Residents of the state of New York: Congratulations; you just dodged a bullet.

Photo courtesy of : √oхέƒx™|flickr

Last week, on March 11, New York Governor David Paterson and legislative leaders withdrew plans for a host of controversial and highly unpopular taxes that would have resulted in approximately $1.3 billion in new taxes for the year beginning July 1 .

Paterson suggested the state, which faces a record $14.2 billion deficit, could finally afford to drop the proposed taxes because of money the state will receive as part of the federal stimulus package.

Paterson first presented in December what some people thought is a unique plan to aid in closing the historic state budget gap. Others have called the plan “an attack on personal freedom.”

What the plan proposed was an addition to, or in some cases an expansion of, excise taxes, known popularly as sin taxes.

Paterson wanted the state to increase or add sales taxes to, among other items, sporting event tickets, movie tickets, theater tickets, alcohol (beer, wine and liquor), Internet downloads, taxis, satellite and cable TV, cigars, massages and soft drinks that contain sugar. (See more details of the original tax plan.)

And surprisingly, it’s that last one, sugar-laden soft drinks, that caused the largest outcry among New York’s citizens. San Fransisco considered a similar tax:



The $404 million the soda tax would have raised would be used to fund public health programs, including programs aimed at preventing or reducing the incidence of obesity.

"We are in the midst of a new public health epidemic: childhood obesity," Paterson said in December.



Paterson expected such a tax to reduce the sales of sugar-laden beverages by about 5 percent and the statistics he cited in making his proposal are alarming: One in four children under the age of 18 is obese, and in economically challenged areas, that number may rise to one in three. Only 17 years ago, the obesity rate in New York was about 10 percent -- that's a pretty remarkable jump.

But from the moment the words were out of his mouth, New Yorkers were all over the matter, expressing an almost universal disapproval for what became known as the fat tax.

“Any new tax is a bad tax, particularly in this state where we are taxed to death (highest tax rate in the nation when all taxes are taken into consideration), said Dave Barmen, a small business owner from Upstate New York. “And if you think the revenue from the tax will go to what it's supposedly earmarked for, it's highly unlikely.”

Barmen also attacked the core purpose of the proposed tax – decreasing obesity and related health issues.

“All these laws that restrict personal freedom are antithetical to the whole purpose of this democratic experiment we call the United States,” he said, citing seat belt, helmet, hand-free cell phone and gambling statutes as unfair and unpatriotic. “It's one thing to have laws that protect people from harm inflicted by others ... it's idiotic to have laws that protect us from our own selves.”

And plenty of people agree with Barmen, judging from discourse throughout the blogosphere.

Even people who agree something needs to be done to squelch obesity, and childhood obesity in particular, believe taxing the matter away is neither necessary nor productive.

“Educate children on nutrition. Make home [economics] a mandatory class and make healthy eating the core focus,” one New Yorker suggested. “Because you will not stop people from drinking soda with an 18 percent tax.”

The idea of an 18 percent tax not being enough to deter unwanted behavior is also supported by a sizable segment of the population.

“I think the tax would have to be much higher to have a significant impact,” one blog poster said. “While some may switch to diet, an 18 percent increase is only about a 25 cent increase in total price on a two liter. I think people will pay for it: they are too addicted to their sugar and caffeine not to.”

Beth Walter Honadle is a political science professor at the University of Cincinnati. She specializes in public policy research and says the issue must be looked at from two perspectives.

Excluding tax income as the sole or even primary impetus for the soda tax, that leaves two objectives for the proposed but now aborted implementation: to less the consumption of soft drinks and/or to decrease obesity rates.

Honadle offered as alternatives to taxation educational programs, subsidization of healthier alternatives and on outright ban on the sale of sugared soft drinks.

Although, “We all know how well Prohibition worked out,” she said.

She said that if decreasing obesity is the ultimate goal and government feels it wants or needs to intervene, that intervention could take the form of building more pedestrian-friendly areas, building more bike lanes, requiring more physical education in schools and requiring employers to provide recreational facilities.

But all those things cost money, and doesn’t that just put us right back where we started?

College seniors – are you nervous?

Hello friends!

I think many of us are in the same boat – graduation is just about three months away! Not that I'm counting. (Ok, maybe I am.)

But everyday I read another article about how jobs for college grads will be harder to come by than ever.

So, tell me. Are you job searching yet? How's it going? If you aren't looking yet, why not? Are you willing to compromise your dream job for a job? Are you considering grad school?

Leave me comments, or send me an email:

worldneedsnow@yahoo.com

Story to follow soon ...

Are you a customer of Fifth Third Bank?

I am working with fellow journalism major Ashley Monk on a story about the unfair and greatly inflated fees that Fifth Third Bank charges their customers and the way the bank manipulates charges and debits in a manner that is perceived to be unethical.

If you are a customer of Fifth Third and would be willing to discuss your experience with us, please email me at:

worldneedsnow@yahoo.com

We are especially interested in talking to residents of the Cincinnati area and UC students in particular.

We expect/hope for a story on this situation to run in The News Record either next week or the first week after Spring Break, the week of April 1st.

Thanks!

Economy hits Spring Break

Maui, Hawaii, Spring Break 2005

Students at the University of Cincinnati and other area schools are saying that, by and large, the shaky U.S. economy will not impact their Spring Break plans, echoing similar attitudes being expressed on college campuses across the country.

“I think that you are only this age in college once and you only have so many opportunities so you might as well take advantage of them while you have the time,” said Alex, a second-year CCM student.

Industry experts also support that perspective, even if doing so is somewhat self-serving.

Resort operator Sandals offers on its Web site a list of 26 tips for affording Spring Break.

Other operators make Spring Break sound both affordable and necessary.

''Typically, the student business is more resilient to the economy because it's like a once-in-a-lifetime trip,'' said Jason Chute, director of operations for StudentCity.com, a travel group that specializes in spring break travel.

That once in a lifetime, got to do it now before I graduate mentality is shared by Denise Lottman.

Lottman, a fourth-year A&S student said she and a group of friends found a good deal on a cruise to Mexico.

“[I] figure this is our senior year, and [I] have never previously done much for spring break,” she said. “I deserve a reward for getting through college.”

But just a bit of economic reality also creeps into Lottman’s thinking.

“A part of me thinks I would probably reconsider the trip had I not arranged to go nearly six months ago,” she said. “I plan on using paychecks and forget parking passes, I'm braving the Clifton streets.”

In addition to giving up luxuries like parking passes, some students are careful to note that they have worked hard to put together the least expensive vacation possible.

Alex will be making the migration to popular Spring Break spot Panama City, Fla.

“There are 15 of us in two six-person lofts,” he said. “Yes, money may be an issue at this time period, but let's be honest: It won't last forever, it will get better and I'll most likely be in college during most of the ‘down’ years.”

Alex estimates his total expenses for the trip will total only about $250: $100 for his share of the loft (for six nights), gas money for the drive (divided among 4 to 5 people per car) and food and drink.

Annie Dietrich, a second-year education major, can relate to Alex. She and 10 of her closet friends will be sharing a two-bedroom condo in Panama City.

But there are plenty of people who will not be traveling this March.

Amanda Turk, a fourth-year French student at Wright State University, will spend this break as she has spent so many others – working, saving up maybe for her next trip to France. That, she says, is more important to her than a week in Florida with thousands of other students.

Sean Peters, a third-year UC journalism major said that in his fantasy world, he’d spend Spring Break traveling through Western Europe.

He said that instead of France, Denmark and the Netherlands, he’d be staying in Cincinnati.

“I'll eat ramen noodles and watch reruns of Sponge Bob Square Pants,” he said.

Lauren Black of Toledo is facing an even more bleak Spring Break.

“I might be getting laid off. Awesome. So on my Spring Break I will be daydreaming of a better life while I search for jobs,” she said. “I guess you could say that a relaxing week at home has been ruined by the economy.”

And while Lottman knows how she’ll both pay for her trip and avoid racking up credit card debt, others will unfortunately, have to rely on credit, at least a little bit.

“I am going thousands of dollars in debt in loans anyway to pay for school, what's an extra couple hundred bucks?” Alex said. “I am paying for it through money I earned [and my] credit card ... quite simply, you have to pay money to experience things.”

Lottman echoed Alex’s sentiments.

“Screw money,” she said. “It controls way too many of our decisions.”