More than 100 economists from around the state have signed a letter to
Governor Paterson, urging him to raise high-end income taxes to close the budget
gap, according to the Fiscal Policy Institute. And they say that steep cuts in
spending as proposed by Paterson will weaken the already struggling economy. It
is a view that Princeton University professor Larry Bartels discusses in his
book, "Unequal Democracy; the Political Economy of the New Gilded Age."
The Fiscal Policy Institute, a progressive public-policy group, has
compiled the evidence ... Since 1976, New York State has cut its top
income-tax rate from the previous 15.375 percent down to 6.85 percent. That
means, notes the Institute, that whether your family makes $41,000 a year or
$1 million, your tax rate is the same. "The large multi-year tax cuts enacted
between 1994 and 2005 are now reducing state revenue by over $17 billion per
year," says the Institute.
November 30, 2008.
City residents feel economy's pain. Respondents to a recent poll say the
city's economy is in poor condition and 40% fear for their jobs, while 80% say
they have already cut back on spending this year. By Matthew Sollars, Crain's
New York Business.
It's sink or swim time for New York state. So let’s get our priorities
straight and face the difficult financial situation with a balanced approach
that looks at both the spending and revenue side of the budget equation.
Reckless cuts alone will only pull us deeper into the recession's undertow.
November 17, 2008.
Health care can't absorb more cuts. By James J. Barba,
president and CEO, Albany Medical Center; Steven P. Boyle, president and CEO,
St. Peter's Health Care Services; James W. Connolly, president and CEO, Ellis
Hospital; Gino J. Pazzaglini, President and CEO, Seton Health and James K. Reed,
M.D. president and CEO, Northeast Health. Albany Times Union.
November 17, 2008.
The
Cost of Cuts. An editorial from the Cornell Daily Sun, Ithaca.
"He's doing this entirely from an accounting ledger perspective - he's
not taking the economic impact of his cuts into consideration," said Frank
Mauro, a liberal economist who is executive director of the Fiscal Policy
Institute. Mauro said that Paterson should restrict his actions to the $1.5
billion deficit and use $1.039 billion from the tax stabilization reserve
fund.
Paterson appears to have bought the notion that higher personal-income
taxes cause the rich to flee. This may be the teachings of The
Fountainhead, but there's no real-world evidence for it. Were it so, New
York's wealthy would long ago have escaped to places like Georgia, where
politicians make sure that millionaires pay the same tax rate as day laborers.
As Frank Mauro, the tireless pro-union advocate of the Fiscal Policy Institute
in Albany, points out, the rich have not even fled their estates next door in
New Jersey, which has long taken an extra bite - almost 9 percent - out of the
incomes of those making over $500,000.
What does cause people to move or stay away, says Mauro, is a decline in
public services. "Our fear is that if you try and close a budget gap of the
magnitude that the governor is projecting, you will be inevitably cutting
services that are important to low- and middle-income families," he says. "We
know that expenditure cuts put more drag on the economy than high-end taxes."
October 28, 2008.
NYC city council supports new tax on carry. A majority of the city council
supports a proposal by the Working Families Party, a grassroots political group,
to include carried interest under the city’s 4% unincorporated business tax. By
Christopher Witkowski, Private Equity Real Estate.
October 27, 2008. How Congress spells relief. By Erik Engquist and Mike
Sollars, Crain's New York Business.
Congressional leaders are discussing a stimulus package that could send
$50 billion in relief to state and local governments. "New York could get 10%
of that, depending on how it’s done," says James Parrott of the Fiscal Policy
Institute. "If it’s done through Medicaid, New York would get more."
"The financial crisis puts a dramatic failure of unregulated markets
directly in front of the public," says David Dyssegaard Kallick, senior fellow
at the Fiscal Policy Institute, based in New York. "There could hardly be a
more powerful argument for regulation than the failure of banks that are 'too
big to fail.'"
September 23, 2008.
The Backstory of the Financial Collapse. Call it Gall Street. How else to
describe an industry that applauds nearly $500 million in bonuses for executives
taking an entire economy down with them? By Tom Robbins, Village Voice.
September 22, 2008.The End
of Wall Street as We Know It.
By James Parrott, FPI's deputy director and chief economist, who writes regularly for Gotham
Gazette's Economy
section.
September 17, 2008. The Brian Lehrer Show: What Should Washington Do? FPI's James Parrott and
Nicole Gelinas of the Manhattan Institute discuss how the government should
respond to the latest fiscal crisis. WNYC. (25:31)
September 15, 2008.
New York economy will feel Wall Street's pain. Estimates that 33,000 jobs in
the New York City securities industry will be lost during the current downturn
could be revised upward. By Daniel Massey,
crainsnewyork.com.
September 5, 2008.
Businesses hold back on fuel savings. New York City companies that added
surcharges and hiked prices because of gasoline increases are not in a hurry to
roll them back now that the price of fuel has dropped. By Matthew Sollars,
crainsnewyork.com.
It is more than time for our leaders in government and private industry
to start dealing with the issues affecting our nation's workers. If they are
successful in dealing with this issues, their actions will help put this state
and nation back on a solid economic foundation.
If the sea of about 84,000 spectators at INVESCO Field at Mile High
seemed like a lot to you last night, imagine how many arenas we could fill
with a much less cheery crowd here in New York. About half a million workers
across the state were stuck on the unemployment rolls as of July, according to
a new report by the Fiscal Policy Institute.
...
The trends signal a troubling change, but not a hopeless one, FPI says.
The report urges Albany lawmakers to respond by reforming the state's
unemployment insurance system (which currently doles out about $300 per week
on average), to help families ride out the economic slump while softening the
impact of eroding wages.
... in a week filled with remembrances about a long-ago speech
and promises to come, [Martin Luther King, Jr.] would want to remind the
celebrants of Denver and St. Paul and all our communities that his life's work
concerned not only racial equality, but also economic fairness and opportunity
for all. There is so much more to overcome. The campaign trail should help
inform how we - all of us - do just that.
If New York legislators are interested in heading off a snowballing
problem, they should modernize the state employment insurance system.
A report released today by the Fiscal Policy Institute shows that 25
counties in New York State, including Nassau, Suffolk and Westchester, are
experiencing at least 20 percent increases in the number of unemployed
persons.
Nationally, the top 1 percent of taxpayers in 2006 collected just over a
fifth of all personal income in the United States, 21.1 percent. In ten
states, including New York, the top 1 percent claimed an income share over
that 21.1 percent level.
These ten states also share something else in common. All ten, the
Washington, D.C.-based Institute on Taxation and Economic Policy charged last
week, have tax systems that "generally ignore" the considerable deep-pocket
presence within their borders.
...
"Restoring some of the New York tax system's lost progressivity," Frank
Mauro of the Fiscal Policy Institute, a state research group, noted last week,
"should be part of the state's effort to balance its budget."
New York Governor David Paterson apparently disagrees. Paterson has no
"millionaire's tax" in his package of proposals to cut the state's $6.4
billion budget deficit. The governor seems to buy the line, wildly popular on
Wall Street, that upping tax rates on the rich will lead to a massive
statewide exodus of New York's wealthy.
That's what a former New York governor, George Pataki, claimed back in
2003 when lawmakers voted to place a temporary 7.7 percent tax on income over
$500,000 and a 7.5 percent tax on any income that couples report over
$150,000. Pataki vetoed this tax hike on New York's most affluent, but
lawmakers then enacted the measure over his veto. What happened? Over the next
three years, with the tax hike on the wealthy that Pataki vetoed on the books,
the number of taxpayers in New York making over $200,000 actually increased by
31 percent.
The occasion was the unveiling of the Omnibus Bill that would combine
short-term tax relief and long-term tax reform. It proposes enacting a
"circuit breaker" and, in the long run, shifting costs to the state.
The Omnibus Bill is the brainchild of Frank Mauro, director of the
Fiscal Policy Institute, an Albany-based economic think tank.
"We came up with this vision that sort of embraces the best of a number
of bills out there," he said.
In closing New York’s projected $26 billion budget deficit, we agree
with Governor David Paterson when he says that raising taxes should be the
last resort. New Yorkers already pay a lot of taxes. But a proposal for a
surcharge on the wealthiest New Yorkers is certainly in order considering the
state’s economic woes ...
In a state and city with the country’s
widest income disparities between the rich and the poor, protecting the
underdog is all the more necessary.
The landscape is already polarizing as the business-oriented Citizens
Budget Commission calls for controlling government spending on social services
while the labor-friendly Fiscal Policy Institute urges ramping up taxes for
higher income brackets.
July 30, 2008. A special
roundtable discussion on New York's economic health convened by WAMC-Albany
in the wake of Governor Paterson's proposed budget cuts. Hosted by Alan Chartock.
"Increasing taxes on higher-income people is less harmful than cutting
government spending," Renwick said. "It should be a balanced approach that
doesn't put increased stress on people who can least afford to pay."
July 30, 2008.
Home health aide union steps up campaign. 1199 SEIU intends to strike if
contracts are not ratified with 25 area home care agencies by mid September,
rally planned for Aug. 7. By Daniel Massey, crains.com.
July 29, 2008. Governor Paterson's speech on the state's financial
situation: outlook and commentary. On the Economy hosted by Bloomberg's Tom
Keene.
Frank Mauro, executive director of the Fiscal Policy Institute, a
nonpartisan group near Albany, said history offers some choices that can work.
One is the temporary surcharge on higher incomes that was used by New
York in 2003, Mauro said. For three years, incomes over $150,000 and $500,000
paid extra in different degrees, helping the state through a crisis then.
The federal government should help states, Mauro said, because it can
run a temporary deficit with less harm than if the states try it. This would
prevent states from cutting spending and thus adding to recessionary pressure
even as federal stimulus payments go out to try to combat recession. The
federal government has helped with temporarily higher Medicaid matches and
revenue sharing.
June 16, 2008.
Arguments Against a Property Tax Cap. A segment on Capital Tonight with
Brian Taffe of Capital News 9, joined by David Little, the
Director of Governmental Affairs for the New York School Boards Association, and
FPI executive director Frank Mauro.
May 28, 2008.
For the
record. Unionization translates to higher wages for low-wage workers,
according to a joint report released May 15 by New York's Fiscal Policy
Institute and the Center for Economic and Policy Research in Washington, D.C.
The Chief-Leader.
May 15, 2008.
Report: Low-wage union workers get 16% more. A new study shows that
unionized workers in the lowest wage brackets in New York state earn 16% more
than non-union workers with similar education. By Daniel Massey, Crain's.
Wouldn't it be nice if there were a mechanism to keep your property
taxes in line with your income? Proposed bill would cap property taxes based
on homeowner's annual income. About 340,000 upstaters could benefit.
April 29, 2008.
PILOT would just subsidize resort. An op ed by John K. Mullen, a professor
of economics and finance at Clarkson University, in the Adirondack Daily
Enterprise.
Social inequality and injustice form another sin. A glance around the
city and the state makes the point quickly enough.
Underlining that reality is a new study by an Albany-based research
group, the Fiscal Policy Institute. It shows that the gap between rich and
poor in New York State keeps widening. A chasm is more like it. In the late
1980s, the study said, families in the top 20 percent of earners made about
seven times as much as those in the bottom 20 percent. By the middle of this
decade, they were making about nine times as much.
April 16, 2008. Pols call for hedge
fund taxation. Bloomberg, New York Metro.
New York - Six New York City Council members endorsed a proposal to
extend the city’s tax on unincorporated businesses to include private equity
and hedge fund managers, saying it would raise as much as $225 million.
The lawmakers joined with janitors representing the Service Employees
International Union, members of the Working Families Party and the laborfunded
Fiscal Policy Institute to call for the taxation of performance fees managers
take.
April 10, 2008.
An Agent of Change in an Age of Chaos. A podcast by Sam
Roberts, New York Times. In a
tribute to Barry Gottehrer,
Sam alludes to FPI's recent report,
Pulling Apart, to show that problems facing
the city - unmasked more than forty years ago by Gottehrer's award-winning reporting
for the Herald Tribune - still persist today despite greater public order.
February 22, 2008.
Bush budget stiffs New York: report. President George Bush's 2009 budget
could cost New York State $1.7 billion in federal support, according to the
Fiscal Policy Institute. By Tommy Fernandez,
Crain's New York Business.
The Fiscal Policy Institute has an easy remedy for Gov. Eliot L.
Spitzer's decision to trim aid increases he promised schools as part of a
four-year plan. The institute calculates that the slowdown would cost Buffalo
$5.6 million. That's a lot of teachers, books and other necessities in a
district with lots of poor students - in both senses of the word.
The answer: temporarily increasing the top income tax rates on the
state's highest earners, as the Legislature did in 2003 when it passed a
three-year surcharge over the veto of then-Gov. George E. Pataki.
Granted, it's a radical notion, expecting those with the most to help
those with the least.
But Frank Mauro, institute executive director, recalled Pataki singing
the same "sky will fall" song the well-off always sing when we talk about
helping poor kids. The threat was that raising taxes on those who benefit most
would slow the economy and make people flee the state.
"Neither of those things happened," Mauro said at last weekend's New
York State Association of Black & Puerto Rican Legislators conference in
Albany.
...
Beyond dealing with the current problem, Mauro said, a permanent
surcharge on the highest earners also would reduce property tax pressures on
low-and middle-income homeowners. That would be a permanent benefit.
The non-partisan Fiscal Policy Institute endorsed the circuit breaker
concept as a mechanism for temporary tax relief. But in doing so, it also
called on the state to stop shifting the tax burden to local governments and
to enact systematic changes in fiscal policy to correct what created the high
taxes.
January 31, 2008.
多团体发起移民教育运动.The
Epoch Times (Australia).
January 31, 2008.
Tax reform long overdue. A letter to the editor by
Robin Vaccai Yess, Middletown Times Herald-Record.
Funding schools through property taxes is inequitable, unfair and
unrelated to a person's ability to pay. Until it changes to an income-based
tax to fund schools, our seniors and young families will continue to be forced
out.
It's a two-part problem - the funding mechanism and school district
spending. If district budgets continue to rise by more than twice the rate of
inflation, the tax must continually increase. So, yes, we need a different,
equitable method to fund schools, but school spending must simultaneously be
brought under control.
The commission should seek help from the Fiscal Policy Institute, the
Public Policy Institute and the numerous tax reform groups throughout the
state for tax reform solutions that have already been developed. Many members
of the Assembly and Senate, who are paid with taxpayer dollars, have drafted
proposed legislation.
January 17, 2008.
We Want Higher Taxes. [Thanks Jay for the snappy headline. What we really
want is to take a fresh look at rolling back all the tax cuts enjoyed by those
with the highest incomes - in order to ease the pressure of property taxes as
well as income taxes on those of more modest means.] By Jay Jochnowitz, Capitol
Confidential.
Immigration is much more a blessing than a problem in New York. New
immigrants have made a marked contribution to virtually every community in
Queens. In Jackson Heights, Elmhurst and Flushing, immigrant-owned businesses
have flourished, creating jobs and raising property values. These businesses pay
taxes that enable the city to build schools and pay for health care for the
poor.
December 5, 2007.
25% of NYC construction jobs are 'off the books.' The fiscal costs to
taxpayers were $489 million in 2005 and are likely to reach $557 million in
2008, according to a report. By Tom Frederickson, Crain's New York Business.
FPI's study concluded that immigrants contributed $229 billion to the
New York state economy in 2006; that's about 22.4 percent of the state's GDP.
According to David Dyssegaard Kallick, an author of the report, "These
figures should wipe away any impression that immigrants are holding the New
York economy back; in fact, immigrants are a central component of New York's
economic growth."
November 27, 2007.
City of immigrants. An editorial from the New York Daily News.
New York's burgeoning immigrant population is helping to build just what
this city needs to prosper: a thriving middle class. So says a new study that
examined in detail the economic impact that the foreign-born are having on the
Big Apple.
Any way the Fiscal Policy Institute researchers sliced the data, they
found the city's 3 million immigrants - legal and illegal - are pulling their
load. The researchers also uncovered how the immigrants have become deeply
woven into the fabric of life.
...
The numbers add up to the fact that the 3 million New Yorkers born
overseas have had surprisingly positive impacts on a city whose neighborhoods
would wither without them. They are opening large numbers of small businesses,
and more than half have become U.S. citizens. They can vote and they will
surely remember politicians who play on nativist fears.