New York Adds New Taxes

While this article I found at CNN.com about new taxes that the Governor wants to impose on the state doesn’t talk about small businesses directly, it does have some information in it  that will affect small businesses.  Like the fact that clothes under $110 will lose their sales tax exemption.  I would not be surprised to see lots of small souvenir shops go under as a result of a drop off in sales.

And what about all the people who are barely surviving in a city where an apartment costs as much to rent as it does to make a mortgage payment on a house in the Midwest?  With taxes on things like cab rides and cable, I would also think that there will be a large number of people who simply will not be able to afford to continue living in the city.  While I understand that the local government is hurting from the huge drop off in Wall Street, I can’t help but wonder about the effects that these taxes (that are still proposed, as far as I know) would have on the population of the city.

And if these taxes do force out a large number of city residents, what will happen to the city?  Where will they go to find the money they need for their budget if there is no one living in the city to pay the taxes?  I understand that there has to be a way for the local government to earn the money they need to continue functioning.  But instead of overtaxing their population to the point that they have to relocate, maybe this would be a good time to see some budget cuts.  I can’t help but feel confident that if the Governor were to sit down and take a long, hard look at how they were spending all their money, he might be able to come up with a few projects that could be cut.  Or at least some things that they could be spending less on.

What do you think?  Do you think that there is a chance of a mass exodus out of New York if these taxes are imposed?