GM and the Tax Bludgeon

As if I needed another reason to be unhappy with General Motors…

I recently came across a story on CNN Money which reports that the CEO of GM, Dan Akerson, supports a buck-a-gallon increase in gasoline taxes.

Well, of course he does. It would help push up gas prices thereby increasing sales of vehicles with higher fuel efficiencies. Vehicles like the Chevy Cruze or Volt, perhaps? Like too many companies, especially many of the larger ones, competition does not come down to innovative products. Instead, it comes down to innovative lobbying. And that’s a shame.

One part of CNN’s story jumped off the page:

Akerson said that a higher gas tax, including an immediate 50-cent-a-gallon increase to take advantage of recent declines in gas prices, would probably make some of his Republican friends “puke.”

Sorry, Mr. Akerson. It’s not just the Republicans who would be unhappy. Try talking to the average person who would face higher prices for groceries, for commuting, for… well, just about everything.

General Motors, here’s a suggestion. Spend that lobbying money on the design and manufacture of an affordable and reliable car that gets excellent mileage. I might just buy one. No increase in the gas tax necessary.

No, wait. I won’t buy one. But somebody else just might.

Crunchin’ the Taxing Numbers

Ahhh, property taxes.

I’m not surprised by the latest report by the Empire Center for New York State Policy. Turns out that Schenectady County has property tax rates significantly higher than the average for the Capital District. A number of communities in the county are higher than the state average.

It’s just another indication of the fiscal crisis in Schenectady County.

If you happen to drive into my hometown of Rotterdam, you might just notice a sign that says “Welcome to…. ROTTERDAM a nice place to live.” Yes, sometimes the phrase seems a bit underwhelming. But it is a statement that has grown on me. I do live in a wonderful town. I am running for county legislature because it is a nice place to live. So is Princetown. So is Duanesburg.

But I find myself coming back to these tax rates. If they continue, more and more families will not be able to raise their children in the county.

And that’s why I’m running: to help make Schenectady County an affordable and safe place for families to raise their children!

I’ll continue crunching the numbers. More on this topic down the road…

Designating a New York State Tax

Hot on the heels of New York’s official veggie debate, I looked up New York’s state symbols. I found an extensive list on I Love NY’s website.

Now, I knew about the state bird, (bluebird). I enjoy the crunch of the state fruit, (apple). I had heard about the state flower, (rose). And I bet the state tree, (maple), isn’t always happy with the state animal, (beaver). My dad’s favorite would be the state fish, (trout). But who knew that we have a state shell, (bay scallop)?

So… I had a thought. (Ignore the warning siren going off in your head.)

There’s still something missing. I think we should designate an official “state tax.” After all, the state is famous, make that infamous, for its high rates of taxation. It could be anything: income, property (I know it’s local – but they are driven higher by state mandates), sales, gasoline, cigarettes, or one of those crazy taxes masquerading as a “fee.” It could even be that good ol’ soda tax. Yeah, it disappeared with the new governor, but something tells me that it’ll be back someday, soda being evil and all.

Better yet… you pick:

Taxing while Driving

I always “love” to see another creative idea for taxation. According to TheHill.com, this time it’s the Congressional Budget Office (CBO) who is recommending the tracking of “Vehicle Miles Traveled” (VMT) and taxing them.

Yeah.

I’m too annoyed to say much else right now.

Yeah.

Since it’s late, and because tomorrow will be a busy day of allergy shots, journalism work, PowerPoint creation, and a Media Ethics paper, I’ll read the CBO’s report later.  Assuming this isn’t an early April Fool’s joke, I’ll write about it more in a later post.

Nah. The April Fool’s joke would be a government agency seriously proposing cuts to taxes and spending.

G’night.

April Fools’ Day and Sales Tax

Had to check my calendar today. For a moment I thought it was April Fools’ Day.

You see, I read this in a story from Fox23 News:

New York state is bringing back its sales tax exemption on clothes and shoes…

Wait a minute, I need to check the calendar again. Nope, it still says that it’s March 19th, not April 1st. Let me pinch myself. -ouch!- Nope, not dreaming.

Can it be true? New York State is actually reducing a sales tax?

Before we get too enthusiastic, let’s look at some of the facts. There used to be an exemption on sales tax for clothing and shoes priced below $110. That exemption disappeared last year. After all, the state needs our money. It’s due to be reinstated in April but with a limit of $55 per item. Supposedly, the $110 exemption will be restored in 2012. (Although, according to the Times Union‘s Capitol Confidential blog, that may not be the case.)

Then I realized that the trigger date for the exemption changes is, you guessed it, April 1st!

I sense an April Fools’ joke coming on.

Another Proposed Tax Bike. I Mean Hike.

I’m a bit late to this party, but then again so is New York State. More on that in a moment.

Do you own a bicycle? Does your kid? Well, if Assemblyman Michael Den Dekker gets his way, you’ll be paying a few bucks more. Say it with me… “Money Grab!”

We were due for another ridiculous revenue raiser. For more details on this latest one, check out Rick Karlin’s post on the Times Union’s Capitol Confidential blog:

…NYC Democratic Assemblyman Michael Den Dekker is calling for a $25 bicycle registration fee ($50 for commercial) bikes as a revenue raiser.

Don’t forget about the five bucks you’ll pay each year to renew the registration. However, it sounds like it’s not the most popular legislation.

Phew. I’m glad that common sense is still hanging on by its fingernails.

What I didn’t realize was that New Jersey already went through this in January. A state lawmaker proposed a similar law only to withdraw it a day later after a justifiable uproar. I came across a story about it on NJ.com. It jokingly recommended skipping the bikes and putting the license plates on the kiddos themselves. Want a laugh? Check out the “Ledger Live” video embedded in the story.

Me… I’ve already got a bicycle-sized license plate with my younger son’s name on it. Can I get a break on the registration fee?

Better yet, let’s just revert back to some common sense.

3/3/11 Editorial update: I forgot to credit my friend and classmate Darren with sending me a link to a story about this crazy bike registration idea. Thanks Darren!

Billions of Planets

According to an AP story in Sunday’s Times Union, there are billions of planets in our galaxy. More importantly:

At least 500 million of those planets are in the not-too-hot, not-too-cold zone in which life could exist.

Intriguing thought, huh?

It’s good to know that when our property tax rates officially reach “astronomical” levels, at least there are plenty of planets that we could escape to.

We’d just have to overcome that whole traveling faster than the speed of light thing. But that’s gotta be easier than convincing a majority of our current politicians to lower taxes, right?

A Homeowner’s Privilege of Taxation

So, you want to buy a house in New York State. You’ll pay, and not just for the house. Nope, you’ll also pay a chunk o’ change at your closing, much of it in taxes, before you even step across the threshold as a homeowner.

My current favorite: the mortgage recording tax. Ummm, yeah. Just what is that?

Here’s the answer from the New York Department of Taxation and Finance website:

New York State imposes a tax on the privilege of recording a mortgage on real property located within the state. In addition, New York City, Yonkers, and various counties impose local taxes on mortgages that are recorded in those jurisdictions.

Ooooh. That just warms my heart. I’ve got the “privilege” of recording a mortgage. Goosebumps.

When I bought my house, I got to pay a few hundred bucks to the state for the privilege. It gets better. Schenectady County, where I currently own a home, is one of those jurisdictions that collects additional mortgage recording taxes.

What, are the mortgages “recorded” with gold leaf lettering? I sure hope there’s more to this than a simple money grab.

But to you future Schenectady County homeowners, be not afraid. Why? Because the County Legislature had the opportunity tonight to do away with county’s portion of the tax. In order to continue collecting the tax, the legislature needed to pass a resolution approving its continuation. Certainly they would take the opportunity to reduce taxes and make the county more appealing to future homeowners.

The resolution passed 12-2, along party lines. The tax continues on.

Sigh.

No More Soda Tax Proposals?

I stumbled across a report on WNYC’s news blog that New York’s brand new Health Commissioner said we won’t be seeing the return of the soda tax.

Sounds good to me. No surprise, I’m no fan of the soda tax, or fat tax, or whatever you call it. (You can read previous blog posts here and here.)

Assuming that this pans out, I’m already relatively pleased with Gov. Andrew Cuomo’s administration, at least fiscally.

Cuomo has come across in fairly fiscally conservative fashion lately.  I certainly hope he follows through on his promises to reduce government spending and cut taxes. Maybe he’ll even reduce the extent of government intrusion into our personal lives.

Here’s hoping. But I’m not holding my breath, either.

Now, I’m off to the gym to lose weight the ol’ fashioned way: exercise. Believe it or not, it actually works. No tax required.

A Second Slice at the Bagel Tax

The tax madness just never stops.  A few months ago I wrote a post about the complexity of bagel taxation.  Hopefully, you’ve had time to digest it.

 

Bagels and.... tax?

But just when you think the confusion surrounding the taxation of prepared vs. unprepared foods has been cleared up… you stumble across a story like this one by WNYT.

So… in the previous discussion, the Department of Taxation and Finance (DTF) was aggressively going after bagel shops that were not collecting sales tax when they should.

Now, we’ve got a Dunkin’ Donuts franchise collecting sales tax when they shouldn’t.

Many people, including a source for WNYT’s story, would blame the franchise because a store clerk made a mistake in charging customers sales tax when the sale should have been tax-free.

The heck with that.  I lay the blame squarely where it belongs:  at the creation and enforcement of ridiculous tax code.  The tax code is nonsensical.  You can buy a bag o’ sliced bread at the grocery store without paying sales tax.  But the moment you get your bagel sliced at your favorite breakfast nook… “ding” goes the sales tax cash register.

But that’s not the end of my rant.  Check out this portion of WNYT’s story:

It’s important to point out, Dunkin’ Donuts doesn’t pocket the extra money.  Because it’s charged as sales tax, it goes directly to the county and state.

So, let me get this straight.  If a business collects too little sales tax, the DTF comes after them.  If they collect too much, the money stays with the state and county.

Either way, the taxpayer foots the bagel bill.