Budget plan adds tax on soda, cigarettes
Smokers would have to pay $1 more in taxes on a pack of cigarettes, soda drinkers would have to pay a penny more per ounce on a can of soda, and gamblers would get more time to play Quick Draw and video-lottery terminals under Gov. David Paterson’s budget plan that was unveiled Tuesday.
And watch out on state highways: The governor’s proposal would install cameras to nab speeders at 40 work zones and 10 other locations.
With the state facing a $7.4 billion deficit in fiscal 2010-11, Paterson is proposing $1 billion in new taxes and fees. The proposal is much lower than the $8 billion in new taxes and fees in the current year’s budget.
But if approved, the new taxes would still hit many New Yorkers. Some lawmakers and groups were quick to assail the proposed charges.
“New York should be reducing its tax burden and growing its economy, not making our worst-in-the-nation tax burden even more onerous,” said Mike Elmendorf, state director of National Federation of Independent Business.The cigarette tax would increase the current $2.75 per-pack tax by $1, giving New York the highest tax on cigarettes in the country. The state estimates it would bring in $218 million a year.
Advocates said the tax — and the one on sugary drinks — would make the state healthier.
“Today’s budget announcement shows that New York can once again become the national public health leader in tobacco control,” said Scott Santarella, president of the American Lung Association in New York.
James Calvin, president of the state Association of Convenience Stores, said the Democratic governor should not increase cigarette taxes until the state begins collecting the tax on Native American reservations — something Paterson and previous governors have been unable to do.
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