WFP: "Cuts Alone Won't Fly With Voters"; Calls For Increased Taxes On Wealthy

by: robert.harding

Mon Dec 15, 2008 at 13:41:38 PM EST

According to a poll conducted by Kiley & Company, and commissioned by the Working Families Party, the vast majority of New Yorkers are in strong opposition to the planned cuts by Gov. David Paterson and are in strong support of a solution to the State's budget crisis that uses a combination of both some spending cuts with some tax increases on New Yorkers who make more than $200,000 a year.

" This poll shows that New Yorkers are speaking loud and clear, and Governor Paterson and Albany legislators would do well to listen: they do not want the solution to this budget crisis to just be a giant swing of the axe," said Dan Cantor, Executive Director of the Working Families Party. "It's clear that New Yorkers are nearly united behind a solution that combines prudent spending cuts with sound tax increases on those that make over $200,000 that would both restore fairness to the tax system and help raise the necessary revenue to close this budget gap."

The poll showed that New Yorkers were strongly resistant to the proposed massive cuts to healthcare, education programs, and the safety net. When asked whether the state should "seriously consider" a list of budget proposals in order to close the budget gap, or should "definitely not consider taking that step," between 60% and 75% of all voters said Albany should "definitely not" consider any of the following steps:

· Reducing the amount the state would reimburse hospitals for services provided under the Medicaid program (60% say "definitely do not take that step")

· Reducing state funding for Medicaid and other health care services by $1.7 billion over the next year and a half (65%)

· Cutting state aid to public schools by $1.4 billion over the next year and a half (75%).

Cutting is the easy way out. The real solution is finding more revenue sources. The proposed millionaires tax would be a great revenue source, but it has fallen on deaf ears.

These cuts will do nothing except rob New Yorkers of important services that are provided to them. Whether it is education or health care, these are important parts of the state budget that will have a far-reaching effect.  

To Cut, Cap Or Tax: Addressing New York's Budget And Tax Issues

by: robert.harding

Wed Nov 19, 2008 at 09:25:13 AM EST

The same can be said for today, as Robinia documented earlier. The constant all fight and no action behavior in Albany is getting us nowhere.

The budget crisis we have in New York is a serious problem. We also have a serious issue with property taxes that has led to more divisiveness and less action. So what do we need to do? What do we do to address these issues? Here are some ideas based on "To Cut, To Cap or To Tax?"

WHAT TO CUT: TAXES. Cutting spending like Governor Paterson wants to cut spending won't solve any problems. In fact, it will just create more problems for us that we would have to address sooner rather than later. But cutting taxes would help, especially if those tax cuts target the middle-class like they should. That will help boost New York's economy. A tax cap is not an answer. A tax cap looks like a great solution, but it really won't do anything except tell municipalities how far they can raise taxes. That's all the tax cap will do. So cutting property taxes is a must. Implementing a circuit breaker in New York will help, but we also need to look at a complete makeover of how we tax our citizens here in New York.

WHAT TO CAP: SPENDING. Cutting spending will only create more problems. So why not meet at the middle? Instead of annual hikes in spending or drastic cuts, how about a spending cap? This is where capping can make a difference. With the renovated tax system we hope to create, we need to implement a much better system for spending New York's taxpayer dollars. Instead of looking to us - the taxpayer - for money, the government should treat their finances like any family. They need to think long and hard about how much they are bringing in and, in turn, how much they should be spending.

WHO TO TAX: MILLIONAIRES. The facts about a millionaires tax are known. A millionaires tax can work and will produce precious revenues here in New York. In this economic climate, millionaires are the ones that can afford it. A millionaires tax has been tried in other states with great success. In other states, more jobs have been created and the number of wealthy people has actually increased. Not only that, but more revenues have been created. New York needs more revenue, but not at the expense of middle-class taxpayers who need a reprieve from high taxation.

This is what the New York State Legislature and Governor Paterson should be addressing. Taxes in New York are out of control and lead to young people and hardworking New Yorkers leaving the state in favor of a better economic environment. Drastic spending cuts will create more problems but if we continue to raise spending levels every year, it will also create problems for us. That is where a spending cap can be beneficial. And making millionaires pay their fair share only makes sense.

Maybe January will be a different story. These "leaders meetings" are relatively useless, but it also showed why New Yorkers voted for a Democratic state senate earlier this month. It was and is time for change. Let's hope they mean it come January.

Thought for the Day from Hunger Action Network of NYS

by: robinia

Mon Sep 29, 2008 at 12:44:50 PM EDT

This from a recent Hunger Action Network of NYS membership rally-- also works for an "Earth to Paulson and Congress" message.

A Deal In The Works To Cut State Spending

by: robert.harding

Tue Aug 19, 2008 at 13:09:55 PM EDT

One Senate source said talks are focusing on 6 percent across-the-board cuts, which would put them in the neighborhood of $400 million to $500 million (this figure is still fluid, and would include $40 million Gov. David Paterson can cut himself).

   "We think it's a safe number," one senator said. "If things get worse, we can always come back and cut more."

It's unclear where exactly the money would be coming from. There's still concern about higher ed cuts, specifically there's a worry among upstate lawmakers that SUNY is taking a bigger hit than CUNY.

Liz also has more from Senate Majority Leader Dean Skelos who ruled one thing out:

The only thing that is out for sure, according to Skelos: Tax increases.

   "We're not going to do any taxes," the majority leader said. "This is about controlling government spending, not increasing taxes in New York State and making it less competitive, quite honestly than it is right now."

Skelos expressed confidence that a final deal would be reached by the end of the day that would result in enough savings to shave $1 billion off next year's budget deficit. (In other words, $1 billion worth of spending cuts over two years).

Whether or not this would mean that a millionaires tax is out of the question remains to be scene. The problem is that you can make spending cuts across the board, but you also have to find more revenue sources so that the state can make money. A millionaires tax would be one of those things. You need to show restraint while also looking for new ways to make money (and save money).  

Assembly, Senate Republicans Propose Cutting State Gas Tax

by: robert.harding

Wed Apr 30, 2008 at 17:24:55 PM EDT

While the Republicans support this, the Democrats oppose it.

But the Assembly's Democratic majority notes suppliers could simply raise prices, negating the savings.

Dan Weiller, spokesman for Assembly Speaker Sheldon Silver, says record-high gas prices are the fault of the Republican Bush administration and a federal remedy is needed.

There are a few problems with this. When discussing the budget, cutting out the gas tax would mean a $500 million loss in revenues that are brought in by such a tax. The budget process wasn't too long ago and if there is anything we learned it is that revenue sources are precious.

Also, when you combine the state and federal gas taxes, we are talking about 60 to 65 cents of the total price of gas per gallon. The average gas prices in New York are around $3.75. Even with that deduction, gas would stand at over $3.00 per gallon.

We need to address the real problems here. As I said in the midday open thread, when oil companies are reporting profits to the level that Shell ($7.8 billion in the first quarter of 2008) and BP ($6.6 billion in the first quarter of 2008) are, I have problems with that. The people proposing slashing the gas tax in New York or nationwide are living in a dream world and ignoring the real problem. We need a long-term solution, not another silver bullet solution.  

Paterson Implements Hiring Freeze

by: robert.harding

Thu Apr 24, 2008 at 11:05:55 AM EDT

From the Binghamton Press and Sun Bulletin:

Paterson wants to cut the state budget for fiscal year 2009-10 by 5 to 10 percent. The Legislature rejected $500 million of his proposed $800 million in spending cuts this year -- and adopted a budget with a 4.5 percent spending increase.

The state Legislature has long catered to the state unions, as Paterson well knows. As minority leader in the state Senate, he had a central staff of 143 people. The minority leader in the U.S. Senate gets by with a central staff of 28.

The majority parties get most of the spoils in Albany, of course, so the Republican majority in the state Senate has a central staff of 530. The breakdowns are similar in the Assembly, where the Democrats rule. In California, by comparison, the combined central staff is about 100.

So Paterson knows a lot of state work force trimming can be accomplished without even approaching front-line workers, and he instructed each agency to prepare a detailed savings plan by May 16. "The reductions you propose must be achievable, recurring and serious," Paterson's memo stated. "Your plan must reflect the creativity needed to provide the services the public expects at a lower cost."

Lots of memos like that have appeared in the private sector in recent years, and there's no reason the public agencies should be exempt from belt-tightening.

The hope is that Gov. Paterson will have more success and show more resolve than Gov. George E. Pataki, who announced a "strict" hiring freeze in the wake of 9/11 to help close a budget deficit -- and then added 62 people to his own executive team over the next year. The state work force also grew by 16,000 in that span thanks to thousands of waivers and exemptions granted to fill "critical jobs," including stagehands, marketers, and what the Albany Times-Union called "a vague category of 'project assistants' earning more than $100,000 a year."

Paterson has the right idea. The state agencies should follow his directive and the state Legislature should follow his good example.

This is a good move for a number of reasons. This is necessary. If you don't do it now, there will come a time when you need a wage freeze. Get your fiscal house in order and see where you stand in a year, two years or five years.

The governor is showing that he is willing to make the tough decisions in favor of taxpayers and the hardworking New Yorkers who are struggling to get by. This is just one example. Announcing a hiring freeze will surely draw opposition, but it should be embraced.

(H/T to Liz)

Spending $42 Million To Tell You We Are Stimulating The Economy

by: robert.harding

Sat Mar 08, 2008 at 17:42:33 PM EST

Below is the letter.

Now, the good news. To mail these letters to these recipients (or possible recipients) it cost the federal government $41.8 million.

What a waste of money. Sen. Chuck Schumer (D-NY) thinks so too.

"There are countless better uses for $42 million than a self-congratulatory mailer that gives the president a pat on the back for an idea that wasn't even his," Sen. Charles Schumer said Friday, arguing the IRS could more effectively spend the money to catch tax cheats.

I agree. These letters are a waste. A big waste.

State Seeks Increase In Cigarette Tax, Taxes For Rich

by: robert.harding

Thu Mar 06, 2008 at 11:19:22 AM EST

The State Legislature's top Republican opened the door Wednesday to a $1.50 per pack increase in the state's cigarette excise tax, a move a coalition of health groups said would boost prices enough to reduce the number of smokers in the state by 168,000 people.

In the Assembly, officials floated a plan to raise taxes on rich New Yorkers - an idea quickly rejected by Gov. Eliot L. Spitzer and Senate Republicans.

With the state facing a $4.6 billion budget deficit in the coming fiscal year and the entire Legislature up for reelection this fall, officials are scrambling to find new ways to raise revenues to pay for popular programs, such as education and health care. Doubling the tobacco tax would impose $30 of state taxes on every carton of cigarettes.

"I'm going to review that and very diligently," Senate Majority Leader Joseph L. Bruno, R-Brunswick, said Wednesday of calls by health groups. He has backed previous tobacco tax increases.

Bruno's willingness to consider the options is significant because he has said no to every other suggestion for higher taxes this year, including a plan Assembly Democrats put forth Wednesday to impose a surcharge on income taxes on wealthy people.

The Assembly plan calls for raising the marginal tax rate on New Yorkers making more than $1 million a year to 7.7 percent from 6.85 percent - bringing in $1.5 billion a year over five years. Spitzer called the idea "a mistake."

Sorry, Governor Spitzer that is not a mistake. This is actually a great idea. If that can bring in $1.5 billion over five years, we could benefit from this. I think we should verify first that we can bring in that amount but overall, the idea is strong.

The cigarette tax idea is one that is strong too. Bruno is finally coming around and might be agreeable to it. Phillip Morris thinks this will lead to more people buying tax free cigarettes, which could be true but not every consumer of cigarettes get their pack of "cancer sticks" from tax free locations (i.e. Indian reservations).

UPDATE: The New York Times has more on this story.

If you earn a million dollars in New York this year, beware. Albany has its eyes on your money.

As Democratic Assembly members try to figure out how to right the state's finances, they are looking to the state's fabulously wealthy - the hedge fund managers, real estate moguls and superstar shortstops - to balance the budget.

Beware? Beware of what? They make a million dollars or more! We aren't talking about middle class or working class people here. We're talking about millionaires. I think they have the cash laying around to pay more in taxes.  

Sorting out the Upstate-Downstate income/spending question

by: simonstl

Mon Feb 25, 2008 at 17:30:08 PM EST

Back in the 1990s, Senator Daniel Patrick Moynihan spent a lot of time talking about how New York State puts more money into the federal government than it gets back. He made sure there was data to support the claim.

Right now, people on both sides of the aisle and all ends of the state offer varying answers to the question of whether Upstate pays in more and gets less back or New York City pays in more and then it all gets wasted elsewhere and on and on, around and around.

The Republicans in particular seem to be leaping on the "Downstate wastes your money" theme right now, and it's not easy to answer without real data.

I'd really like to have a definitive answer, updated annually. I suspect that the prospect of one would scare a lot of people who'd rather hand out money on grounds other than regional equity, good or bad.

I'm guessing this doesn't exist, but does anyone know of a county-by-county chart of New York State expenditures and income?

Project Sunlight has some great things around member items, but it doesn't show (so far as I can tell) totals of state expenditures.

On the income side, it seems like most taxes at least could be categorized by county - income taxes, sales taxes, etc.

On the expenditure side, of course, there are lots of things that don't neatly fall into county boundaries, like many things the DEC does, but I'd like to at least find something that tries.

There are also huge piles of authorities to think about, but that's another question worth pursuing separately.

New York starts closing Empire Zone loopholes

by: robert.harding

Sun Feb 17, 2008 at 10:49:49 AM EST

But in today's newspaper, the Post-Standard has an article on New York starting to close Empire Zone loopholes. This has been something Darrel Aubertine is mentioning on the campaign trail in New York's 48th Senate District. Republican Will Barclay has voted against closing such loopholes.

Some details on the state closing these loopholes:

Recently, the state's tax department denied $1.7 million in Empire Zone tax credits to five businesses for 2005. That crackdown for the first time targeted so-called shirt-changers, companies that changed their names to qualify for tax breaks intended for true start-ups.

Because businesses can claim the tax breaks for up to 13 years, the audits will eventually save New York a projected $17 million, said Tom Bergin, tax department spokesman.

The tax department is auditing the returns of 19 more businesses that may have received big Empire Zone tax breaks by simply changing their corporate names, and it plans to audit 150, Bergin said. Meanwhile, this month Empire State Development Corp., which runs the program, notified 180 businesses -- including 39 in five counties surrounding Syracuse -- that the state may kick them out of the program.

"Unfortunately, some of these businesses have been taking advantage of a system that needs to be fixed," agency co-chairman Patrick Foye testified Monday in Albany at a state budget hearing.

The 180 businesses missed by at least 60 percent the job creation or investment projections they made to qualify for the program. Those businesses, which the agency would not identify, were given 10 days to explain to the state why they should not be expelled, said A.J. Carter, an Empire State Development Corp. spokesman.

All good moves, I must say. The Empire Zone program has lost its way. It needs either a complete overhaul or it needs to be shut down. It has not lived up to its intended purpose and several companies have taken advantage of the Empire Zone benefits when they shouldn't be.  

Three dark clouds in today's Times

by: simonstl

Mon Oct 22, 2007 at 12:14:01 PM EDT

The New York Times metro section has three stories that (for once) promise to affect the entire state. They're not upbeat stories, though:

• The level of the Great Lakes is falling. I'd seen earlier reports of problems on Huron and Superior, but less water there means less water here eventually. They focus on the impact on cargo shipping, but those lakes have a dramatic effect on weather conditions and water levels across the state.

• It looks like Albany won't be seeing pleasant surprises in tax revenue, as Wall Street bonuses look like they're going away. That could have a direct effect on New York City, but the financial reverberations would affect the whole state.

• This one's a little older, but I just noticed it on the site: a map of subprime lending in New York (including upstate), New Jersey, and Connecticut. New Yorkers may be facing some problems, concentrated (in the zoomed-in version) in our cities.

These don't sound like pleasant changes to come. Hopefully some of them will just blow by, but we'll probably see some problems along the way.

When Infrastructure Attacks! (a special you won't see on Fox)

by: ElanaDMIBlog

Thu Jul 19, 2007 at 18:48:27 PM EDT

As you've all heard the explosion wasn't caused by terrorism, it was an underground steam pipe constructed in 1924 that had too much cold rain water leaking on it, causing it to explode like Old Faithful-- except flinging more mud and some asbestos into the air. I know that the air has been declared clean but the dust and debris spat out from the explosion do contain asbestos and what with air movement and you know, gravity, I can image that the carcinogenic dust will get air-born and be inhaled endlessly till it's cleaned up.  Remember when the EPA told the public that the air around Ground Zero was safe to breath - when it actually wasn't? You'll have to excuse me for being a bit concerned over whether the same thing will happen here.

I should probably explain this blog post's title. When chasms in the earth open up near Grand Central the media tends to report it. Even Fox. But what you won't see in the media by and large is a discussion of  why it is that these accidents take place. Sure they'll explain how the explosion was caused by water hitting an antediluvian steam pipe but they just won't make the connection between the lack of investment in our country's infrastructure and things going kablooie. You see it takes money to keep any locality running. And localities get that money through our taxes.

More attacking infrastructure on the flip...

From Bruno to Brodsky-the continuum from persistent fantasy to dull, dismal reality-which for NY?

by: robinia

Wed May 16, 2007 at 12:03:14 PM EDT