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Thread: 9% sales tax

  1. #1
    Tony Fracasso - Admin
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    9% sales tax

    So what do we all think about a 9% sales tax.

  2. #2
    Tony Fracasso - Admin
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    The Full Story in the Buffalo News

    Giambra asks state to allow sales tax hike
    By MATTHEW SPINA
    News Staff Reporter
    10/2/2004

    Erie County Executive Joel A. Giambra is seeking a sales tax increase while insisting he can't share the $125 million it would raise each year with schools and local governments, including the City of Buffalo.
    He met this week with Assembly Majority Leader Paul A. Tokasz, D-Cheektowaga, and State Sen. Dale M. Volker, R-Depew, urging them to win the state permission needed to bring the total sales tax from 8.25 cents to 9.25 cents on the dollar in the nation's highest-taxed state.

    By most accounts, Giambra did not get a warm reception. It's a safe bet his sales tax increase won't be in place by March 1, as he wants.

    "He hasn't justified any of this to anybody, and my answer to this is no," Tokasz said.

    Volker was cool to it, too.

    The Full Story in the Buffalo News

  3. #3
    Member Curmudgeon's Avatar
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    When 100% of your current tax levy goes to pay for mandated Medicaid, you're in a really tough spot.

    I say don't do anything and force a crisis by declaring county bankruptcy. This will certianly get the attention of Albany. If Albany wants to "unfunded-mandate" the cities and counties to death, then they may as well run them and be held responsible too.
    Data is not the plural of Anecdote.

  4. #4
    Member dtwarren's Avatar
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    Re: 9% sales tax

    Originally posted by WNYresident
    So what do we all think about a 9% sales tax.
    Recently County Executive Joel Giambra has asked state legislative representatives for support in increasing Erie County’s sales tax rate by 1%. His justification for this increase is that the county’s funding of state mandated Medicaid has increased to the point that it is equivalent to the revenue generated by property taxes in the county. Mr. Giambra also stated that an increase in sales tax would be fairer than an increase in property taxes.

    The current sales tax scheme is divided between the state and the county where the purchase occurred. In Erie County the sales tax revenue is divided between the county and the towns, villages, school districts and cities within the county. The County keeps 100% of the extra 1% “temporary increase” enacted in 1985. It has been reported that all of this new extra 1% sales tax hike will only go to the county.

    The state has steadily increased the taxes imposed on cigarettes under the rubric of defraying Medicaid related expenses. The current tax imposed on cigarettes is $1.50 plus the sales tax rate of 8.25%.

    Earlier this year a study was released by F.A.C.T. (Fair Application of Cigarette Taxes website: http://www.factalliance.org ) that addressed the lost revenue by the State’s failure to collect taxes from non-members on Indian land. (This includes people of Indian descent who are not a member of the Indian nation or tribe whose land the purchase takes place.) The study concluded:

    * collecting taxes on Native American sales would reduce total cigarette consumption by 5 percent and save 1,250 lives a year in New York. The state would collect $410 million in additional cigarette taxes per year and save $215 million in annual Medicaid costs in addition to raising $750 million in new revenue;

    * shift 24 million cartons of local consumption from tax-avoiding sources to tax-paying sources;

    * reduce Internet sales, including out-of-state sales;

    * and reduce smoking in the state by 2.5 million to 3 million cartons;

    * These changes in market conditions would create a direct net increase of 1,300 to 1,400 jobs in the retail cigarette market, with higher labor earnings of $35 million to $40 million. Indirect effects - from industries that supply or service cigarette retailers - combined with direct impacts would bring total job expansion to between 1,900 and 2,000, with a total net gain of $55 million to $60 million in taxable wages.

    County Executive Joel Giambra has often criticized leaders of the City of Buffalo for not taking care of their problems before coming to him and the county taxpayers for assistance. Why is he not following his own advice? The county has the power to enforce these laws on Indian land within Erie County. If Mr. Giambra and his peers, the county leaders of the other 16 counties that have Indian land within them, they could have a dramatic and profound effect that will go along way towards alleviating the necessity for tax increases of any type. I have asked these questions to county officials before, however I received no response.

    Daniel T. Warren
    Chair
    Niagara Frontier Chapter of Upstate Citizens for Equality
    http://www.upstate-citizens.org

  5. #5
    Member absolivious's Avatar
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    What the hell - let's make it 11%

    First the state legislators should require that the 1% TEMPORARY sales tax be removed. Then a permanent increase of 2% can be requested in Erie County.

    On second thought, we'd better make it a 4% increase ...if for no other reason than to compensate for the accelerated downward spiral of sales and the population exodus that would follow with a meager 9% sales tax!

    Arthur Laffer where are you?

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    What happened to No Handout, No Bailout ?

    That is what he always preached, and imposed on others. Why can't he cut from within ? The City is doing it because they are forced to by the Control Board. Why can't Giambra, who is a member of that body, keep his own house in order ? He has been in charge for 5 yrs. These costs haven't appeared out of nowhere. The City was blindsided by the State cutting off it's state aid, which the city had relied upon for 10% of it's budget. 9-11 caused that. Crisis breeds opportunity, was Giambras quote. Well guess what, maybe an impeachment vote ought to be taken. Neglecting his duties as County Executive as the reason.

  7. #7
    Gold Member Night Owl's Avatar
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    First the state legislators should require that the 1% TEMPORARY sales tax be removed.

    This was my first thought, but not the part about a 2% increase because that will just bring us back to 9% again, which is what brought on the topic of this thread in the first place.

    No hand out, no bail out... the county has kept the whole 1% temp increase and refused any part of sharing it with Buffalo, but city residents would still have to contribute to the higher sales tax without any help from the county. No hand out, no bail out... NO FAIR JOEL!!!

    I hope Giambra falls flat on his face with this proposal, just so that he knows the people aren't going to keep taking what they throw at us.

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    Giambra is sick. Just think about the nerve he must have to even run something like this up the flagpole. He's sick.

    I've heard that the County has something like 400 "company" cars that they let employees drive. Until things like that are corrected, Giambra has absoutely no right to even mention a tax increase. He's sick.

    My skeptical nature causes me to ask if this is some type of "tactic".

  9. #9
    Tony Fracasso - Admin
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    Could it be he's stating how bad medicaid is to just remove our attention from problems within the county?

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    Member dtwarren's Avatar
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    Originally posted by WNYresident
    Could it be he's stating how bad medicaid is to just remove our attention from problems within the county?
    That is a possibility, however I believe it has obtained the opposite result.

    I sent my comment above to the Buffalo Common Council and the members of the Erie County Legislature. Below is the text of an e-mail I recieved from Councilman Coppola:

    --------------------------------------------

    Mr. Warren,

    I believe that the sales tax proposal will be detrimental to retailers in Erie County and will further the divide between retailers and internet sales.

    Marc A. Coppola, Majority Leader
    Buffalo Common Council

  11. #11
    Tony Fracasso - Admin
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    I read your comment and the first word which poped into my mind was "DUH". You wonder if the joel thinks about that, or any other elected official in NYS.

    Doesn't effect them though, they will still get thier pay and cushy retirement no matter how bad thier decisions are.

  12. #12
    Gold Member Night Owl's Avatar
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    Could it be he's stating how bad medicaid is to just remove our attention from problems within the county?

    IMO- WNYresident, yes, I really feel he is attempting just that.

    Any body in their right mind would know that the high cost of medical attention is what's driving up the cost of medicaid. For the most part, a certain percentage of population can't afford to get sick. Do you not agree? Or are there just too many suburbanalized opinions viewing this site? Usually it's the members of the burb's communities that would be easier lead into beleiving medicaid is the real problem.

    I have heard of Doctors charging as much as $200 for a clinical visit because a patient makes an apponitment for whatever reason; let's not talk about the cost of perscriptions. How are people suposed to afford a 14 day supply of medication to help get over the FLU? For a suburbanite with a killer health plan wouldn't blink an eye at that price with thier 'co-pay', but it's a hell of a difference to a single parent household in the inner city working 2 jobs with no medical coverage at all, isn't it?

    Let's not confuse the public on this one; property taxes do not go directly towards medicaid... period! it is added to the general fund and what needs to be taken out is. The amount for what's collected in property taxes is roughly the same that is paid to cover medicaid costs and that should reaise a red flag in the minds of our (so called) Lawmarkers' heads; that the price of medical treatment is way too high and people have no chioce but to rely on the government program.

    You betcha... Using medicaid as his primary excuse is a form of shifting away from the real mismanagement of tax money from our County Executive.

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