Bush Fiscal Crisis:
The benefits from the 2003 Bush tax cuts to the typical
Partly in response, NY enacted broad-based tax and fee increases that more than offset the cuts in federal taxes for the vast majority of New Yorkers.†† Given Governor Patakiís pledge not to increase taxes, this will mean more attempts to enact cuts in† 2003/2004.
Examples of some of the tax and fee increases include:
The state sales tax, which
falls disproportionately on lower income families who spend most or all of
their income, was increased by .25%, and by an additional .125% in
v The permanent exemption on sales tax on clothing and footwear was eliminated and replaced by a two-week tax holiday for these items.
v Fees were increased on numerous items including tires ($2.50.tire), motor vehicle fees (driverís license renewal increased to $35; vehicle sale fee increased from 1 to $5; title fee from $5 to $10; license plate fee from $6 to $15; vehicle insurance fee from $1 to $5), hospital revenues (.7% assessment on gross revenue), home care service revenues (.6% on gross revenues), real estate transactions (property transfer fee increased from $25 to $50; fee for broker/dealer statements from $20-800 to $30-1,200), and many others.
v There was a 7.5% cut in state funding to local social services administration.
v In K-12 education, the NY Education Dept. reports an average 7% increase in school taxes in NY counties.Even with these increases, teachers are being laid off in many districts while class sizes continue to increase.
In higher education, "
v The conservative NY Fiscal Watch estimated that the tax increases in NYC would result in job losses of more than 18,000 in the private sector.
 Taken from figures from Citizens for Tax Justice - Figures for lowest 60% calculated as average of the tax cuts for each of the lowest three quintiles (Average of $72, $421 and $723 = $429)
Given the Legislatureís successful overriding of Patakiís 119 budget vetoes for the current year, and the consequent conversion of many proposed cuts into tax increases, it is uncertain what the outcome will be next year, though it is likely to once again include battles over the balance between service cuts and tax increases.
 See http://www.osc.state.ny.us/reports/budget/2003/enactedbudgetreport.pdf where the appendices detail a 6 page list of new and increased fees and assessments.
 See http://albany.bizjournals.com/albany/stories/2003/08/04/story4.html† for median home values in