Pubdate: Thu, 01 Apr 2010
Source: Queens Tribune (NY)
Copyright: 2010 Tribco Inc.
Contact:  http://queenstribune.com/
Details: http://www.mapinc.org/media/1394
Author: Michael Schenkler

NEW YORK STATE'S BUDGET WOES SOLVED WITH A SIN TAX

(April 1, 2010) No, this is not an April Fool's column.

It is as serious as I usually am when I talk about New  York State
government.

I've been watching the jokers in Albany for so long  that perhaps I'm
beginning to think like them.

It's like this: the Dems in control -- my party -- have  started
focusing on a series of "revenuers" to fix  what's broken in the budget.

Now we all know what's broken. The folks in Albany  spend lots more
than they take in -- it's that simple.  All they have to do is stop
spending what they don't  have and bingo: a balanced budget.

But no, they have all these special interests to take  care of, so
they can't cut spending by too much; they  come up with revenue
enhancements, surcharges, tolls,  fees -- and they'll even, very
occasionally, call it  taxes -- or some new fangled concept.

You know, "a rose by any other name...?" Well, this is  "a tax by any
other name..."

But what exactly is Albany's latest approach to revenue  enhancements
- -- new sources of funding (taxes)?

Government Taxes Sin

Well, they have bollixed up the Aqueduct Racino -- a  project they
have been working on for almost a decade.  After announcing in 2002
that revenue from video  lottery terminals would help solve the
State's revenue  problem, we're still waiting on the $300 million down
  when the project is signed and about $1 million a day  when it is
operational. Only, they can't pull the  trigger, twice selecting
bidders who couldn't pass the  test -- financial or character.

When it is finally a done deal, and the $300 mil  banked, and another
$1 mil per day in the pipeline, we  can all sleep better knowing that
legal gambling is  helping the folks in Albany to pay the bills.

If gambling weren't enough, our accidental governor has  decided that
selling wine in supermarkets will yield  huge fees, increase wine
consumption and net the State  a much larger share of the alcohol tax.
If the  lobbyists don't stop him, between the franchise tax and
increased sale, that's $93 million extra from wine --  I'll drink to
that.

Let's not forget that the State Senate Dems want to  legalize medical
marijuana, bringing $15 million in  licensing fees, they also want to
refinance tobacco  bonds for another $300 million -- and there is also
a  plan to collect tax on cigarettes sold by Native  Americans, which
could net the State another $1  billion.

It appears that the folks in Albany have discovered the  answer to
their inept spending control is the magical  "sin tax." Just tax
gambling, booze, drugs and  everything else that makes you feel good.

Me, I was raised in a different New York City.

Gambling was illegal -- absolutely. I remember before  the New York
State Lottery and "Howie the Horse"  brought us OTB the only way to
gamble was with the mob:  numbers, bookies or a Nathan-Detroit-style
floating  crap game. New York didn't allow gambling.

We also frowned on booze; and marijuana or drugs of any  sort were
dealt with the harshest set of laws known to  man.

But that was then and this is now. The State needs  money. So let them
do it if you can tax it.

Don't get me wrong, I'm not railing against the sin or  the tax. I
just know that in the New York society that  existed when I was a kid
sin was discouraged or  illegal; in the one we will live in tomorrow,
sin will  be encouraged and taxed.

The Real Budget Solution

The solution to the State's budget problem: keep  encouraging sin, and
tax it like crazy.

Why stop at medical marijuana? You can't even tax it if  it's for
medicinal purposes. We know you can get any  drug you want at the
right club, school yard or street  corner. Let's license, regulate and
tax it, taking it  away from the underworld that makes all the profit.

Open State-licensed "drug" stores -- or give the  franchise to CVS.
Perhaps liquor stores will want to  enter the game and provide more
franchise fees -- and  maybe supermarkets, too. Hell, competition will
bring  the price down and the monster tax on the stuff won't  even be
felt by the consumer.

Let's legalize all gambling; bring in the Indians or  Steve Wynn and
collect huge licensing fees and tax  them. It's not so complicated. A
Casino in Arverne,  slot machines in the supermarket -- next to the
wine --  online sports betting and a numbers game licensed out  of
every bodega.

Why stop there? Legalize, license and tax prostitution.  Require
health registrations and regular testing for  hookers -- the City is
already giving away free condoms  wrapped in a design by a Queens
artist. The licensing  and registration would help address the illegal
sex  trade and take another bite out of unsanctioned street  activity.

Picture a new big box store where once-questionable  activities are
now licensed, encouraged and taxed by  New York State, with wine,
drugs, condoms and a slot  machine flanked by hookers at the checkout
counter. Or  shop local, and rebuild a troubled Main Street. The
neighborhood liquor store put in jeopardy by the new  Paterson Wine
Sex Slot Drug Store could remove some  shelves, put in a card table
and a bed in the backroom.  As long as they follow the rules and pay
their  franchise fee and taxes they could once again afford  health
insurance and their kid's college tuition.

Okay, it all sounds a bit flippant, you're thinking.  But wouldn't it
hit organized crime in the pocket book  -- where it really hurts?
Wouldn't it raise gazillions  of dollars in new tax revenue for our
State? It would  balance the budget without resorting to those phony
one-timers or hiding endless debt in quasi-public  agencies, make
prostitution safer, make drugs less  deadly and allow us to view our
society as it really  is.

But most of all, it may enable the nation's most  dysfunctional State
Legislature to continue to spend on  member items, family members,
junkets, perks, special  interest groups and waste -- and for the
first time in  our lifetime, be able to pay the bill.

Happy April 1. 
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MAP posted-by: Jo-D