“Having
to pay an additional 3-cents on a 50-cent newspaper is nothing
short of a nuisance for consumers and small businesses alike,”
said Sen. McKinney. Estimates indicate that the tax will
take in between $3.5-$5 million this year in an adjusted
budget that is expected to produce a $47.8 million surplus.
“While I certainly understand the current economic
climate we’re in, we can afford to get this frivolous
tax off the books,” said Sen. McKinney.
The
tax on the sale of newspaper subscriptions and the tax from
newsstand sales have been exempted since 1991 and 1998 respectively.
The reinstatement of the tax was part of the $650 million
deficit reduction plan that was passed last month by the
legislature. Sen. McKinney voted against that measure which
made increases to a number of taxes including a large increase
to the state’s income tax.
Sen.
McKinney said that he was troubled that there was not more
support for his amendment that failed by an 18-15 margin.
“Not removing the tax on newspapers is a clear indication
that the majority party is more concerned with raising taxes
than providing smart fiscal policy. After all, the people
this tax hurts the most are the small business owners and
consumers at the lower income levels.”
“Our
daily and weekly newspapers are an indispensable part of
our democracy. Given the intense competition from 24-hour
cable news stations as well as radio, which are not subject
to sales tax, this tax will put newspapers at a competitive
disadvantage,” said Sen. McKinney. He also said that
while it might be a bit of a stretch, taxing newspapers
is “as close as we can get” to placing a tax
on the First Amendment.