TAX NEWS - 2010

Taxing Tobacco

Lt. Gov. Richard Ravitch not only favors borrowing to close the state's $9.2 billion budget gap, he believes New York shouldn't be bashful about taxing tobacco and alcohol.

"More taxes the better," Ravitch said. "On tobacco and alcohol, the more tax revenue, the better."

The Senate and Assembly are expected to vote this afternoon on Gov. Paterson's latest emergency budget extender, which includes a $1.60-per-pack boost in the state's cigarette tax. Taxes on cigars and other tobacco products would also be increased.

Ravitch to spoke to reporters just after he emerged from a closed-door meeting with Gov. Paterson that Ravitch insisted was strictly about the budget and not about his reportedly diminishing role in the administration.

"The meeting was fine," Ravitch said. "We had a good talk."

Ravitch said there was no tension with Paterson and that he maintains a "perfectly friendly" relationship with the governor.

The lieutenant governor also defended his fiscal plan and blamed the media for focusing too much on the borrowing component. It also, he noted, contained provisions for budget-making reforms and independent monitoring of the state's finances.

"Those were my recommendations," Ravitch said. "There may be better ideas out there and nobody is obligated to follow them and I've never suggested they should. I was asked to do a plan and I did the best I could."