Taxing Gym Memberships is NOT Good Public Policy
February 25, 2009
In these tough economic times we are all trying to tighten spending and increase revenue, including New York State, as we negotiate this difficult budget. Everyone agrees that sacrifices need to be made across the board and these sacrifices are glaringly evident in Governor Paterson’s 2009-10 Executive Budget. While I understand the need to create revenue, I don’t agree that one of the answers to this problem is to impose a new tax on health club memberships and services.
At the same time that the Governor proposes this tax he has more famously put forward a new tax on sugared drinks, purportedly to fight against obesity. For several months, I have been flooded with letters from constituents who are confused about this contradiction and I agree with them.
We can’t on one hand penalize people for drinking too many empty calories in a soda and on the other penalize them for trying to be healthier on the tread mill at their local sports club. It doesn’t make any sense. As the budget negotiations in Albany continue I will fight for a budget which takes our current economic troubles into account while at the same time ensuring that New Yorkers are not unfairly burdened.
I have written Governor Paterson to let him know of my opposition to the tax on gym memberships. That letter can be found in the Publications section of my website.
Money in Your Pocket: The Earned Income Tax Credit
January 28, 2009
January 30th has been proclaimed Earned Income Tax Credit Awareness Day by the U.S. Treasury Department. The EITC is a refundable credit for working people who do not earn large incomes that helps many families struggling to make ends meet. Unfortunately, millions of Americans are not aware of this credit and fail to claim it on their taxes. The EITC is available only for your federal income taxes, but New York State and the City of New York also offer similar credits for local returns. The IRS has a factsheet on their website for more information.
In the midst of this recession, every extra dollar makes a big difference. Those who make the lowest incomes are not required to file their taxes - so often they don’t and miss out on the credit. And this year, more than ever, it’s important to get the word out because increasing unemployment means that there are many families who may have never before qualified and might not know that they are eligible.
Taxpayers generally qualify if they have earnings of or below $38,646 ($41,646 if married filing jointly) for families with two or more children; $33,995 ($36,995 if married filing jointly) for families with one child; and $12,880 ($15,880 if married filing jointly) if there are no children.
Free help is available to determine eligibility, to file your taxes, and claim the credit. There are IRS-certified volunteer tax assistance locations throughout New York City. I have prepared a flyer (it is in the Publications section of my website) that details where New York City residents can go for this free assistance. You can also call 311 to get the nearest address of a free tax preparation site where you live.
The Executive Budget: Beginning the Conversation About Shared Sacrifice
December 19, 2008
Governor David Paterson presents the 2009-10 Executive Budget to the NYS Legislature.
As we all expected, the Executive Budget is the result of a painful reality of our difficult economic situation. It demonstrates what we have known for months: balancing the budget will require shared sacrifice.
I am very aware of the obligation that I share with my colleagues to ensure that necessary cuts and tax increases are done in such a way to ensures that higher education remains affordable, the commitment to funding our schools is maintained, quality health care is available to every New Yorker, and that mass transit is adequately funded.
There are many cuts that I am uncomfortable with as I am sure the Governor is. As an example, Senator Tom Duane and I wrote to Governor Paterson in November to ask that the relatively small amount of funding allocated for the Bridges to Health program be maintained, only to discover today that its funds have been frozen and its full implementation delayed for many years. This is a program to provide services to medically fragile, severely traumatized, and chronically disabled children in the foster care system. I will continue to advocate for its funding.
Despite this, I respect that the Governor made tough choices from a poor set of available options and I did not envy his task. Over 50% of our state’s spending is designated to healthcare and education, so it is impossible to avoid cuts in these areas when balancing our budget. I also know that our budget can’t be balanced on cuts, nor would I want it to be. You have probably heard that the Governor has proposed a new range of taxes and fees, some of which have gotten more attention than others (like the ’sweet tax’ proposed tax on non-diet soda drinks which Governor Paterson recently defended in an editorial posted on CNN.com).
Two of these fee increases concerned drivers; the first is a 25% increase on car registration fees and the second is a 25% increase in driver license fees. I wrote to the Governor in November to suggest these fee increases (see my blog post on this topic, Increasing Driver License, Car Registration Fees Could Raise $550 Million for Cash-Starved MTA), and I am happy to see them included in the budget. But I am disappointed that these fees are not designated for mass transit funding as I suggested, but rather to plug holes in the general operating budget. It is important to me to ensure that even as we repair the massive shortfalls in the 2009 budget we plan for mass transit funding for the future. Designating funding for mass transit from drivers’ fees can achieve both.
We are in the midst of an unprecedented global financial crisis that threatens our economic security. People are losing their jobs and their homes. Pensions are losing their value and families are making horrible choices about necessities. I have no doubt that we will pass a budget that contains significant cuts in spending and increases in fees and taxes. And I will continue to demand that this sacrifice is shared and not shouldered by the most vulnerable New Yorkers. Continuing to advocate for more progressive tax structures is one way that I will work to achieve this.
It is very important to me to hear what you think about the Executive Budget. It is by no means a final version of what we will pass in 2009. The Governor himself emphasized yesterday that it is a starting point for dialogue. The PDF of the Governor’s presentation can be found on his 2009-10 Executive Budget website.
Supporting Film Production, Post-Production Industry in NYC
September 17, 2008
Bobby Cannavale, an Emmy-award winning actor of ‘Will and Grace’ fame, talks about the importance of the production and post-production film and television industries. Also pictured are myself at left, Assembly Member Jonathan Bing (center), and Councilmember David Yassky (right). Photo by William Alatriste.
I may be the only New York elected official with my own Internet Movie Database (IMDb) profile. I was proud to work in college on a 2000 film called Five Feet High and Rising, which was later turned into a feature film launching the career of the movie’s director, my friend Peter Sollett. I was so proud when New York’s production tax credit helped enable Peter to film the anticipated October release, Nick and Norah’s Infinite Playlist in New York City. Film production located in New York City is tremendously important for our economy — but it is clear that we can and should be doing more to encourage production and post-production work.
Yesterday, I joined Councilmember David Yassky and my State legislative colleagues Assembly Members Jonathan Bing and Michael Gianaris and State Senator Martin Golden to call on the New York City Council to pass two bills introduced by Councilmember Yassky; one would expand the City’s film production tax credit and the other would create a new credit for post-production work. Our effort was reported on in today’s New York Sun.
Tax credits for the film and television industry are proven to bring jobs and help the local economy. Since New York State tripled its film production tax credit, heavy employment shooting days are up 84%. This means that more union actors have jobs. Screen Actors Guild officials say that a significant number of previously uninsured actors are now in union-sponsored healthcare programs because of the availability of these jobs in New York. According to the Mayor’s Office, the initial 5% tax credit that Councilmember Yassky achieved with his 2005 legislation has generated $600 million and over 6,000 new jobs for the City’s economy. His new production credit expansion legislation would triple this.
Equally important is post-production. As a film school graduate, I watched as many of my friends moved to Los Angeles because of a lack of jobs here in New York City. Particularly, in film and television post-production, most people don’t realize that most of the work that goes into making the movies and TV shows we love comes after the camera stops rolling — sound mixing and re-recording, foley artists, adding the track, digital effects, and more. The ripple effect of a post production tax credit encouraging that industry here would be a major boon to our local economy.
Councilmember Yassky’s post-production credit and a state-level credit (A.10689) proposed by Assemblymember Steve Englebright, which I co-sponsor, would stimulate the ripe field of post-production in New York City. New York has three major, state of the art post-production facilities, rivaling what Los Angeles has, but Los Angeles still wins 95% of all post-production jobs.
Joining us at yesterday’s press conference were actor Matt Servitto of The Sopranos, actress and writer Nancy Giles of CBS Sunday Morning and representatives from the Motion Picture Editors Guild, Screen Actors Guild, Writers Guild, Cinematography Guild, American Federation of Musicians, Theatrical Teamsters, IATSE and the Deluxe New York post-production facility.
