Paterson and his Budget -- Sad State of Affairs

by Gordon Cooper

From Broader View Weekly, March 13, 2009

As we New Yorkers look ahead at the upcoming pages of our 2009 calendars, we can be certain of a few red-letter days. First of all, we can be sure that eventually, maybe by mid-May, the salt will wash away from our roads, cars, sidewalks and vegetation. We can be sure that the robins will once again fly low over the green grass of our lawns, seeking worms and bugs and singing to us from sun-washed branches as they greet summer mornings. Undoubtedly, we will someday take the covers from our swimming pools and barbecues and enjoy some healthy summertime activities. So, you can see, we have many positive things to look forward to.

However, there will also be some dark days on this year’s calendar. There will be the day when Governor Paterson – yes, the governor who now holds the record for the lowest approval rating of any governor on record – will sign the 2009 – 2010 NYS budget. This will be a dark day for many reasons, and almost all of them are tax-related.

As we begin to learn some of the details of Paterson’s proposals we are learning more about his liberal views. The fact that Paterson had several scandals that had to be explained away shortly after his rapid rise to power, following the disgraceful exit of former governor and client number nine, Eliot Spitzer, I can overlook with a mere tsk, tsk and a head shake. After all, it seems it is becoming common policy for public servants to serve their own prurient interests before they serve the interests of the public. However, the changes in our daily lives that will come from the enactment of Paterson’s policies will result in more than a shake of my head; it will result in the shake-down of my wallet and bank accounts.

Some of the proposed changes in his budget will send taxpayers and small businesses heading for the Border States of Connecticut, Massachusetts, Pennsylvania and Ohio, or even across the International Border to Canada. And with the exit of these revenue creators will go the revenue needed to pay for these new plans and programs. If you don’t believe me, just drive east along I-86 and then south into any Pennsylvania gas station. You will be amazed to see how many cars with New York State license plates are lined up at the pumps and how many packs of cigarettes and cartons of beer are being purchased by the drivers of those cars. After Paterson’s proposed budget is imposed upon us, you will see them walking out with cartons of soda as well, as soon as they realize that the cheaper gas makes it worth the trip to save the extra 18% off the price of a soft drink.

Paterson seems to be following the failed policies of his predecessor, Mario Cuomo, who mistakenly believed that we could tax our way out of debt. It is funny that those who claim we cannot drill our way out of high oil prices somehow believe we can drill deeper and deeper into the taxpayers’ pockets and keep pumping revenue into the state coffers.

The fact that Paterson is proposing increases in welfare benefits while simultaneously increasing taxes on businesses and consumers of everything from music to Mountain Dew, indicates where his priorities and principles lie.

He has suggested an increase of 30 % in welfare benefits and a cut in school tax relief and tuition assistance. Now, let’s just look at these two items for a minute. Taxes have always been used for dual purposes by our legislators. Beyond the obvious goal of raising money for protection and services for the general public, taxes have also been used to promote and stifle behavior. Through taxes we either penalize bad behavior or reward good behavior. In this one example, we see welfare recipients being rewarded and students and taxpayers being penalized. What then, do you think, is the behavior being targeted? Should we believe that Paterson believes it is in our best interest to punish SUNY students with higher tuition, thereby driving them to consider out-of-state schools? The statistics show that once a student enrolls in an out-of-state school, she is less likely to return to her home state, taking with her the skills and income needed to expand our economy.

On the other hand, by increasing welfare benefits, we will reduce the incentives to remove numbers from the welfare rolls, thereby limiting the number of producers (income tax payers) and increasing the number of welfare consumers (income tax suckers).

Space and time does not allow me to expose more of the many misguided policies in this budget, but I do have enough words left to encourage you to call and write our state representatives and voice your opposition to this budget. As sure as the robin sings and the flowers bloom, taxes will always come, but while we have our voices, let us use them to make sure we have representation with our taxation.