Mar 12, 2009 6:27 am US/Eastern
Gov. Paterson Gives 'Nuisance' Tax Plan The Boot
Under Avalanche Of Criticism And Plummeting Poll Numbers, Gov. Nixes Idea To Tax Basically Everything
Caution: Sources Say 'Millionaire's Tax' A Possible Alternative
NEW YORK (CBS) ―
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Governor David Paterson abandoned his proposed "nuisance tax" plan on March 11, easing the burden of millions of New Yorkers who are having a hard enough time as it is
Zack Seckler/Getty Images
It was music to the ears of New Yorkers.
Governor David Paterson on Wednesday announced a complete 180 on plans to impose taxes on things like downloading music or movie tickets.
It was a gigantic flip flop, one where Gov. Paterson used all of Harry Houdini's magic skills. With a wave of the wand the embattled governor made dozens and dozens of nuisance taxes simply disappear.
"We have been able to relieve $1.3 billion in taxes," Paterson said Wednesday.
Federal stimulus money made the abrupt about face possible, but there was also the hope that the governor's sinking popularity would get a boost.
"It really has disturbed a lot of New Yorkers … they just see it as inconvenient and frustrating that when they try to get to some of their leisure areas that they are taxed as well," Paterson said.
Given the boot are plans to tax iPod and digital downloads and put new sales taxes on movies, sporting events, taxis, limousines, cable television, satellite radio, cigars, beers wine and luxury goods like jewelry and furs. The so called 18 percent fat tax on sugared soft drinks is also out.
"We have always believed that working families are the backbone of the state and as such they need relief from the ever-rising cost of living in New York State," Assembly Speaker Sheldon Silver said.
CBS 2 HD spoke to several New Yorkers, who seemed to suggest it's about time the governor came to his senses.
"I'm glad he's not going to do it," said Neal Brown of Midtown. "I think a lot of the taxes were unfair."
"People have enough stresses right now. We need to be able to have a soft drink, listen to some music and make it through this hard economic time," said Robin Semple of West Brighton on Staten Island.
"The best way to do it is put one tax for the whole year and hopefully it covers everything else instead of nickel and diming us," added Doug Koch of Islip.
The state action will leave Mayor Michael Bloomberg with a budget hole of $150 million. He had hoped to piggy back on the state nuisance taxes.
That may be all the good budget news coming from Albany. There's still a $14 billion gap and sources tell CBS 2 HD that it could be filled with a "tax the rich" plan, which could also hurt some not so rich.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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