Cosentino: Beware of the unintended results

By Guy Cosentino

Thursday, May 1, 2008 11:49 AM EDT

With the passage of any governmental budget there are changes in policy, some large, some minuscule. Often with the best of intentions, policy makers can create policies that have unintended consequences, that down the road have them regret their decisions. This month two changes from Albany seem to fly in the face of other policy goals. One deals with tax collection, the other with traffic patterns.
In the budget passed by the state Legislature, New York hiked its excise tax on tobacco products from $1.25 a pack to $2.75, making it the highest in the nation. Public health officials were quick to tout the increase, claiming that it would make some current users (some 140,000) quit and deters nearly a quarter of a million children from even starting.

Great numbers, if they are both true and realistic projections. Such declines will likely only happen if such taxation, used for the purpose of deterrence is uniformly enforced. Anyone who has paid attention to the failure of the state to collect taxes from Native American tribal stores or stop “tax free” sales by Internet vendors knows that while there may be the best of intentions here, the numbers may not just play out.

Just prior to the adoption of the hike, the state's association of convenience store owners pointed out that “ ... due to tax evasion, the state collects less cigarette excise tax today at $1.50 per pack than it did in 2001 when the tax rate was 39 cents a pack lower.”

Why?

There is a natural tendency, human nature, if you will, to go to the lower priced product, if it can be easily had. The only way to increase revenue and deter usage is if there are no ways around the penalties. Until New York rightfully enforces the collection rules, as approved by the Legislature, such deterrence numbers will likely not be able to be attained.

The other big change this month, that flies into the face of logic is the increase in Thruway tolls at the same time local legislators, and now it looks like Gov. David Paterson, are trying to get heavy truck traffic out of local municipalities and get them back on roads, such as the Thruway.

It defies logic to think if you are trying to get truckers to use these routes, that raising the costs, approved on Friday by the Thruway Authority, especially mixed in with increased fuel costs, will get trucks to use more expensive routes.

So when your local legislators say they support this policy or that, voters should see what other actions they may have taken to counter such policies.

Cosentino is a former mayor of Auburn and can be contacted at cozguytho@aol.com

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