New York State vs. Small Business


In any economic evaluation, you have to balance long-term goals and short-term goals in a way that will ultimately benefit the “Bigger Picture.” In other words, though it isn’t always the case, sometimes you have to sacrifice short-term prosperity in order to benefit greater in the long run. Recent decisions by New York State, however, seem to suggest a willingness on the part of the State to not only favor the short view, but positively decimate the potential for future prosperity.

The first of these decisions, by the unelected bureaucrats of the State Dept. of Taxation and Finance, includes a new registration and fees for businesses to be able to collect sales tax for the state. You read that right. The State still requires a sales tax to be assessed at cash registers across the state — money which goes directly to the State coffers — but now, retailers have to pay for the priviledge. Par for the course, T&F offers not so much an explanation for this monstrosity of authoritarianism, as a “justification:”

Department spokesman Thomas M. Bergin said the department estimates there are 600,000 active businesses. The $50 fee therefore would generate about $30 million for the state.

“We have never gone through these filers to see who’s here and who’s not,” Mr. Bergin said. “But it also will raise revenue that the state is badly in need of.”

In addition to weeding out defunct businesses, the recertification process could help the department find businesses that owe sales taxes.

In other words, the over-paid bureaucrats at T&F are incapable of actually doing their jobs, so they are charging these businesses in order to be able to make record of retailers they have failed to keep track of. The Government hacks suck at their jobs and the people who perform a service for them (charging and sending sales taxes) have to foot the bill to cover. That Jamie Woodward, the acting commissioner of that department, still has a job, is astounding. Not particularly surprising, but troubling, nonetheless.

I should not have to explain why charging small businesses an additional fifty bucks per quarter (or cycle) is a bad idea in an already troubled economy. I try to avoid explaining common sense — I also refuse to pepper my blog with warnings not to drink Drano or stare directly into the lens of a 5,000-candle-power projector. I’m sure, if you stare at the above sentences long enough, you’ll be able to muddle through. Unless you happen to work for the state.

Alas, the state’s assault on small businesses didn’t start there, and it doesn’t end there. Not by a long shot.

Another recent development involves everyone’s favorite scapegoat, TOBACCO(!!!!!!!!!!)(cue Snidley Whiplash theme). As has been pointed out by this blog before, New York State under “governor” Paterson seems to have found itself a cash cow in the less-than-healthy lifestyles of many New Yorkers. So long as the State is careful only to go after the unpopular minorities of society (like the smokers and the fatties), they figure people won’t mind (or won’t notice) that their freedoms are being eroded.

This time around, though, the State is going after tobacco retailers (and therefore, smokers) in a more roundabout way. Rather than hitting cigs with another tax, they’re jacking the price of the tobacco license. A lot. Where it once cost retailers $100 to get a license to sell tobacco, it will now cost a minimum of $1000. That’s right. A 1000% fee increase, at a minimum. True, my memory can be short, but I can’t think of another fee increase that massive over a single year.

And who’s going to get hurt by this? Big business? Not likely. Big Tobacco? Probably not. Small business and the consumer are going to take the hit, again.

So, good ole Greg & Molly’s out on Route 11, who does a pretty good business in general, but has been suffering in the downturned economy like everyone else, now has to come up with another $1000 a year (or more) and another $50 a cycle. They can probably deal with it, and maybe even manage to come back out of it a stronger business.

Folks who haven’t been around as long, who are perhaps still struggling… well, they’re SOL. Honest folks, in general, who are just trying to make their own way. But then, it is becoming more and more clear that “making our own way” is exactly what New York State doesn’t want to see happening. And as they kill off the businesses, finances and dreams of their constituents, the elected officials of New York State will soon find that they haven’t the revenue left to keep operating. And with no more smokers, fatties, rich folk or small business owners left, who do you suppose they’ll have to shake down next?

(cross-posted at SLC Republitarian)


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10 Comments Leave a comment

Look no further to find the real exploiter of the masses

Beaglescout (Diary) Monday, August 31st at 4:35PM EST (link)

It is the Government.

“A nation which can prefer disgrace to danger is prepared for a master, and deserves one.”

–Alexander Hamilton
 

They'll be looking for a bailout from the Feds.

penguin2 (Diary) Monday, August 31st at 5:24PM EST (link)

Meaning you and me. The rest of the nation will have to pay to support states like New York and California when they are trying to avert bankruptcy. New York is losing population and businesses because of their high tax rates. New fees (a tax by any other name) is just going to drive more of them out. Decreased population (income tax payers) and businesses (decreased tax revenue and fees) all will lead to the same thing. Coupled with the people who do remain in NY dependent on government handouts; well then you have a state on the verge of economic collapse.

It will be interesting to see which state arrives at that finish line first. Or which one will be rescued by the rest of the nation’s tax dollars.

Resistance to tyrants is obedience to God. – Benjamin Franklin
When Good stands up to Evil, Evil blinks. – Vassar Bushmills

Conservative Education: Suggested Reading List

Activists Taking Action: Unified Patriots

 

NY is blue and as with all Democrat controlled states...

JadedByPolitics (Diary) Monday, August 31st at 7:05PM EST (link)

they will ROB the citizens blind with taxes and fees and then wonder why they are moving to Red states but then that blue trash expects to change the great states they move to with the same taxes and fees. Democrats the party of idiots!

I agree, Jaded... but to me, that's part of the point.

randy streu (Diary) Monday, August 31st at 7:09PM EST (link)

I want SOMEBODY to defend the sort of idiotic thinking that’s happening here. Or to try to. I want for this state’s liberals to try on some intellectual honesty and really examine where these sorts of regs and laws are really taking us.

Sadly, such examination is unlikely. Still, I feel it necessary to try.

great article randy - nt

Mike gamecock DeVine (Diary) Thursday, September 3rd at 6:46PM EST (link)

Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson

 
 
 

Idiots. n/t

fmaidment (Diary) Monday, August 31st at 7:24PM EST (link)

n/t

Follow Me on Twitter

“I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it.”
– - Thomas Jefferson, to Archibald Stuart, 1791

 

If an HONEST Census

Deskpilot (Diary) Monday, August 31st at 8:39PM EST (link)

were to be performed in 2010, the Dept. of Commerce would take YEARS to try to explain the dramatic population shift in this country. Middle and large businesses are moving lock, stock, and barrel (of their tax gun) to business friendly RedStates. Those states that don’t have such a heavy tax burden on its citizens, (for tax purposes, a business is a citizen) are enjoying a booming growth of businesses, that hire or bring new taxpaying citizens with them.

I have always known and understood that less taxes = more government revenue. Higher taxes always disincentivize a process of purchase, resulting ina transaction NOT being made and NO revenue collected, which then really screws the books of government.

If you can read this, thank a teacher. If you can still read it in English, You’re Welcome
Deskpilot, AM(H)1 (AW), USN (Ret)

 

Can California be far behind? nt

Erick Brockway (Diary) Monday, August 31st at 9:16PM EST (link)

valid question.

randy streu (Diary) Monday, August 31st at 9:18PM EST (link)

if the previous showcases of their total inability to LEARN is any indication, I would say they’ll probably look at what’s happening here and wonder that they didn’t think of it first.

 
 

Suggestions

daconia (Diary) Tuesday, September 1st at 10:42AM EST (link)

Any ideas for what else T&F might stand for?