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CNN American Morning, April 15, 2009 CNN American Morning, April 15, 2009 Creative Taxation: Your Taxes, The Real Deal is they’re cutting spending. They’re cutting back on programs. They’re delaying projects. They’re putt- ing in hiring freezes. JOHN ROBERTS: Thirteen and a half minutes after the hour. Welcome back to the Most News in the ROMANS: And they still have to raise more Morning. It’s the 15th of April and you know what money. Sin taxes are a perennial recession favorite that means. Time to settle up with Uncle Sam. Dead- like taxes on tobacco. line day for filing those returns or filing an extension. DONALD BOYD, NELSON A. And cash-strapped states are planning some in- ROCKEFELLER INST.: This time around teresting ways to take more of your money. What wealth looks like it’s the new tobacco. We’re see- else is new? ing quite a few states that are at least considering income tax increases on upper income earners. Christine Romans now with the real deal about We’ve seen it in New York and California al- your taxes. Good morning to you. ready. CHRISTINE ROMANS, CNN BUSINESS ROMANS: Simply put, the math doesn’t add CORRESPONDENT: Good morning. Good morn- up. States are bringing in less at a time when their re- ing. cession-weary citizens need more services. Fees on OK. States hit hard by the recession that had to hunting licenses and taxes on gentlemen’s clubs dig deep to close their budget gaps. That means can’t close the gap alone. they’re getting creative to raise more money and whether it’s fees or taxes, it means more money from BOYD: To see significant increases in - is you. what I would call the go-to taxes, the income tax and the sales tax. And if you want to raise signifi- (BEGIN VIDEOTAPE) cant amounts of money, that’s where states are ROMANS (voice-over): What do pole dancing, likely to go. fishing licenses, car registrations, and a state car pass (END VIDEOTAPE) ROMANS: And let’s be have in common? They all could get more expensive honest, they need to raise significant amounts of as states slap on taxes and fees in a scramble to raise money. He says raising taxes is the last thing that money. states do in a crunch. It’s politically dangerous, of Colorado wants a fee for background checks for course, for politicians. None of us like it. But, he new gun owners. The price of a Michigan State park says he expects widespread tax increases starting pass may rise. In Nevada, lawmakers are considering next year just as the recovery is taking hold. But look attacks on legal brothels and an increase in Vegas ho- for those tax increases to be temporary. tel taxes. ROBERTS: There’s a growing number of peo- And in California, there’s even a proposal to tax ple, though, who say we are so far in the financial marijuana. Another to put a sales tax on porn. States hole that we’re going to have to have some semi-per- are scraping for every penny. manent, if not permanent tax increases to pay for BERT WAISANEN, NATIONAL CONF. OF this. STATE LEGISLATURES: What they’re doing first 1 ROMANS: You’re absolutely right, John. A lot You know looking far out, that means it’s math. of people are saying that. You look at the states. They You either cut services. You either grow your reve- have to close their budget gap every year, but the fed- nue, or you tax. So some combination of those three eral government doesn’t and that keeps running these things has to happen. bigger and bigger and bigger deficits. ROBERTS: Christine, thanks for that. 2.
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