Belmont Club

December 17th, 2008 6:57 am

The taxman cometh

There’s an old story about setting your hair on fire and then trying to put it out with a hammer.  I forget the point. But Governor David Paterson of New York may recall the punch line now that he has proposed 88 new taxes to raise revenue in NY state, thereby seemingly negating the frantic economic stimulus that is being applied by other branches of government. The Daily News reports:

Movie tickets, taxi rides, soda, beer, wine, cigars and massages would be taxed under Paterson’s proposal. It also extends sales taxes to cable and satellite TV services and removes the tax exemption for clothes costing less than $110.

The problem with government is that it doesn’t actually make any money. It only spends it. As such it is perpetually caught between the desire to get its hooks on cash and the necessity to leave some seed corn for future harvests. This is called public policy.

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22 Comments

1. Ben:

I have yet to see a single government leader propose to cut spending with the same strategy the demand out of detroit: renegotiate overly generous labor contracts.

The idea of a government worker retiring with great pensions and health care at age 55 like New York MTA workers do, while private sector workers are asked to do more and more with less and less, is disgusting.

Dec 17, 2008 - 7:14 am 2. Gordon:

That rumbling sound you hear is another batch of corporations moving out, heading somewhere else to get away from this kind of thinking. If they don’t their employees will on their own.

Dec 17, 2008 - 7:21 am 3. Stones Cry Out - If they keep silent… » Things Heard: e45v3:

[...] A common error of today’s stimulus packages, they all raise taxes … which counter the intended effect. [...]

Dec 17, 2008 - 7:56 am 4. RWE:

Great quote from Lady Thatcher:

“The problem with socialism is that sooner or later you run out of other people’s money.”

Great Quote from RWE:

“Capitalism is what you get when you leave people alone. Socialism is what you get when you leave governments alone.”

Great quote from Graucho Marx:

“Outside of a dog, a book is man’s best friend. Inside of a dog it is too dark to read.”

Dec 17, 2008 - 8:46 am 5. Eric J:

If only there were some popular product that’s currently a drain on government budgets but completely untaxed, that could be made legal and taxed with minimal social disruption.

Dec 17, 2008 - 9:31 am 6. peterike:

If only there were some popular product that’s currently a drain on government budgets but completely untaxed, that could be made legal and taxed with minimal social disruption.

What? Only one?

Perhaps someday the idiots on the Left will realize that domestic oil production can shower them in tax revenues.

Meanwhile, I guess I get to enjoy all the new New York taxes. Hot dog.

Dec 17, 2008 - 10:13 am 7. Captain Ramen:

If only there were some popular product that’s currently a drain on government budgets but completely untaxed, that could be made legal and taxed with minimal social disruption.

Why, so it could end up like cigarettes? Or worse yet, it would put the government in a position of encouraging drug use so it could raise more revenue. I don’t care if someone gets high in their own house, but let’s get real here, most people that do it on a regular basis are lazy morons.

The biggest joke about the story (at least as reported in AP) is that the 1% budget increase is actually described uncritically as a spending cut.

Personally, I am at the point where I don’t give a damn anymore. Why are we wasting time trying to fix what is broken beyond repair? I feel that no matter what we do the whole damn system is going to fly apart (maybe I am more anxious than most because of the situation here in California).

I would rather spend my energy protecting my immediate family.

Dec 17, 2008 - 10:33 am 8. Eggplant:

Captain Ramen said:

“Personally, I am at the point where I don’t give a damn anymore. Why are we wasting time trying to fix what is broken beyond repair? I feel that no matter what we do the whole damn system is going to fly apart (maybe I am more anxious than most because of the situation here in California).”

For most of 2009, we’ll be focused on watching the ground rapidly approach while running around in circles shrieking “Help! Help! What’ll we do? what will we do?”. The main task in early 2010 will be to pull charred wreckage out of the crater and salvage what we can.

I ran the Google satellite program over Detroit. They’re right! A significant fraction of Detroit is empty lots. It’s amazing that we allowed our infrastructure to rot away like that.

Dec 17, 2008 - 11:43 am 9. RWE:

Eggplant:

It is not “us” allowing our infrastructure to rot. It is companies getting tired of The Local Gang holding them up and either going out of business or moving.

When GM built a new auto plant just south of Midwest City, OK in the late 70’s they deliberately did not allow anyone but the very top executives to transfer from other plants. Even white collar workers had to go down to the new plant and apply for jobs there in person. Now what does that tell you?

Go over an read this article at The Weekly Standard

http://www.weeklystandard.com/Content/Public/Articles/000/000/015/918gvijq.asp

Dec 17, 2008 - 12:14 pm 10. Eggplant:

RWE,

I agree with the sentiment expressed in the article that you linked. GM, Chrystler, etc. essentially committed suicide through years of crappy managment and allowing the UAW to walk all over them. I’m against a government bailout. A bankruptcy judge should force them to go through the Chapter-11 process, clear out their bad debt and terminate their labor agreements. There will be lots of pain as a result but it’s necessary and long overdue.

Dec 17, 2008 - 12:32 pm 11. rumcrook:

very sad. it is unreal how expensive it is for my extended family to live in NY. I have tried to get them to move. they wont.

property taxes on my home out west in colorado, around a grand a year. for a home valued at 172,000

my sisters home in new york valued at less than 100,000 costs her over 3,000 in property taxes. wheres the 3x in services?

why can my municipality provide all the same services for so much less??

Dec 17, 2008 - 12:57 pm 12. RWE:

Eggplant:

When I read that article I kept thinking about how Michael Moore still brags about how the UAW members in his family shut down their auto plants so many times - and how in that article the people in that little town in outback Georgia brag about starting up their auto plants.

And Moore is furious that the companies up and moved away, saying “they were making enough money where they were.”

Dec 17, 2008 - 1:11 pm 13. Captain Ramen:

A friend of mine tells me chapter 11 is unlikely because there will be no one willing to loan them the money during the proceedings. Is he full of it?

Dec 17, 2008 - 1:39 pm 14. Enscout:

WTSHTF the most desperate among us, those with hungry mouths to feed and that lack the wherewithal to grow their own; will resort to stealing from the ‘haves’. The well defended ‘haves’ will be the ones called upon to turn the tide - from a Robin Hood mentality to an all-out armed revolution against the standing government.

Dec 17, 2008 - 2:01 pm 15. Enscout:

Just a wild prediction…
If it comes to pass, I don’t expect to survive it.

Dec 17, 2008 - 2:13 pm 16. Triton'sPolarTiger:

Living in Fulton County, GA (Atlanta area) I’m on the hook for a pretty big chunk of property taxes considering the modest size of our home. It’s nothing like what NY gets, however. Mrs Triton and I have long enjoyed visiting NYC on vacation. All things considered, I think henceforth we’ll be spreading our limited travel dollars elsewhere.

Maybe on a daytrip for Korean BBQ in West Point, GA…

Dec 17, 2008 - 2:24 pm 17. RWE:

Triton: How about a trip to the 8th Air Force Museum outside of Savannah? They got their own B-47 outside.

And there is a nice little outlet mall about 30 miles south of there. And just a few miles inland from the mall is a bombing range where you can get to see A-10’s and B-2’s making low altitude passes.

Dec 17, 2008 - 4:00 pm 18. bogie wheel:

why can my municipality provide all the same services for so much less??

Rummy, it ain’t about providing services. It’s about keeping the players in cush. Including Cousin Sal and his no-show job.

When you look at it that way, a 3 mill tax could be considered getting off easy.

Dec 17, 2008 - 6:03 pm 19. Lifeofthemind:

First thing to do would be to cut every NY State employees wage rate by 20%. The second thing to do would be to eliminate all unfunded mandates that the state imposes on localities. The third thing to do is make it the law that state reimbursements for Medicare and other health programs would match the rates for the 5 largest states excluding NY. The fourth thing to do is to eliminate all the off budget borrowing authorities that have grown up over the last 60 plus years. Ever since Robert Moses discovered the scheme the balanced budget in NY has been a joke. The fifth thing to do is divide the state budget into three categories. First is public safety State police, prisons and the National Guard, Homeland Security and the State Universities. Those should stay at current levels except for a shift from Liberal Arts to Engineering and Hard science in the State schools. All state diplomas should come with a 2 year teaching commitment, additional years waived for Masters tied to Bachelors. The Second category would be real physical infrastructure, bricks mortar and concrete for roads, rails and bridges. That should increase 10% but with a tie in to vastly expanded training programs and a 20% cut from prevailing union wages, also a rewriting of work rules. Finally comes the social welfare agencies. They should be cut by 10% per year for the next 5 years. All in house EEO and HR departments should be consolidated and then replaced with outside contracted services.

Dec 17, 2008 - 10:51 pm 20. New York State Governor Proposes 88 New Taxes | The Blog of Record:

[...] New York state should’ve stuck to Eliot Spitzer: There’s an old story about setting your hair on fire and [...]

Dec 18, 2008 - 6:30 pm 21. The taxman cometh the stimulus leaveth:

[...] GM and NY… birds of a feather locked into crazy labor costs by political clout. [...]

Dec 19, 2008 - 2:13 pm 22. Snowflakes in Hell » Blog Archive » Quote of the Day:

[...] From Richard Fernandez: The problem with government is that it doesn’t actually make any money. It only spends it. As such it is perpetually caught between the desire to get its hooks on cash and the necessity to leave some seed corn for future harvests. This is called public policy. [...]

Dec 20, 2008 - 2:58 pm

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