New York planning 'fat tax' on drinks

[Richard]

Last Updated: 4:03PM GMT 16 Dec 2008

If Governor David Paterson's plan becomes law, consumers would pay more for non-diet versions of drinks such as Coca-Cola, the New York Times reported.

Gov Paterson is proposing the potential 15 per cent tax to help close a budget deficit of $15bn and improve the health of people living in the state.

Mr Paterson has said he will not raise state income tax but added: 'You can't tax $50 billion on New York's wealthiest residents. You are going to have to take it from other places and hopefully, if there were to be an income tax, it would be at the end of the process, not the beginning.'

Some other US states have sales taxes on soft drinks, sweets and snacks.

But New York's proposals would be the first to distinguish between 'diet' and 'non-diet' products.

However, drinks companies, such as Coca-Cola and PepsiCo are likely to fiercely oppose the proposal.

A spokesman for the American Beverage Association said: 'It looks like a money grab. [Mr Patterson] is trying to grab money anywhere he can find it. This is a time when the government, just like families, needs to tighten its belt.'

The Democrat governor is also expected to impose higher taxes on luxury items from furs to boats, according to the New York Times.

http://www.telegraph.co.uk/health/379371...rinks.html

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Gov. David Paterson unveils dire New York State budget that includes new taxes, layoffs and cuts

By KENNETH LOVETT and GLENN BLAIN
DAILY NEWS ALBANY BUREAU
Updated Wednesday, December 17th 2008, 8:39 AM
 
A few of the things that will cost a little more under the new state budget: Clockwise from top l., sporting events, alcohol, Internet downloads, shopping, taxis, soda, movie tickets, and cable TV.

ALBANY - Gov. Paterson's proposed $121 billion budget hits New Yorkers in their iPods - and nickels-and-dimes them in lots of other places, too.

Trying to close a $15.4 billion budget gap, Paterson called for 88 new fees and a host of other taxes, including an "iPod tax" that taxes the sale of downloaded music and other "digitally delivered entertainment services."

"We're going to have to take some extreme measures," Paterson said Tuesday after unveiling the slash-and-burn budget.

The proposal, which needs legislative approval, did not include broad-based income tax increases, but relied on smaller ones to raise $4.1 billion from cash-strapped New Yorkers.

Movie tickets, taxi rides, soda, beer, wine, cigars and massages would be taxed under Paterson's proposal. It also extends sales taxes to cable and satellite TV services and removes the tax exemption for clothes costing less than $110.

"The governor is nickel-and-diming working class families," said Ron Deutsch, executive director of New Yorkers for Fiscal Fairness, an advocacy group.

State Conservative Party Chairman Michael Long warned that reinstating the sales tax on clothing and shoes will drive people to New Jersey, where they will also gas up their cars and pick up their wine, spirits and soda because the prices are less due to lower taxes. "You're sending notice to the people of New York that we really don't want you here," Long said. "The governor proposed flat spending, but why not actually cut the budget before raising taxes and fees?"

Paterson's 2009-10 budget proposal represents only a 1% increase in total spending from this year's budget - the smallest increase in a dozen years. It also calls for:

A 3.3%, or $698 million, reduction in school aid.

$3.5 billion in health care savings, including reductions in payments to hospitals and nursing homes.

Video slot machines at Belmont Park, more multistate lottery games and expanded hours for the state's Quick Draw lottery game.

Layoffs for 521 state workers and the elimination of seven state agencies.

"This is where we are," Paterson told reporters. "Maybe we should have thought about this when we were depending on what we thought was inexhaustive collections of taxes from Wall Street - and now those taxes have fallen off a cliff."

Paterson aides say the budget represents a net gain for New York City, but Mayor Bloomberg wasn't buying it. He said it could cost the city more than $1 billion, including a $600 million reduction in school aid.

"I don't know that 100% of it is going to go the classroom, but a large percentage of any reduction we get from the state will go to the classroom," Bloomberg said. "That will mean larger class sizes and fewer services."

http://www.nydailynews.com/ny_local/2008..._york.html

[Astrojewels]

It’s a good way to get more people to consume diet drinks, this is one of the major reasons why the world is getting larger, and I noticed the other day when I was out that the percentage is increasing, yet not many older people are large. It is the biggest con in the world to think that eating or drinking low fat/sugar products help you. I know a young girl that was/is overweight, she followed a popular diet and lost 12 kg, she looked great but the food consisted of all low fat/sugar products, now one year since she stopped she has gained 18 kg, so why bother she says? We were having a chat and I said to her that this is proof that these products have changed your natural metabolism and she disagrees while sipping her diet coke…..

[Sily]

The Gov. Paterson skit on SNL this past Saturday was really funny.  He was walking in front of the camera while Amy P. was saying her goodbye to the show.

http://www.nbc.com/Saturday_Night_Live/v...on/881501/

[Anu-021413]

There is more to it than just a soda tax. Besides doing this "For the health and welfare of" is just bs. There are other ways to promote better health. Taxing people even with representation isn't it. There's a tax on music downloads, movie and concert tickets, a new "reflective license plate [when they already are reflective], a $50 fee on NSF checks,and many other things. God only knows what hasn't been disclosed in the proposal. This will only further take money out of peoples pockets and restrict their actions. Simply by making things cost prohibitive. There's been no move towards decreasing spending of much significance. So we not only pick up the slack from the decrease in collected taxes from wall St,we are priced out of many things. Not good.

[Astrojewels]

I agree Anu that it is not good; however they are going to continue to do it as long as there is a market for it, and people should just buy more fresh produce rather than anything packaged to avoid these kind of taxes, and at the end of the day they do not want people to be healthy, because what would happen to the whole system if the population just woke up to the poisonous fast food that is consumed daily? It is the same as the law system, the entire world runs on ‘illegal’ dealings, and without it most businesses would go broke, especially car dealers.

They don’t want to fix the wrongs, because it is these wrongs that keep society going in full circle, this is why I personally do not believe we will ever go to a complete cashless society!

[Richard]

I’m surprised they got away with a fat tax. Why should someone who is fit and doesn’t need diet products be forced to pay more tax?

Now that the country is in recession, more and more states will be coming up with crazy taxes to make up for their shortfalls, which in turn will slow the economy even more.

[BlueMoon]

Looks like the govt wants people to ingest diet sugar subdstitutes like aspartame which are harmful . It's also difficult to find products without flouride, flu shots are promoted big time even though they contain mercury. It goes on and on. See DrMercola.com for updates on products being pushed on the public. And he is a doctor.

[Anu-021413]

Astrojewels[/color]]I agree Anu that it is not good; however they are going to continue to do it as long as there is a market for it, and people should just buy more fresh produce rather than anything packaged to avoid these kind of taxes, and at the end of the day they do not want people to be healthy, because what would happen to the whole system if the population just woke up to the poisonous fast food that is consumed daily? It is the same as the law system, the entire world runs on ‘illegal’ dealings, and without it most businesses would go broke, especially car dealers.

They don’t want to fix the wrongs, because it is these wrongs that keep society going in full circle, this is why I personally do not believe we will ever go to a complete cashless society!

What you don't seem to realize is that many packaged foods are all many can afford to eat. It's not like  they want to eat pure salt Ramen noodles etc,but that's the cheapest food available to many. Especially now. It's a form of forced starvation/misnutrition by making food cost prohibitive. Organic food is waay expensive,and reg food is as much so. I heard a quote by the CEO of ADN [the seed crop mfg] saying that controlling the food was much more powerful than controlling oil. Armies run on thier stomachs,and societies do as well. You know at first I felt bad for this guy after the latter portion of the SNL skit. Which btw he talked about taking it over. [As if he needs to] Now I'm beginning to change my mind on that.

[Mercy Now]

 Saw Paterson in an interview .Seems he subscribes to the trickle down theory. He didn't say as much but he doesn't feel to raise taxes on the wealthiest portion of society.

[Astrojewels]

Anu,

I am not talking about organic foods; another big con, just basic food- a bag of potatoes can go a long way, instead of a packet of noodles filled with MSG and other additives, buy fresh noodles and add some vegetables and cook them in real chicken stock etc. you can make a pasta sauce for around $20 and freeze it in portions, a large pot of soup can be made very cheaply, there are so many alternatives to ‘freezer/microwave meals’

I agree that they do control the population through food, yet basic cooking skills are being lost in society, food is wonderful and  you do not need to be rich to eat well, you just need an imagination.