ES2 Economic Security Campaign

Empire State Economic Security Campaign (ES2)
Legislative Agenda for SFY 2011-2012

New York is at a crossroads. Like every other state, New York faces serious fiscal challenges. In this crushing recession, families’ needs are rising and the resources to meet them are falling. We need to respond in ways that grow the economy by investing in families and communities across the state.

A quality education, affordable healthcare and housing, a healthy environment, a strong safety net and a sound transportation infrastructure are essential ingredients for a strong state economy for all of us, today and in the future.

Ours is a tale of two New Yorks…. a New York where the wealthiest 1% of residents receive 35% of all income (in NYC the wealthiest 1% control a whopping 45% of all income) and have seen significant income gains over the last two decades … and another New York where families are living paycheck to paycheck (if they are lucky enough to have a job) and have seen their wages remain virtually stagnant and their services reduced. New York State now has the greatest income inequality of any state in the nation. The economic reality is simple…. if we don’t grow together we will continue to pull apart.
Rather than slashing education, health care, the safety net and the other services that New Yorkers depend on, the Governor and the Legislature should balance the budget in a way that uses existing resources efficiently and raises additional revenues in ways that will not harm our already fragile economy. This is not the time for actions that will hinder the growth of New York’s economy or hurt the children and families hit hardest by the recession.

We believe the Governor and the Legislature should follow two simple principles:

Do No Harm: With 850,000 New Yorkers unemployed, families facing record foreclosures, and hunger and homelessness rising – we must ensure a strong social safety net. Do not let our most vulnerable citizens bear the brunt of this recession. They did not cause this economic meltdown and are already suffering its consequences.

Preserve, Protect and Create Jobs: We need to do everything possible to preserve and create jobs in the public and private sector.

To Balance the Budget fairly we recommend that the Governor and the Legislature:

Not Give Tax Cuts to the Wealthiest New Yorkers
Over the past 30 years, the top NYS income tax rate has been cut in half. Given that the wealthiest New Yorkers are getting to keep their Bush Tax Cuts (reductions in federal income tax for at least another two years) this is not the time to end New York’s temporary top rates on higher income households.

Current Personal Income Tax Rate Structure - with temporary top rates (joint filers):

4% on income under $16K
4.5% on income between $16K and $22K
5.25% on income between $22K and $26K
5.9% on income between $26K and $40K
6.85% on income between $40K and $300K
7.85% on income between $300K and $500K
8.97% on income over $500K

We should also examine adding an additional bracket for income over $1 million per year. Allowing these upper income surcharges to expire would mean a loss of about $5 billion annually to NYS. We must also acknowledge that the wealthiest 1% of New Yorkers are paying far less of their income in state and local taxes (approximately 7 percent) than the bottom 80 percent (approximately 11%). This is unfair and unsustainable.

Close Corporate Tax Loopholes and Retool Economic Development Programs
We continue to provide tax credits, abatements, grants and tax avoidance loopholes to very large corporations at the expense of small businesses and workers. This state has squandered billions of dollars in the name of job creation. NYS should ensure that corporate tax breaks and state economic development grants are tied to the creation and retention of jobs that pay good wages and include benefits. These jobs should also be targeted to green industries and focus on providing low-income and unemployed New Yorkers with jobs first.

Stop Giving Back $14 Billion to Wealthy Wall Street Brokers
New York State currently collects, and then gives right back to stock brokers (in the form of an electronic rebate) a miniscule tax collected on stock market sales. We collected this tax for over 70 years with no ill effect to the NYSE and other major stock exchanges like London and Singapore still continue to collect similar taxes with no negative impacts.

We need to make sure that the programs and services that so many struggling families in New York rely on are there for them in their time of need. The funding initiatives outlined in the following position papers reflect the needs of New York’s neediest citizens and should be enacted to ensure that struggling families do not bear the brunt of the budget shortfall.