items, The New York Times is reporting. The proposal, which totals $4 billion in taxes and fees, is scheduled to be announced Tuesday.

The soda tax is considered an “anti-obesity” measure. These taxes would force consumers would pay more for non-diet versions of Coke and Pepsi products.

Paterson is also advocating for eliminating the lower sales tax that is in place for clothing and shoes under $115 in order to bring in more revenue.

Consumers that purchase luxury goods would pay higher taxes on a variety of high-end products, like furs and boots, the Times reported.

It appears that, especially with this last move, that Paterson is targeting wealthy individuals for higher taxes. Though this is not a direct tax on the incomes of wealthy taxpayers, it does tax the products that they buy in a disproportionate number.

“You can’t tax $50 billion on New York’s wealthiest residents,” he said. “You are going to have to take it from other places and hopefully, if there were to be an income tax, it would be at the end of the process, not the beginning.”

New York Governor David Paterson

New York Governor David Paterson

The New York Times reports:

One element that Mr. Paterson left out of his budget was any broad-based tax increase affecting people in higher income brackets, a measure that some in Albany believed would be part of the plan. But ever since taking over as the state’s chief executive in March, Mr. Paterson has steadfastly opposed raising income taxes as a way to prop up the state’s worsening finances.

Higher taxes will also be imposed on health insurers. Addtionally, a number of fees will be increased, including services at the Department of Motor Vehicles and state parks. Tuition at the State University of New York and the City University of New York will also be increased.