Assembly Protects Health Care Funding, Schools in Budget Negotiations
August 22, 2008
As the nation’s economic picture worsens, New York has been faced with tough choices about how to keep our fiscal house in order. Earlier this week, the legislature went into special session to find ways to reduce public spending. After difficult negotiations, the Assembly passed a bill that would limit spending by more than $1 billion over the next year and half – reducing this year’s budget by $411 million and next year’s by $600 million. On Wednesday, the revised budget was finalized and signed by the Governor.
I am proud of the tough stance the Assembly took on property taxes. The “circuit breaker” approach what we passed represents real and immediate tax relief to working- and middle-class renters and homeowners, without damaging the fiscal stability of our schools. Maintaining funds for our schools, and holding the State to the task of living up to the principles of the Campaign for Fiscal Equity court decision were major priorities for me personally, and I was proud to work with my colleagues in holding to those principles during such a difficult time.
What’s a ‘circuit breaker’? A lot of people have been asking me that question especially since I was quoted in a New York Sun article on Tuesday, saying that I support that bill (A.11838) instead of a property tax cap. The video (put out by the New York State United Teachers - NYSUT) above gives a very short answer. The union, which represents New York State teachers, has a more complete FAQ on their website.
The Assembly fought hard to ensure that the revised budget avoided deeper cuts to core health care services, like Medicaid. But there is much about the cuts that were approved, like the reductions in premiums paid to insurers (and so ultimately to doctors), that concerns me greatly. I am also disappointed by the reduction of aid to the City University of New York (CUNY). And I was dismayed that funds for accessible polling stations were chopped.
The Governor issued this press release which gives an accounting of the cuts, which are largely across-the-board 6% spending reductions, with some important excceptions. Also, here is a link to a video of the press conference held by Governor Paterson, Assembly Speaker Silver, and other leaders of the Legislature after the budget was finalized.
Take Back Our Economy: Closing a Tax Loophole on Big Business
July 22, 2008
On July 17, over one thousand union members gathered in Manhattan, joining more than a dozen coordinated events worldwide, for a “Take Back the Economy” protest calling attention to preferential tax treatments for corporations and the mishandling and questionable ethics related to the investment of employee pension funds by private equity firms. The rally was organized by SEIU 1199, SEIU 32B-J, and the Working Families Party.
Over the last 30 years, our state’s tax code has been more and more tilted against middle-class New Yorkers and in favor of big corporations and the very wealthy. While the well-off exploit tax loopholes and benefit from low rates, working New Yorkers are forced to pay more through rising property taxes, sales taxes and user fees that many don’t consider taxes (but should), such as rising subway and bus fares.
With the economic problems our country is facing, tax cuts for the rich and for certain big businesses leave us with ever-growing budget gaps - billions of dollars’ worth - in necessary areas like school funding, health, and public transportation infrastructure.
Something has to give.
One of the ways that I am working to address this is through a bill that I introduced last month with the support of the Working Families Party. My bill would close a tax loophole that allows managers in private equity and hedge funds to avoid paying millions of dollars in taxes resulting from “carried interest.” The loophole unfairly allows these major financial engines to avoid taxes that small businesses have to pay under the Unincorporated Business tax laws of New York.
The Fiscal Policy Institute issued a report on April 15th that found that closing this loophole would generate between $165-225 million every year in revenue for New York City. The Executive Director of the Working Families Party, Dan Cantor, wrote an excellent piece for the Gotham Gazette that explains how the tax loophole works and how it is costing City taxpayers money (“Where The City Can Find $200 Million”). It is wrong that these multi-million dollar companies continue to get away with avoiding paying the same taxes as small businesses, especially when middle-class New Yorkers are struggling in a bad economy.
Another MTA Fare Hike: It Doesn’t Have to be Déjà Vu (all over again)
July 22, 2008
Just last year, I stood on the steps of City Hall with Gene Russianoff of NYPIRG’s Straphangers Campaign to protest an MTA fare hike. Now it’s happening all over again.
It came as no surprise to me when a MTA official leaked to the New York Times that once again the MTA is facing widening budget deficits. New York State has all but abandoned its fiscal responsibility to the MTA for the last decade and a half, leaving the Transit Authority’s fiscal health up to the volatility of real estate taxes, while forcing the MTA to balance shortfalls on the backs of middle and low-income straphangers through repeated fare hikes. The MTA is once again looking at another fare and toll hike, which would be only the second time in the 100 year history of the subway that fares are raised in back-to-back years.
While the MTA’s budget deficits look grim, and a fare hike seems unavoidable, it is only because New York State refuses to unshackle itself from one of the most regressive income tax structures in the country. What most New Yorkers don’t even realize is that if they make $45,000 a year they are in the same income tax bracket as New York’s elite millionaires and billionaires.
Last March the Assembly Democratic Caucus announced a plan to raise $1.5 billion in revenue for transportation through a less than 1% income tax surcharge on those New Yorkers earning over a million dollars. While Governor Paterson and the State Senate did not embrace this plan at the time, I believe the current state of the MTA’s finances demand that the Governor take a second look. If Governor Paterson has the foresight to call the legislature back to Albany to pass some form of the millionaire’s tax he would break the cycle of balancing the MTA’s budget on the backs of straphangers who can least afford to pay.
But an income tax surcharge on those earning over a million dollars is only a short term solution. If Governor Paterson has the vision and the fortitude he should champion a more progressive income tax structure as the centerpiece of his 2009 legislative agenda, such as the Working Families Party has put forward, we should go far beyond just plugging the MTA’s budget gaps and instead reinvigorate our State’s fiscal health, while giving millions of middle- and low- income New Yorkers tremendous tax savings.
