What is an Obesity Tax?  Well, according to NY state governor, David Patterson, it is a new tax idea to raise money to cut the state deficit. The tax would be applied on all non-diet sodas sold in New York State. This is completely outrageous. How can the governor get away with this?

Well, it is only a proposal. In fact, recent scientific studies have shown that people who drink diet soda also gain weight. So his logic seems a little skewed. And therefore, seems a little unfair to single out soda when beverages such as fruit juice can contribute to obesity.

The Governor is trying everything in his power to make up for shortfalls in the state deficit. He also plans on raising cash by applying the following tax moves:

reviving the state sales tax on clothing
Changing funding of hospitals and health care that could shift more health costs on individuals and employers
Lifting the limit on how much state tax can be charged for gasoline
Eliminating legal exemptions in the income tax that he considers “loop holes”
Making further adjustments to make sure all taxpayers are paying their fair share
Increasing taxes on insurance policies
Increaseing by $600 the tuition (about 15%) for state residents attending the State University of New York and City University of New York.

His 2009-2010 budget proposal is an effort to cutting spending and increasing revenues to deal with deficits he projects will total $47 billion over three years. The current budget is about $120 billion.

One bright spot of his budget proposal includes a call for an increase in the welfare grant beginning in 2010, the first since 1990; changes to make more poor New Yorkers eligible for government-subsidized health care; and more services for returning veterans. He proposes

Making it easier for the poor and working poor to get government health coverage by eliminating some anti-fraud measures, including face-to-face interviews, finger printing, and an asset test.
Allowing 19- and 20-year-olds who do not live with their parents to be eligible to enroll in Family Health Plus, the state health care plan, under the same rules as if they did live with parents.
Income-eligible public workers will also be able to enroll in the state’s Family Health Plus coverage.
seek a federal waiver to allow adults at 200 percent of the federal poverty level – about $20,800 a year – to be eligible for Family Health Plus
Take $282 million in funding for graduate medical education and redirect to the state’s pool to cover the care of indigents at teaching hospitals and to
Increase funds for indigent care in clinics.
Hire two workers to help alert returning veterans and their families of government services and to create a mobile outreach service that will travel the state to meet with veterans.
Increase funding to food banks, pantries, soup kitchens and shelters.
Increase funding in programs to prevent lead poisoning in children, mostly in poor city neighborhoods.
Create a $1 million obesity prevention program.

If obesity is an issue in your life and you’re looking for ways to lose weight, here are some great weight loss ideas.

The bad economic times are not only effecting U.S. citizens, it  is effecting IRS interest rates. Starting on January 1, 2009 the IRS will drop interest rates for underpayments and overpayments by one full point.

The new rates will be:
Five (5) percent for overpayments [four (4) percent in the case of a corporation];
Five (5) percent for underpayments;
Seven (7) percent for large corporate underpayments; and
Two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000.

The Internal Revenue Code interest rate is recalculated quarterly.  That rate is calculated using the federal short-term rate plus 3 percentage points for overpayments and underpayments for everyone except corporations.

For corporations the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. 

The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.  The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The 2009 IRS interest rates are calculated from the federal short-term rate during October 2008 to take effect Nov. 1, 2008, based on daily compounding.

Revenue Ruling 2008-54, announcing the new rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2008-52, dated Dec. 29, 2008.

The impact of this measure means less the IRS will recoup less money as it means less for the American citizen.

For more info log onto www.irs.gov

Charles Rangel, the chariman of the House Ways and Means Committee, helped  preserve a lucrative off-shore tax loophole for an oil drilling executive. This issue has prompted the House ethics committe to expand the inquiry on the matter.

Rangel is a powerful New York Democrat who insists the charges are false. But is it just coincidence that the businessman linked to the scandal pledged $1 million for a planned Charles B. Rangel Center for Public Service at the City College of New York?

Beyond suspicions about the offshore tax loophole worth tens of millions, the panel must look into Mr. Rangel’s use of congressional letterhead to solicit support for his eponymous center. Then there’s his use of rent-stabilized apartments in Harlem at cut rates and his failure to pay taxes and disclose $75,000 in income from a Dominican villa on which he enjoyed an interest-free mortgage.

The ramifications are great. It could lead to Rangel giving up his chairmanship while the investigation proceeds.  House speaker Nancy Pelosi is in a tough position – she needs to act on the matter on this Democratic party member.  She needs to urge Rangel to step down.  If he doesn’t, she needs to remove him.

Ethics violations by a public servant in such a high position cannot be tolerated.  His power in making decisions regarding huge fiscal and tax issues means there can be no doubts about the leadership’s priorities.