Friday, February 06, 2009

Even The NY Times Understands...

If you tax something, you get less of it.....

Anybody who has paid for theater tickets recently in New York City knows what a big hole they can leave in the family budget. Gov. David Paterson of New York wants to make that hole even deeper with a new theater ticket tax.

The proposal could increase ticket prices by about 8%, which could dim Broadway’s lights as tourists start thinking twice about that vacation in Manhattan. If tourism slumps in the city, the state’s budget problems would surely worsen along with it. Rocco Landesman, the president of Jujamcyn Theaters, summarizes his latest pleas to lawmakers this way: “Please, don’t kill your golden goose.”

Thirteen Broadway shows have closed within the last month, including spectacles like “Spamalot,” “Hairspray,” “Spring Awakening” and “Young Frankenstein.” The last thing New York City needs is for ticket prices to go higher and more of the Great White Way to go dark.

~NY Times Editorial

HT: Carlo DiPietro

19 Comments:

At 2/06/2009 11:35 AM, Blogger lineup32 said...

Well lets end taxes, that should be a positive for the economy and then ball an chains such as higher education cost could be eliminated.

 
At 2/06/2009 11:44 AM, Anonymous Anonymous said...

Professor;

I just stumbled upon your website (from Dr. Russell Roberts’ site) and I appreciated your writings.
I'm often frustrated by presumably intelligent people, many from left of center, who continue to dismiss the impact of higher taxes on the economy or simply disregard this in some utopian notion that their social programs are either too important not to fund or that they will, in and of themselves, pull the economy out of its funk (ie – green initiatives). I often find myself as the lone voice against many of my aspiring PhD cohorts on many of these points. The distressing part is that they take the Keynesian model as gospel, which is reinforced by professors of distinction.
In any event, I enjoy your mussing and have put your blog into my RSS feeder.

Steve
www.thescholarsforum.org
Ex Scientia Lux
“From Knowledge Light”

 
At 2/06/2009 11:46 AM, Anonymous Steve said...

Lineup32;

Unless you’re being facetious or I’m completely misreading your comment, what’s your point?

Ex Scientia Lux
“From Knowledge Light”

 
At 2/06/2009 3:18 PM, Anonymous Anonymous said...

While one doesn't want to kill the golden goose, you does want to harvest the eggs. I am generally against taxes; however, if the governor is not willing to reduce spending, this is as good an entity as any to increase taxes on. Theater tickets are not a necessity and therefore those who pay the tax are doing so voluntarily.
JCarr

 
At 2/06/2009 3:19 PM, Anonymous Anonymous said...

Make that "one does want to harvest the eggs."
JCarr

 
At 2/06/2009 4:14 PM, Anonymous Anonymous said...

"Theater tickets are not a necessity and therefore those who pay the tax are doing so voluntarily."

Have you heard of derived demand? If tickets to theater become more expensive, some people may decide to vacation somewhere else besides New York. When that happens hotels, restaurants, and any other industry that benefits from tourists may suffer. There is more to the tax than just the 8% tax on tickets, there are plenty of side effects that go along with it.

 
At 2/06/2009 5:05 PM, Anonymous EJ said...

People also have to understand that levying taxes on non-essential goods is disaterous. When the elestaistiy of demand (the demoand responsivness to price) is high, a tax will destroy demand. This is what happened with the luxury taxes passed in 1993. Among other things a federal excise tax basically destryoed the yaught building industry and the same reps who were screaming for the tax were calling for its appeal two years later.

There is a reason why we tax alcohol, cigaretts and gasoline. There are few substitutes to the demand is not very suseptable to price change. There are many alternatives to thearter tickets and as a result a tax will reduce demand sustantially. And as people have pinted out, with that demand is less consumption of supporting services such as hotels, resteraunts etc. This is a dumb move.

 
At 2/06/2009 5:28 PM, Anonymous Unscripted Thoughts said...

Wow....I think I the Devil must be wearing a fill length mink coat while making his rounds!

 
At 2/06/2009 6:20 PM, Anonymous Anonymous said...

This kills me.

Aren't the people that go to Broadway shows "rich" liberals typically?

Can't they afford it?

Perhaps they can link the Boradway ticket tax to healthcare for children?

That way, rich liberals can get entertained and do something "good" at the same time.

Win/win, right?

 
At 2/06/2009 10:25 PM, Blogger VangelV said...

"lineup32

Well lets end taxes, that should be a positive for the economy and then ball an chains such as higher education cost could be eliminated."

If theatre tickets are critical to funding education how do kids who don't live in NY ever get educated? And the last time I looked NY spent a hell of a lot for education without getting much value in return. Perhaps it is time for the state to cut taxes and spending instead of rob citizens.

 
At 2/06/2009 10:28 PM, Blogger VangelV said...

"if the governor is not willing to reduce spending, this is as good an entity as any to increase taxes on. Theater tickets are not a necessity and therefore those who pay the tax are doing so voluntarily."

I take it that you got your education from one of the NY schools? The governor needs to show some courage and cut spending. What the city can't afford are more job losses because tourists can get a better deal and just as good theatre in other cities.

 
At 2/06/2009 10:44 PM, Blogger OBloodyHell said...

> If you tax something, you get less of it.....

Whoever wrote the piece understands it. The rest of the staff at the NYT is still searching for a semblance of a clue, and finding bupkis.

 
At 2/06/2009 11:01 PM, Blogger QT said...

Greetings Steve,

It is difficult to be the lone voice in the wilderness. Found "Commanding Heights" was very helpful to understand Keynesian economics through understanding the historical frame of reference. When one understands the historical context, it is far less frustrating.

It's also a very well entertaining and well written book.

Nice to have another fellow traveller.

 
At 2/06/2009 11:03 PM, Blogger QT said...

OBH,

Haven't heard from you in a while. Nice to see you.

Have to agree. Where does one file taxation in a recession other than the cylindrical file?

 
At 2/07/2009 1:46 AM, Blogger +Baker said...

Interesting post.

http://bakerswealth.blogspot.com/

 
At 2/07/2009 10:47 AM, Anonymous Anonymous said...

VangelV. I am not from NY and have never attended a NY school. I am a fiscal conservative, and, like you, recommend a decrease in all taxes, and further recommend a decrease in state spending. However, if the state government is not willing to reduce spending and the budget must be balanced, then taxes must be raised somewhere. Better on theater tickets than on a myriad of necessities.
JCarr

 
At 2/07/2009 12:10 PM, Blogger VangelV said...

"I am a fiscal conservative, and, like you, recommend a decrease in all taxes, and further recommend a decrease in state spending. However, if the state government is not willing to reduce spending and the budget must be balanced, then taxes must be raised somewhere. Better on theater tickets than on a myriad of necessities."

But that it the point. Killing an industry that helps to support New York's economy to fund state programs is not a good idea. What gives the state government the right to punish people who live in the city of New York to fund programs that are of benefit to others in the state?

 
At 2/07/2009 8:06 PM, Blogger OBloodyHell said...

> Have to agree. Where does one file taxation in a recession other than the cylindrical file?

This depends on the goal, Progress or Congress...

:oD

 
At 2/09/2009 9:21 AM, Anonymous Anonymous said...

Maybe if it were called "The Great African-American Way"?

 

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