Monday, March 9, 2009

Gov. Paterson makes a commitment in black and white to scale back tax and fee hikes

We direct readers to the righthand side of this page, where Voicer David A. Paterson offers excellent thoughts about how New York should use the billions of dollars that Washington appears poised to send this way.
He makes the case that Albany's priority should be to spare New Yorkers from tax and fee hikes should the feds deliver major new aid under the economic stimulus package working its way through Congress.
That's exactly the right prescription - and highly welcome from this particular Voicer, as he happens to be governor and therefore well-positioned to make it reality.
Raising taxes must be an absolute last resort, whether in Albany or in Washington. Such a step would further weaken an already devastated economy, particularly in New York, home of one of the heaviest tax burdens in the nation.
To his credit, Paterson tried to avoid tax hikes in steering the state through its worst fiscal crisis since the Great Depression. But even chopping spending by $10 billion wasn't enough - not in the face of a whopping $15.4 billion in deficits.
To make up the difference, Paterson proposed more than $5 billion in tax and fee hikes - including a highly unpopular 18% levy on sugar-sweetened soda. He acknowledged that all New Yorkers would feel the bite.
But now, Congress is debating a bailout for state and local governments that could mean huge infusions of aid in the next two years. Predictably, targets of Paterson's cuts are making claims on the money. Leading the pack is the health care industry.
Paterson sought to rein in New York's Medicaid program, by far the costliest in the country. But hospitals have responded with alarmist TV ads implying that he will force them to close without more cash.
The governor and Legislature would ill serve taxpayers were they to use the arrival of short-term federal cash as an excuse to avoid long-overdue, long-term spending discipline.

Paterson gets the point. He writes:
"I want to assure the readers of the Daily News - and all New Yorkers - that we hope to eliminate many of the tax and fee proposals put forth in my budget if we can secure a significant amount of federal aid to help close our deficit."
The more, the better, governor.
If lawmakers use this temporary windfall to increase spending, they'll leave the state in an even deeper hole when the cash dries up.
Rolling back tax and fee hikes is the more responsible option. So says the Voice of the People.
The terror toll rises
One more name has been added to the roster of the 9/11 murdered. One more soul has been appended to the terror attack's toll. It is sadly fitting, and the terrible number now stands at 2,752.


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