Friday, November 7, 2008

The Newest Bloomberg Brainstorm: Plastic Bag Tax

The Newest Bloomberg Brainstorm: Plastic Bag Tax

In its struggle to make New York more green, the Bloomberg administration has tried discouraging people from using plastic bags. It has taken out ads beseeching residents to use cloth bags and set up recycling bins for plastic bags at supermarkets.

But now the carrots have been put away, and the stick is out: Mayor Michael R. Bloomberg has called for charging shoppers 6 cents for every plastic bag needed at the register.

If the proposal passes, New York City would follow the lead of many European countries and become one of the first places in the United States to assess a so-called plastic bag tax.

City officials estimate that the fee could generate $16 million a year, a figure that Mr. Bloomberg would no doubt appreciate, given the lingering and concussive effects of the global economic crisis on the city's economy.

But while the fee would burnish Mr. Bloomberg's environmental record, it might not be a lasting source of revenue. Just a few weeks after Ireland adopted a similar, though much heftier tax in 2002 - charging shoppers 33 cents a bag - plastic bag use dropped 94 percent, and within a year, nearly everyone in that country had purchased reusable cloth bags. Still, the mayor believes that the 6-cent fee would have a major impact on consumers' behavior.

Environmentalists like the sound of Mr. Bloomberg's idea. But from the corner deli to the high-end grocery store, other New Yorkers are not so sure.

Bloomberg officials say the proposal remains a work in progress. But for now, the plan is to charge customers 6 cents a bag at the point of sale, with 1 cent going to the store owner as an incentive to comply, said Marc La Vorgna, a Bloomberg spokesman.
It sounds like a tax, but officials call it a fee. The distinction is important: A fee requires approval only from the City Council, while a tax requires approval from the State Legislature.

(Source: NY Times)

http://www.theyeshivaworld.com/article.php?p=25620


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