Real tax cuts only come with fiscal restraint

Monday, February 28, 2005 10:51 AM EST

Gov. George Pataki likes to brag about the decade of tax cuts he's pushed through the state Legislature, and he claims his budget proposal for the state's next fiscal year continues that momentum. He is, after all, proposing to eliminate the temporary income tax surcharge (one that applies to the state's wealthiest residents).
But when the governor talks about his tax cuts, he fails to mention the corresponding tax increases he and the Legislature have been sneaking into state budgets for years. His proposed spending plan is no different.

Just ask owners of all-terrain vehicles.

Pataki is seeking to increase the ATV registration fee from $10 to $45 - something riders are obviously upset to see.

In the end, however, such a fee will likely not stop ATV enthusiasts from enjoying their hobby and it probably won't hurt ATV sales, either.

And that's exactly why these kinds of taxes are becoming an increasingly integral part of state budgets.

Instead of raising state income taxes - which is an open invitation for political attacks - the state's leaders like to maintain their revenues by charging more for ATV fees, increasing the excise tax on wine or hiking motor-vehicle registration and title fees (all actions Pataki has proposed for 2005-2006).

To make these fees a little more palatable for those directly involved, sometimes the state will throw a little of the added revenue their way. A small portion of ATV fee funds goes to trail maintenance, for example.

This approach to budgeting makes sense politically, but it will ultimately come back to haunt the state because it is not addressing Albany's biggest problem - its inability to control spending.

Containing costs is the best way to hold the line on income taxes - not shifting the burden.

The Pataki administration will counter that it is being responsible with costs.

Next year's budget proposal is a mere 2.5-percent higher than the current budget, and it includes numerous spending cuts.

But look at Pataki's entire record to get a better indication of his fiscal restraint.

Since 1995, the state budget has grown from $62 billion to a proposed $105.6 billion for next year.

And make no mistake, taxpayers have been footing the bill.

The Citizens' Say

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