New York's Gov. Patterson...not our most popular gov, this guy...well, he was in the news recently, for trying to re-gain lost state revenues by adding on an "obesity" tax to sugared soft drinks and alocpops. Besides the questionable judgement of adding a new tax for consumers to pay, during a deep recession--bordering a depression, the fact that the gov's office and the media choose to name the tax in such as way, as to completely single out one portion of the population--the overweight--in a move that blatantly smacks of discrimination, should be an indication that the part of our new governor's brain that harbours common sense, is not firing on all cylinders.
Now Gov. Patterson is in the national news again...again, for trying to saddle consumers with new taxes....again, in the middle of a terrible economic recession, that currently has seen over 15,000 New Yorkers losing their jobs in the past couple of months.
The new tax would be an internet tax. As of now, any New York state resident, purchasing goods from a New York state based business...whether in person, through the mail, phone or online...must pay the 7% New York state sales tax.
However, ordering goods online from a business based in Vermont, Chicago, London or France, is currently still tax-free. Which makes ordering online--especially now, with some online businesses offering free or low-cost shipping to entice sales, very appealing to New York consumers.
Gov. Patterson is pushing for new tax legislation in Albany, that would force online businesses, such as Amazon.com, Abercrombie and Fitch, LL Bean, and even Walmarts, to cough up taxes for any products shipped to New York consumers. Amazon is already suing New York state over this, and the whole deal could wind up costing the state more to implement, than the proposed 3 billion in added revenues...should other online businesses jump onto the lawsuit bandwagon.
Opponents of the proposed change in the sales tax law, say that this will hurt the economy in the long run. Proponents say that it will give more even footing for local New York businesses, when it comes to competition for consumer spending.
New York is also controversially proposing to begin taxing songs downloaded from internet services such as i-tunes.
Who will win in this situation? Chances are...it won't be New York state consumers.
