I think it’s worth highlighting the following apparent contradiction from the Senate Majority, which supports Bloomberg’s Congestion Tax. Below is from a Senate press release promising to reject one of former Governor Spitzer’s proposed tax increases on cars. Hopefully, there will be enough members of the Senate Majority who will realize that they will jeopardize their credibility and purpose with the people of New York State if they break their no-tax pledge by passing the Congestion Tax on New Yorkers.
SENATE TO REJECT “SPITZER CAR TAX”
PROPOSED 300 PERCENT HIKE WOULD UNFAIRLY BURDEN NY DRIVERSThe New York State Senate Majority today announced it will reject the “Spitzer Car Tax” when it advances its budget next week, since the proposed three hundred percent tax hike would unfairly burden Upstate and Long Island drivers and their families.
In the 2008-09 Executive Budget, Governor Spitzer has proposed raising the Motor Vehicle Insurance fee on every vehicle that is registered in New York from $5 to $20 this year.
“The ‘Spitzer Car Tax’ is being advanced in an environment where New Yorkers are paying higher gasoline costs, higher Thruway tolls, and higher prices on milk and other basic grocery staples. We understand that we need to do more to help taxpayers make ends meet, and that’s why this conference adamantly opposes this onerous tax hike. New Yorkers can rest assured that it won’t be part of the Budget we ultimately adopt,” Senate Majority Leader Joseph L. Bruno said.
“Upstate New York’s drivers represent 32 percent of New York’s population and 44 percent of New York’s drivers. This is clearly a misguided tax on Upstate that hardworking New Yorkers can’t afford. And the Governor’s tax hike doesn’t do anything to stop Albany from raiding the Dedicated Highway and Bridge Trust Fund to pay for administrative costs like salaries at DMV. The Senate’s BRIDGE Reform Act would fix the Dedicated Fund in five years without unfairly burdening Upstate taxpayers,” said Senator Thomas Libous (R,C,I-Binghamton), the Chairman of the Senate’s Transportation Committee.
“I oppose the Governor’s plan to use insurance policies as revenue raisers because it simply hits the family budget and pressures the cost of driving to work, school, shopping or church. Upstate motorists need their vehicles, and with gas costs rising, a huge jump in the insurance fee — per car — is the wrong thing to do, and one more reason for people to leave New York,” said Senator James L. Seward (R,C,I-Milford), Chairman of the Senate Insurance Committee.
“The Governor’s hidden tax and fee increases on the working men and women of New York are no way to raise revenue for the state budget. This additional fee increase, as proposed by the Governor, will add yet another harmful financial burden on the taxpayers in my community. That is why I will strongly oppose this 300 percent increase in the Motor Vehicle Insurance fee,” said Senator Joseph E. Robach (R,C,I,WF-Rochester).
“While Governor Spitzer has pledged to lower taxes, his budget clearly goes in a very different direction. The ‘Spitzer Car Tax’ would have a real impact on all the drivers across our state and, at a time when our hardworking families are facing increased costs from every other area, the state budget should avoid adding to that burden. And, in the end, we will make sure that our residents are protected from this type of hidden tax,” said Senator John Flanagan (R,C,I-East Northport)
Despite his public pledge not to raise taxes, the “Spitzer Car Tax” is among $1.7 billion in tax and fee increases advanced by the Governor in his 2008-09 Executive Budget. The Senate Majority has opposed the Governor’s efforts to raise taxes on hard-working New Yorkers.
The Motor Vehicle Insurance fee is collected annually from insurance policy holders for each insured motor vehicle. The fee was increased from $1 to $5 in 2003, however, it has been scheduled under current law to be reduced to $1 annually on July 1, 2008.