Federal Tax-Code Changes Could Force New York to Adopt Lean Spending Plan

November 30, 2017. According to this article, a mounting state deficit and expected changes to the federal tax code are handing lawmakers their toughest choices in the seven years that Gov. Andrew Cuomo has been New York’s leader. The state’s most recent financial plan projects a budget deficit at $4.1 billion, but that gap could grow if tax receipts continue to lag behind the expected pace, according to state Comptroller Tom DiNapoli’s office. Cuomo himself acknowledged the scope of the challenge during a stop Tuesday in Syracuse, telling reporters: “The budget is not going to be an easy budget, and we’re going to have to find additional savings.”

Ron Deutsch, director of the union-backed Fiscal Policy Institute, said higher state taxes on the rich would allow New York to “recapture” some of the tax breaks those affluent New Yorkers would receive from the Republican tax legislation advancing in Washington. Deutsch also said his group favors easing up on the approximately $9 billion that state and local governments are spending to support economic-development awards that have benefited private industry.

Cuomo has argued that the statewide tax-levy cap, enacted six years ago, has helped to keep state spending under control. But the expected changes in federal tax policy could create pressure for scrapping the cap, at least temporarily, Deutsch maintained.

 

Access to Full Article HERE

 

Tax Bill, Deficit Could Jumble N.Y. Budget

November 29, 2017. According to this article, a mounting state deficit and expected changes to the federal tax code are handing lawmakers their toughest choices in the seven years that Gov. Andrew Cuomo has been New York’s leader. The state’s most recent financial plan projects a budget deficit at $4.1 billion, but that gap could grow if tax receipts continue to lag behind the expected pace, according to state Comptroller Tom DiNapoli’s office. Cuomo himself acknowledged the scope of the challenge during a stop Tuesday in Syracuse, telling reporters: “The budget is not going to be an easy budget, and we’re going to have to find additional savings.”

Ron Deutsch, director of the union-backed Fiscal Policy Institute, said higher state taxes on the rich would allow New York to “recapture” some of the tax breaks those affluent New Yorkers would receive from the Republican tax legislation advancing in Washington. Deutsch also said his group favors easing up on the approximately $9 billion that state and local governments are spending to support economic-development awards that have benefited private industry.

 

Access to Full Article HERE

 

 

Senate Tax Plan Incenses Anti-Poverty Advocates

November 28, 2017. According to this article, the Congressional Budget Office report, released Sunday, finds that the Senate tax overhaul bill harms the poorest Americans even more than originally thought. That’s partly because of the provision to eliminate the federal insurance mandate, which the CBO said would lead to as many as 13 million Americans becoming uninsured and losing federal subsidies to help them buy insurance.

Ron Deutsch, with the liberal leaning think tank Fiscal Policy Institute, also believes that the poor won’t fare well under the federal tax overhaul plan. He said the U.S. needs a tax overhaul that is the exact opposite of the current proposals.

“What we really need is a bottom-up tax package, providing cuts to the people at the lowest end of the socioeconomic ladder,” Deutsch said. “Because they’re going to spend the money that they get.”

He said that would help stimulate the economy and potentially even create new jobs. Deutsch said wealthier people can afford to hang on to any savings from tax changes, so their gains would not necessarily benefit the entire economy.

 

Access Full Article HERE

PolitiFact: Cost estimates of ending worker program vary widely

November 25, 2017. This Politifact article is assessing the claim by U.S. Rep. Joaquin Castro. He tweeted that the United States would lose $164 billion in GDP over a decade if they terminated Temporary Protective Status (TPS). TPS is a status for immigrants from countries experiencing armed conflict, natural disasters, epidemics and other temporary conditions preventing the safe return of their citizens. This status provides immigrants with TPS work authorization and protection from deportation, but does not include a pathway to citizenship. The Trump administration ended the TPS status of Nicaragua and Honduras’s status is still under consideration. This article includes statements that argue that the termination of TPS would effect certain industries in the workforce negatively. Politifact determined that Rep. Joaquin Castro cited the loss of GDP accurately.

U.S. Rep. Joaquin Castro, D-San Antonio, claimed the U.S. economy would be negatively impacted if the Trump administration eliminated an immigration protection mostly benefiting Central Americans.

David Dyssegaard Kallick, immigration research director at the Fiscal Policy Institute, said it is sound to look at industry output when thinking about GDP loss.

“GDP, after all, is about measuring total output in the economy,” he said.

Our ruling:

Castro tweeted, “Ending #TPS and deporting legal workers would cost the United States ~$164 billion in GDP over a decade.”

Castro accurately cited GDP loss reported by the left-leaning Center for American Progress. But at least one other report pegged a GDP loss that’s more than three times smaller, $45.2 billion. The report Castro used had calculated lost earnings and impact on industries, while the other report only looked at lost wages.

Here is the link to Politifact.

 

Pros, Cons of Voting for a Constitutional Convention

November 2, 2017. On Election Day, New York’s voters will have their first opportunity in 20 years to call for a state constitutional convention via ballot proposition. Nearly 100 Capital District voters packed the auditorium at the Guilderland Public Library last Tuesday night for a panel discussion titled “Would New York State Benefit from a Constitutional Convention?” The event, co-presented by the League of Women Voters of Albany County and the Women’s Press Club of New York State, was moderated by Susan Arbetter, host of WCNY’s “The Capitol Pressroom,” a syndicated public radio program about state politics.

Ronald Deutsch, executive director of the Latham-based Fiscal Policy Institute, an independent, nonpartisan, nonprofit research and education organization committed to improving public policies and private practices to better the economic and social conditions of all New Yorkers, is equally dissatisfied with the status quo. However, he views this ballot proposition as a means of opening up the state constitution as a whole to extensive scrutiny by extremists on both sides of the political spectrum. While he says good things could result from the people calling for a convention, he’s frightened about the “really bad things [that] could happen,” citing the conservative climate now prevalent in politics at both the state and national levels which has the potential to revert or even repeal existing protections, such as the Forever Wild provision.

Access full article HERE

David Dyssegaard Kallick Participates in the “On Immigration” Panel Discussion

November 20, 2017. On November 1, 2017, FPI’s Deputy Director and Director of the Immigration Research Initiative, David Dyssegaard Kallick, joined other experts in a panel discussion, “The Business of Immigration,” hosted by City & State New York. He joined the moderator Stuart Schulman, Professor of Management at Baruch College Zicklin School of Business, Lorelei Salas, Commissioner for the Department of Consumer Affairs, Hollis V. Pfitsch, Deputy Commissioner at the Law Enforcement Bureau, and Dara Adams, Industry Program Director at FWD.us. The panelists discussed the role that immigrants play in New York City’s economy through small business ownership.

 

Watch NYC Comptroller Scott Stringer’s keynote address

View the event photos

Read City & State’s event coverage

Activists, Immigration Officials Push for DACA Legislation

November 16, 2017. This article discusses the termination of Deferred Action for Childhood Arrivals (DACA) by the Trump administration, which effects over 40,000 young individuals. The administration announced that October 5, 2017 would be the cutoff deadline for renewal applications and that new applications would no longer be accepted. Under DACA, young individuals had work authorization and protection from deportation. On November 1, there was a forum discussion hosted by City & State New York at the Museum of Jewish Heritage, that FPI’s director of immigration research, David Dyssegaard Kallick, was included in. The forum discussed the challenges that Dreamers faced with the short deadline, including financial difficulties raising money for the fees in such a short time. The participants discussed the contributions of immigrants and Dreamers to the economy such as revenue from taxes and business ownership, as well as the push for a solution that includes a pathway to citizenship.

The current solutions offered for Dreamers affected by the soon to be dropped the program are short-term. Lawmakers are racing to enact legislation that includes a path to citizenship before the March 5 deadline, when Dreamers will lose work permits and become susceptible to deportation.

David Dyssegaard Kallick, a senior fellow at the Fiscal Policy Institute and author of numerous studies on the economic effects of immigration, emphasized the importance of immigrant business owners in city neighborhoods.

Outside of the sheer numbers—48 percent of business owners in the city are first-generation immigrants and 46 percent of the workforce is made up of immigrants—immigrants are twice as likely to own a Main Street business. He said these businesses are the kind that revitalize neighborhoods: “the grocery stores, the retail shops, the dry cleaners—the things that make a neighborhood feel like it has some character.”

Here is the link to the Times Ledger.

Teachers Union, Progressive Groups Fight GOP Tax Plan

November 16, 2017. Progressive advocates and lawmakers are ramping up efforts to block a Republican tax bill that would end SALT deductions and give cuts to wealthy Americans. A new ad released this week by the group Not One Penny is putting the pressure on GOP members of Congress who have yet to take a firm stand on the bill. The state teacher’s union has signed on to this campaign and with us in studio to talk more about this is NYSUT Political Action Coordinator Melissa Servant and, joining us from DC is Ron Deutsch, Executive Director of the Fiscal Policy Institute.

 

Access to Video HERE

Rep. Joaquin Castro Claims TPS End Will Lead To $164B GDP Loss Over A Decade

November 14, 2017. On November 6, 2017, the Trump Administration announced that they were not extending the Temporary Protective Status of individuals from Nicaragua, and that the status for Honduras is currently under consideration. Temporary Protected Status (TPS) is a status given to individuals from countries experiencing armed conflict, natural disasters, epidemics and other temporary conditions that prevents the safe return of their citizens. This status provides work authorization and protection from deportation to individuals. Rep Joaquin Castro claimed in a tweet that the United States would lose $164 billion in GDP, which was obtained from a Center for American Progress report. This article goes on to discuss that those with TPS not only generate GDP but purchase homes and are significant contributors to many industries such as construction, childcare and landscaping. Politifact determined that Rep. Joaquin Castro accurately cited information in his claim and rated it “half true.”

Democratic Congressman Joaquin Castro claimed the U.S. economy would be negatively impacted if the Trump administration eliminated an immigration protection mostly benefitting Central Americans.

“Ending #TPS and deporting legal workers would cost the United States ~$164 billion in GDP over a decade,” Castro tweeted on Nov. 1, ahead of the deadline for the U.S. government to decide on the current TPS status for Honduras and Nicaragua.

Several researchers we reached out to said they had not done their own, independent analysis on this issue, but did not challenge Center for American Progress’ findings.

David Dyssegaard Kallick, director of immigration research at the Fiscal Policy Institute, said it is sound to look at industry output when thinking about GDP loss.

“GDP, after all, is about measuring total output in the economy,” he said.

Here is the link to Politifact.

Commentary: State Should Do More For Immigrants

November 13, 2017. In this op-ed by Karthick Ramakrishnan, he argues that New York is behind California, Connecticut, Illinois, and Washington, in regards to immigration policies that protect immigrants and help economic growth. He goes on to argue that Governor Cuomo, who is seeking his third term, has a weak immigration record and if he plans to run in the 2020 presidential election, he needs to change that in order to win votes. Ramakrishnan argues that Governor Cuomo could enact many of the proposed policies that the New York Immigration Coalition has outlined in their blueprint for New York State, such as driver’s licenses for undocumented immigrants, to not only protect immigrants but help the economy flourish.

In the past two decades, however, New York has slipped considerably behind peers like California, Illinois, and Washington when it comes to policies that protect immigrants and advance the state’s economic interests. If Cuomo is to be seen as a national leader, he must step up and champion policies that protect immigrants and their contributions to the state’s economy and American society.

These immigrant-friendly policies proposed by the New York Immigrant Coalition would bolster the state’s economy, which is especially significant in the context of a federal administration committed to cutting state funds for a variety of social services. For example, the Fiscal Policy Institute estimates that driver’s license legislation alone would result in $57 million in annual government revenues, plus $26 million in one-time revenues.

Here is the link to The Times Union.

%d bloggers like this: