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New York's Wisconsin Moment?

by: phillip anderson

Mon Mar 28, 2011 at 16:01:26 PM EDT


Excellent piece on the budget from New York Communities for Change's Greg Basta:

New York's Wisconsin Moment?

The assault on the working class packaged as "fiscal responsibility" by the likes of Scott Walker has gone viral.  Since Wisconsin, this tactic - force hard working Americans to accept the notion of "austerity", while giving corporations and millionaires tax breaks - has reared its ugly head in Ohio, Indiana, and Florida.  This week, the virus has found a new host - New York.

Over the weekend, New York Governor Andrew Cuomo and GOP Senate leadership agreed on a plan to slash the State Budget  by billions of dollars - including hundreds of millions in cuts to public school funding and to State and City universities, millions more in cuts to homeless services and senior centers.  In addition, the State will allow the Millionaires' Tax to expire, and will not strengthen laws protecting rent regulation for residents of New York City.  All of this is being justified by lawmakers as necessary measures to close the State's deficit.  So let's look at the numbers:

Total money being cut from the budget? About $3 billion.

Total tax revenue NY will be losing by letting the millionaire's tax expire?  $4.6 billion.

Much like in Wisconsin, New Yorkers are being told that it's our responsibility to make sacrifices in these harsh economic times.  This budget will force that issue - thousands of teachers could be laid off,  tuition hikes loom for students at public universities, medical services for groups that need it the most - like senior citizens, the homeless, and those with HIV/AIDS, could become very scarce.  But the wealthiest 3% of New Yorkers are being told, "You deserve a break.  Thanks for all that you do!"  So in essence, many of the Wall Street execs who played a major part in triggering the worst economic crisis since the Great Depression will be rewarded, while the families hardest hit by this crisis are being punished.

And like in Wisconsin, New Yorkers will not take this sitting down.  A coalition called Strong Economy for All is bringing together education groups, labor unions, tenants' rights organizations, homeless advocates, and senior citizens to demand that Cuomo scraps this plan.  This Wednesday, thousands of New Yorkers will join the coalition from throughout the state to tell lawmakers in Albany  that their job needs to be fighting for good jobs, decent wages, a quality education, and healthcare for all New Yorkers.  They've protected Wall Street long enough.  Governor - tax the rich.  They got us into this mess, they need to do their fair share to get us out of it.  Don't put this on the backs of the children, seniors, homeless, tenants, and teachers of New York.  We've been shouldering the burden for quite some time.

In New York, as in Wisconsin (and Ohio, and Indiana) the buzz word among the pro-Wall Street side has been "austerity".  Austerity for who?  New York is one of the wealthiest states in one of the richest countries on the planet.  How can millionaires and elected officials talk to us about austerity while keeping a straight face?  Corporations like JP Morgan Chase pay only 11% of the State income taxes to which they're obligated.  And those of us who make New York run on a daily basis are told we have to accept austerity? No, we will not accept that.  We have not tax loopholes, we received no bailouts.  Our State electeds need to preach austerity to the Wall Street side, and protect the services and programs on which working families rely for stability.

We're asking all New Yorkers to get their voices heard.  We know you want to - roughly 80% of New Yorkers support the millionaire's tax. You deserve better.  To sign a petition to Governor Cuomo, and to RSVP to our rally this Wednesday, March 30th, click here (Go to a college in New York State?  Click here to find out what student groups are doing on your campus).

For more info on the campaign, watch our action at the Capitol last week.

UPDATE: Seems the site at the above linked is getting hammered right now, so I've taken the liberty of posting the entire piece. Hope Mr Basta does not mind.

And speaking of Strong For All, my former colleague Mike Kink says it well and succinctly:

In the give and take of the budget, it's now clear that wealthy New Yorkers are doing all the taking while middle-class and poor New Yorkers are doing all the giving. This budget will make our state's already frightening levels of income inequality even worse.

Also, Liz has some more on what's shaping up for Wednesday at the capitol:

Capitol Occupation?

Maybe Wisconsin really can come to New York.

A reader forwarded an alert sent out yesterday about an "Albany occupation" planned for this Wednesday in opposition to what's being billed as Gov. Andrew Cuomo's proposed budget.

The "peaceful" protest will include New York Communities for Change (formerly ACORN), Right to the City, SUNY student groups and others, according to the e-mail, which continues:

"They expect at least 1,000 to participate in the occupation during the day on Wednesday and at least 500 to stay in the capital (sic) overnight."

"FYI, as long as the legislature is in session, anyone has the right to be in the capital, even to protest inside it (although not in the Senate and Assembly chambers themselves). The organizers have notified the police of their intentions and no arrests are expected."

"The situation will be very fluid, however, and the occupiers on the ground will be the ones who ultimately decide how long to continue the occupation and what course of action to take, although precautions will be taken at all times to avoid anyone being exposed to arrest who doesn't want to be."

"This is a very important action that I think we should support as strongly as possible. Please forward this to any and all activist listservs you are on. As Cuomo is currently preparing to bulldoze his way to an on-time, incredibly anti-working class budget, we need to make sure that our voices are heard. If you'd like to participate, get in touch with the organizers listed in the announcement below. Thanks!"

This is reminiscent of the so-called "week of rage" that occurred during the Wisonsin budget battle, when protestors refused to leave the building and the courts ultimately got involved.

And, by the way, do keep in mind that the Governor and Skelos' crew are axing the extension of the so called Millionaire's Tax, even though a new Siena poll showing that a whopping 71% of New Yorker's favor that extension. That includes the support of 67% of Indys and 54 % of Republicans.

So, Cuomo and Skelos are basically telling New Yorkers that not only do they not care what they think, but that they are going to take out on their kids and the elderly and the poor and working classes.

Which leaves one question. What are we going to do about it, New York?  

phillip anderson :: New York's Wisconsin Moment?
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Sounds good to me! (4.00 / 3)
Sadly, I'm not in the Albany area, and it is not feasible for me to be there on Wednesday, but the movement has my full support.

awesome! (4.00 / 1)
working on finding ways for people to participate or at least be able to see what is happening even though they can't actually be there.

stay tuned...

TODAY is day one. It always is.


[ Parent ]
I know lots of people in the Albany area (4.00 / 3)
and I'm promoting the rally via Facebook. Hopefully a couple will show up!

[ Parent ]
excellent (4.00 / 1)
well done.

TODAY is day one. It always is.

[ Parent ]
what is it about special tax breaks for millionaires & billionaires? (4.00 / 2)
...in Washington, Republicans are screaming about the supposed horrors of deficits (though they never had a problems committing to unlimited amounts of money creating deficits to needless start wars under George Walker Bush), and yet, somehow, find a need to give NEW tax breaks to millionaires and billionaires (you read that right...there is no such thing as an "extension" of tax breaks for the rich...those were set to expire, according to law, so any additional tax breaks for the rich are new and should be considered "special tax breaks" for the rich (which they are). And, in Albany, Republicans and Democrats alike are screaming about the need for austerity because of a decline in revenues...and yet...they seem to have no problem finding more revenue to fund more tax cuts for millionaires and billionaires, while cutting funding for schools.

What gives?

This is insanity.  


Tonight I Was At A Meeting (0.00 / 0)
Having to do with local civic issues but one subject that kept coming up was that we should let our elected "leaders" know that we DON'T WORK FOR THEM and that THEY WORK FOR US.  The way we voted for them we can vote them out.  

Phil, sorry I can't be in Albany tomorrow.  I have a Community Board Meeting which will deal with another mini mansion going up in my neighborhood.


A grave error (0.00 / 0)
I am a strong supporter of organized labor and I believe that the unions were totally justified in their protesting at the capitol in Wisconsin.  The right to organize labor is a fundamental right that is guaranteed by the constitution and must not be infringed upon.  That being said, a barnstorming of the capitol in New York would be a grave error that would pit public opinion against them.  The cuts were not nearly as harsh as they could have been and the budget is balanced with no tax increases.  The budget that Governor Cuomo (who is extremely popular) forced Useless Deany and King Shelly into accepting is fiscally sound and gets us back on the right track (away from record deficits).  Let him lead!

Respectfully disagree (4.00 / 2)
This isn't just about labor unions or public perceptions of either the unions or the politicians.  Nobody's going after collective bargaining rights here.  But they're going after plenty more to warrant a good barnstorming.

This is about three billion dollars not being equal to negative four billion dollars.  That's three billion being taken away from us, the working class, and four billion being given away to them, the screwing-the-working class.

That's not what I call leadership.  Governor Cuomo is showing zero leadership here because he is concentrating on creating the perception of leadership so that sonny boy can do what daddy couldn't even after the 1984 speech.  

It's politics.  Cutting stuff is good, giving money to my donors is good, getting a budget on time is good, higher poll numbers are even better, right?

Wrong.  We'll see just how popular this fake liberal remains when we show him what real, working class leadership actually is.


[ Parent ]
Have you seen the deficit? (0.00 / 0)
In a recession, it is my belief that if you can you should cut taxes and increase spending, thus to pump more money into the economy.  However, this cannot be done on a state level with a budget that is at the $10,000,000,000 mark.  Therefore, we have to make the necessary cuts in a humane way without raising taxes to take money out of the economy.  Governor Cuomo's budget does have some painful cuts, but he doesn't go as far as Paladino would have and he's clearly not trying to throw as many people as he can to the wolves.

This is a time for bipartisan action, we need to stand with our new governor to create a government that is efficient and effective in serving the people.  Government doesn't need to meaner, it does need to be leaner.  We cannot sustain the current course we are on.  


[ Parent ]
Cut Taxes, Increase Spending, Lower Deficit, Huh? (0.00 / 0)
Your belief is unfortunately incorrect.  And I'm bewildered that you choose to follow this incredibly flawed logic: Somehow, reducing the amount of money you are taking in while increasing the amount of money you are putting out is going to reduce the difference between what you have and what you owe?

I'm sorry, but mathematically less minus more does not equal lower deficits.

Besides the point, the deficit doesn't matter one bit.  No deficit does.  It'll all be paid off someday, slowly; these politicians have people completely fucking up basic arithmetic by selling the impression that The Debt has to paid off now or else it's going to rend more flesh from the economy.  The Debt had nothing to do with why we are in this recession/depression in the first place, it has nothing to do with while we're still here.  

This is the cause of greedy capitalists whose irresponsible actions have adversely affected all of us, then got bailed out by us, and now we are being asked to do with less while they are being asked to pay back less.   It's that simple.  It's not fair.  And that's why you're wrong.

And just how do you get a deficit to begin with?  By spending more money than you take in!  In other words, by following the stupid "cut taxes and cut spending" mantra that makes it sooooooo easy to get elected, even if your daddy wasn't Governor before you.

By the way, taxing rich people doesn't "take money out of the economy."  That assumes that rich people aren't part of the economy; they are!  They're the part of the economy that is hoarding as much money for themselves, so really, they are the ones keeping the money out of the economy in the first place.  Taxes just move it around to different spots in the economy, the places where the money is needed, the places that weren't good enough to be considered "humane" for The Profit Motive.

Sorry, but I can't stand with a Governor who sells math equations like 1-2=3, who got into office because of his name alone, and who continues the bipartisan bias toward the wealthy at the expense of the workers.


[ Parent ]
Horse-poo (edited title to be family friendly :) ) (0.00 / 0)
Firstly, Governor Cuomo has significant accomplishments outside of his Fathers shadow.  I would say that being secretary of HUD and being Attorney General merit one's election as Governor.

The whole point of that logic is to stimulate the economy.  Increased revenue will lower the deficit, this works when deficits aren't out of control.  In New York we have a different situation, by the law the budget must be balanced, we can do that by raising taxes, cutting spending or borrowing.  Having a huge debt can hurt the states bond rating and increases payments on the debt, it's healthier to have as low of a debt as possible.  This state is over-taxed as is, no one can afford any more tax increases.  We need to cut the over bloated bureaucracy that has saddled this government.

Cuomo's formula is -3+3(spending cuts)=0.  It's sound mathematics.  I stand by him and support him.  The status quo must go.


[ Parent ]
Bullshit (edited to be realistic) (0.00 / 0)
The only reason Andrew was HUD secretary or AG was because he was his father's son.  The only reason he's governor now is because Spitzer fucked up ahead of time.

The middle class is overtaxed because the super rich are undertaxed.  They can afford more tax increases to help pay down the debt they incurred by paying such low taxes for so long.  Don't fucking tell me that a millionaire can't afford to pay more taxes, because it's bullshit.

The status quo is that the middle class pays too much in taxes and gets less in essential services while the wealthy pay less in taxes and have no need for those services in the first place.  If that's what you mean, then yes, it has to go.

But it's not going anywhere with Status Cuomo and his textbook political pandering to believers in storybook economics.


[ Parent ]
So? (0.00 / 0)
The fact that he had more doors available to him because of his father is irrelavent, he had to walk through them himself.  He has, his record as HUD Secretary and AG were outstanding.  He's proven again and again in his life that he's ready to be the Governor.  The fact that he bullied the normally dreadfully slow state legislature into passing an on-time budget proves his capabilities.

Raising taxes on rich people is not going to solve the problem in the long run.  We're on an unsustainable spending track and have been since the Pataki years.  Cuomo's budget uses a scalpel and not a sledgehammer.  This budget is a work of art.  As someone who is under 30, I feel much better knowing that we have a Governor who is trying to re-make Government in a more efficient way so I can continue to stay here.  The cuts are reasonable and I do not believe the world will end because of them.

Again, and as President Clinton pointed out in the 90s, we need "Leaner, not meaner" Government.  


[ Parent ]
A work of art? (0.00 / 0)
We'll see what kind of reception it gets at the gallery on Wednesday...


[ Parent ]
Many of the cuts proposed by this budget are painful, but ultimately necessary and reasonable (4.00 / 1)
However, it is an affront to human decency that they are being juxtaposed with tax breaks for the affluent.  

[ Parent ]
Huh? (0.00 / 0)
There are no tax breaks for the wealthy, he is just not proposing an additional tax.  There is a difference.

[ Parent ]
He's allowing an existing tax to expire. (0.00 / 0)
I'd say that constitutes a tax break.

[ Parent ]
No, by definition it isn't.... (0.00 / 0)
It's just the end of an additional tax.  A tax break would be lowering the regular tax rate.

[ Parent ]
and the wealthiest new yorkers (4.00 / 2)
have seen their state tax liablity cut in half over the last three decades. NY has a highly regressive income tax structure, one that has evolved over the last few decades to specifically benefit the wealthiest amongst us. They now pay a smaller percentage of their income in state and local taxes (9.4%) than the poorest among us (9.6%) or the ones who are shouldering the burdens of all those tax cuts for the rich, the middle class. The pay the highest percentage of all new yorkers, a whopping 12%.

the richest of the rich in this state understand fully well what the term "tax break" means. they are the ones that have gotten them consistently.


TODAY is day one. It always is.


[ Parent ]
On the federal level.... (0.00 / 0)
On the federal level I agree with you, but on the state level I do not think that any more taxes are justified.  Cuomo is right.

[ Parent ]
then i take it (4.00 / 1)
you believe that shifting more and more of the state tax burden onto the poor and middle class is justified?

and who the hell is talking about the federal level? certainly not me.

TODAY is day one. It always is.


[ Parent ]
No.... (0.00 / 0)
Taxes should be cut for the poor and middle class.  I only brought up the federal level because I believe that is a place where income inequality could be corrected, but state's have a harder situation than the feds.  I believe that a budget without any tax increases with a deficit of this size is remarkable.

[ Parent ]
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