The state of New York is facing a 7.4 billion dollar deficit and Governor Paterson wants to close that gap by taxing sugary beverages and cigarettes.
So FOX 40 hit the streets of Binghamton to find out what this will mean for convenience stores and their customers.
If Governor Paterson gets his way, every time someone buys a pack of cigarettes or a sugary beverage from a convenience store it will cost them more.About a dollar more for cigarettes, and 16% more for a bottle of soda.
Taxes some residents say are unfair.
“$51.40 just pure tax on one carton of cigarettes, that’s insane,” said the owner of Cordisco’s, John Cordisco.
“They are always harping on cigarettes and soda, but what’s wrong with beer, beer kills just as much as cigarettes do to,” said Whitney Point Resident, Rosann Larue.
In his budget address Tuesday, Paterson said the taxes would save lives and billions in health care costs, but these long-time smokers don’t agree.
“I’ve been smoking for 30 years and I keep paying more every time it goes up, so I don’t see it as much of a deterrent,” said Binghamton Resident, Todd Forkey.
“It might slow down me smoking, but people will still pay,” said Binghamton Resident, Marcus Melvin.
The taxes would also affect convenience stores.The owner of Court Street Fuel Stop says cigarettes make up 40% of his total sales, and another tax would turn customers away.
“I’m going to lose more business on this if the price goes up, then business is going to go down for sure,” said Mike Gill, The Owner of Court Street Fuel Stop. The owner of Cordico’s says he’ll have to raise prices just to compensate.
“All the other prices in the stores go up to account for the loss in sales, because that’s $1.08 your not spending in the store anymore,” said Cordisco.
Cordisco also says the taxes would prompt local customers to cross the border to buy their goods at a cheaper price.
“There’s a term called diminishing retuns, that you end up with less than when you started, the boot legging will be even worse,” said Cordisco.
For now, Paterson’s tax proposals are just that–proposals, convenience store customers and business owners will have to wait and see what the legislature decides.