Friday, July 07, 2006

To the Cor-zine

I never thought I’d see the day when a state would close down all of its casinos for budgetary reasons (I know that casinos were closed down south because of Hurricane Katrina’s devastation – but that is obviously a different situation). I’m not sure how to react to this – I’m not a heavy gambler, so it doesn’t really affect me at all. But, I do know that casinos make a lot of money for state governments, and it is probably in their best interests to make sure they stay open.

Corzine (the governor of New Jersey), basically decided that in order to balance the budget, he needed to be serious – and what better way than to hit the legislators where it counts … in the casinos. I must confess that I don’t know too much about this situation, other than Corzine was hell-bent on balancing the budget, lower property taxes, and that he wanted to raise the state sales tax 1% in order to do these things. I’m not a big fan of raising state sales taxes, since I work in New Jersey and sometimes buy things there.

One thing that I am impressed with is that Corzine went against his own political party with this one – Even if the person is doing the wrong thing, I get excited when a person in office goes against his/her political party (and the opposition), because in my mind, this means less partisan politics – the devil of all government.

The state of Pennsylvania is going to be getting some slot parlors in the next few years, and I’m eager to see how the city of Philadelphia wastes…er…spends the money that they get for this. John Street can’t get these casinos up quick enough so that he can pay for his and all of his family’s retirement. One thing is for sure, Street would never lockout the casinos if he was governor, because money is his middle name (and first name, and last name … although it is hyphenated with corruption).


Rev. Smokin Steve said...

With slot parlors on the horizon in PA, the last thing Atlantic City needed was something like this to make them look bad.

They are already feeling the pinch from places like Foxwoods and Mohegan Sun taking away a lot of their business from the New York area. They will feel more of a pinch once the old ladies from Philly realize they don't have to sit on a bus to go to AC anymore for their slot jones. It will hurt AC's bottom line.

Los said...

Possibly. But, the casinos don't make much money on slot parlors - they make their money on the tables.

El Padrino said...

never fuck with a former CEO of a fortune 500 company...they will eat your children.

See Bloomberg as well.

Jeff said...

When I lived in NY, then-Gov. Mario Cuomo sent NY State Police to malls in NJ and PA and record license plates. NY residents who dared pay less onerous taxes elsewhere received warning letters. (This is why Cuomo became ex-Governor.) Raising NJ state taxes above PA's rate is just stupid.

And, here in PA, Gov. Rendell raised income taxes with the promise of lowering property taxes, which of course never happened.

By the way, the "devil of all government" is not partisan politics. Government does 2 things well: overreact and nothing. Be afraid when the parties agree too easily.

Look to New Orleans as a case study on gambling. PA and PHL will drastically overestimate revenues, plan spending accordingly, then raise taxes when revenues fall short of predictions. Meanwhile, the customers will not be tourists, but rather the poor and elderly -- the neediest people empowered because they "receive the benefits of gambling revenues."

There's a reason gambling is called the "tax on the stupid." And the politicians know it.

Rev. Smokin Steve said...

Perhaps they make more money on the tables. But I have to think that some of those people are lured over to AC for slot play at first, then go to the tables after they are bored with the slots. Maybe not a big number, but it's a piece of the business.