Senator Lavalle Questions Governor’s Rational For Following Utility Tax Hike With Consumer Outreach
April 8, 2009
(Long Island, N.Y.) Senator Kenneth P. LaValle was puzzled to learn that Governor David Paterson had announced an outreach program for consumers who can’t pay their energy bills just days after pushing through a massive utility tax hike that will make it even tougher for people to pay them.
“Governor Paterson and his Democrat colleagues voted to increase taxes on electricity and natural gas by more than $600 million,” said Senator LaValle. “Their action will raise the energy bills of every consumer and cost thousands of jobs across the state. Now, the Governor wants those people who will no longer be able to pay their utility bill to know their legal rights.”
Long Islanders already pay some of the highest energy costs in the nation. The new utility tax will cost the average resident hundreds of dollars a year, while a small business with a $10,000 electrical bill will see its assessment go from $333 to $2,000 a year. Senator LaValle noted that the utility tax hike will take effect beginning April 1, 2009.
Senate Republicans proposed a budget amendment to strike the disastrous utility tax from the budget. Senate Democrats defeated this proposal and stood with the Governor in support of the tax hike.
The new state budget increases taxes by a total of more than $8 billion and will increase the taxes paid by an average family of four by $2,400 a year. This includes the decision by the Governor and the Senate and Assembly Democrats to eliminate the STAR property tax rebate checks.
“Perhaps the Governor will announce another outreach program for people who are going to lose their homes because they can no longer afford their property taxes,” Senator LaValle said. “This wouldn’t even be an issue if the Governor and Senate Democrats had supported my budget plan that would have reduced spending, cut taxes and created jobs.”
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