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Albany Watch

Insights and tidbits from the state Capitol

State GOP Senate: Read Our Lips

March
6

Republicans in the state Senate said today they will oppose Gov. Eliot Spitzer’s proposal to increase the motor vehicle insurance fee from $5 to $20 on cars registered in New York.

Republicans seem to have found their war cry for this year’s elections: Oppose all new taxes and fees.

Already, the GOP is opposing an Assembly plan to increase income taxes on the rich. They are, however, joined by Spitzer on that one. Spitzer has said he will oppose any new taxes.

But the Republican senators, who hold just a one-seat majority in the Senate, are also taking aim at about $1.7 billion in new fees and “loophole” closers that Spitzer wants to enact to increase state revenue. They say the measure equates to a tax increase, yet they haven’t laid out how they would close the state’s $4.6 billion budget gap without it.

Still, they are starting their fight over what they’ve labeled the “Spitzer Car Tax.”

The car insurance fee is collected annually from for each insured motor vehicle.  The fee was increased from $1 to $5  in 2003, Senate Republicans said. It has been scheduled under current law to be reduced to $1 on July 1.

“Upstate New York’s drivers represent 32  percent of New York’s population and 44  percent of  New York’s drivers,” said Sen. Thomas Libous, R-Binghamton, who heads the Senate Transportation Committee. “This is clearly a misguided tax on upstate that hardworking New Yorkers can’t afford.”

This entry was posted on Thursday, March 6th, 2008 at 1:13 pm by Joseph Spector.
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A behind-the-scenes look at state government and politics from the Capitol bureau of Gannett News Service.
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About the authors
Jay GallagherJay Gallagher has covered Albany for Gannett News Service since 1984 and has been Albany Bureau chief since 1989. He`s a native of the Boston area and likes to point out that in this millennium, the score is Red Sox 1 championship, the Yankees 0.
Cara MatthewsCara Matthews has been a statehouse correspondent in the Albany Bureau since August 2005. Prior to that, she covered Putnam County government and politics at The Journal News for nearly five years. Before that, she worked at newspapers in Connecticut and covered the state Legislature for one of them.

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