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Daily News: Local business owners darn unhappy with new state budget

By Howard B. Owens

Here's a good bit of writing and reporting from Scott DeSmit on the pinch, if not outrage, from local business owners over the fee and tax increases in the new state budget.

Great lead:

The New York state budget will be enacted this week and you'd be hard-pressed to find anyone who isn't harboring thoughts of revolution.

The print edition includes a good breakout box of 19 increases hitting consumers and businesses.

Among the largest, up to 5,000 percent increase in cigarette taxes.  As Scott writes, you read that right: 5,000.

Jeff Heubusch, owner of Southside Deli on Ellicott Street in Batavia, said he already knows what he's going to do about the new fee. He's not going to pay it.

"I definitely won't carry cigarettes," he said. "The profit margin just isn't worth it. If I stop selling them, so what? Our main business is food."

Heubusch said he would have to pay $2,500 to sell cigarettes.

"We used to sell 150 cartons a week in the 1990s," he said. "Now, we're lucky to sell 20 a week. I'm sure there's a motive for this. I think what's going to happen is you'll find that instead of 50 places to buy cigarettes, you'll be down to two or three."

Read the whole thing.

Gabor Deutsch

The funny part of this stupid cigarette tax increase is that this is the way NYS fights the Indian reservations? They have already raised their prices on tobacco and gas. Put all the American owned business out of the market and you can charge wat u want to for scarce supply with high demand. And then they will settle to pay NYS a small tax. But the moral of the story is u can blame the Native Americans for supplying Americans with bad medicine like tobacco. History repeats itself. Let us offer the Natives some "fire water". If its true that many people will quit smoking then arent we losing tax money? and if its a health care issue doesnt healthier people mean a decline in health care business ? Or does the government think that the only smokers are the people on welfare that get free health care from NYS and the system ? Interesting........

Apr 6, 2009, 3:13pm Permalink
John Roach

The high tax on cigarettes had two goals: (1) eliminate smoking and (2) pay for additional health care for kids.

If they get number 1, where do they get the money for number 2?

Answer, higher taxes later on everything else because they will say you can’t cut health care. Meanwhile, stores near the boarder in NJ, PA, Vermont, etc will see a boom in business from NY and the Reservation stores will make a ton of money.

Apr 6, 2009, 3:41pm Permalink

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