Category Archives: Taxes

Many Cheers But One Big Jeer for NYS Governor Cuomo: Local Control

NYS Governor Andrew Cuomo takes aim at local control and public schools © 2017 Karen Rubin/news-photos-features.com
NYS Governor Andrew Cuomo takes aim at local control and public schools © 2017 Karen Rubin/news-photos-features.com

By Karen Rubin, News & Photo Features

There is much to cheer in Governor Cuomo’s State of the State address, one of which he delivered at SUNY Farmingdale on Long Island. His agenda for infrastructure, mass transportation improvements, water quality, affirming women’s reproductive rights,  support for immigrants and refugees, free tuition at public colleges for those who qualify, and how he couples the need for aggressive climate action with vigorous sustainable economic development, giving his blessing leading to LIPA’s landmark decision for a 90 megawatt off-shore windfarm to supply the East End, the first utility-scale project in America and making Long Island a leader in a new American industry, put Cuomo in line another New York Governor, Franklin Delano Roosevelt, which FDR brought to the White House as the New Deal (and it is clear Cuomo is jockeying for an eventual run for president).

The one jeer? His renewed assault on local control, which he casts as the culprit for unceasingly high property taxes, which is a not-really-veiled attack on public education.

Each year, Cuomo has used a different mechanism to make the property tax cap – which limits the amount a municipality can raise through property taxes to 2% or the CPI, whichever is less – an offer that can’t be refused. This year, Cuomo has unveiled a “groundbreaking” proposal which mandates the county executive “to develop localized plans that find real, recurring property tax savings by coordinating and eliminating duplicative services and proposing coordinated services to enhance purchasing power, such as jointly purchasing and coordinating use of expensive transportation or emergency equipment. Taxpayers will then vote on these cost-saving plans in a referendum in the November 2017 general election.” If the referendum fails, well then, the plan would need to be reworked and resubmitted in November 2018. (Notably, New York City is exempted.)

But the argument begins with a flawed argument that we spend 2.5 times on property taxes than state income taxes. Doesn’t that spending differential reflect how much we pay for the services we actually receive locally? Plowing snow. Repairing roads. Treating sewage. Picking up garbage. Delivering water. Maintaining police, fire and emergency services. Keeping street lights on. And yes, public education.

Though people like to charge that Long Island pays the highest property taxes in the country, that isn’t true. Nor do New Yorkers pay the highest taxes in the nation, When all taxes are tallied –real estate, income, sales taxes and fees, New York comes in 6th (behind Illinois, Nebraska, Wisconsin, Connecticut and Rhode Island).  Nor are the taxes out of line to the incomes earned and home values. But most importantly, for the quality of municipal services including public schools, we want in our community.

Question for Cuomo: before you forcibly consolidate local governments, how much money would be saved by the exercise and how would consolidation actually work? North Hempstead already promotes intermunicipal cooperation; the school districts already participate in joint purchasing and shared services (BOCES) wherever practicable. Indeed, Great Neck public schools now earn a tidy sum in revenue from other districts for tuition paid into programs such as SEAL (rather than paying out $1 million in tuition). If there is waste and duplication, voters can show their ire at the ballot box or make their better-government suggestions known at public meetings.

But the real target of Cuomo’s assault on local governments and property taxes is public education, since 60-65% of the property tax bill goes to fund schools.

Talk about wasteful duplication. If he were so concerned, Cuomo wouldn’t be pushing for a second tier public school system – for-profit charter schools – without the same financial or academic accountability or subject to the same state mandates, to divert money from public schools.

Indeed, Long Islanders wouldn’t pay so much in property taxes if we weren’t so shortchanged in state aid for our public schools – though Long Island has 17% of NY’s student population, we only receive 12% of  state aid. It is a lot more obvious when you compare the percentage of school budgets funded by state aid: New York City, where property taxes are low and just about everybody gets some sort of tax holiday, gets 50% of its school budget paid by the state; in comparison less than 5% of Great Neck’s school budget comes from the state. Also, new enterprises, like Avalon Bay residential development, are getting a PILOT by Nassau County’s IDA, reducing the taxes they contribute to the school district as well as Village of Great Neck; the difference is made up by homeowners.

Governor Cuomo has made property taxes, and particularly school taxes, the enemy, falsely claiming that the taxes inhibit growth. But the services that are funded through property taxes contribute to economic growth and activity (an educated workforce, lighted roadways) as well as quality of life.

“Economic theory expects people to consider taxes when deciding where to live, but most studies show taxes only tangentially influence these decisions,” explains Stephanie Hunter McMahon, professor of law at the University of Cincinnati College of Law, in a WalletHub report. “Taxes are, therefore, more influential for what they do or do not provide rather than the rate itself…these taxes are really payments for the goods and services state and local governments provide to the taxpayer and other members of the community.”

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© 2017 News & Photo Features Syndicate, a division of Workstyles, Inc. All rights reserved. For editorial feature and photo information, go to www.news-photos-features.com, email editor@news-photos-features.com. Blogging at  www.dailykos.com/blogs/NewsPhotosFeatures.  ‘Like’ us on facebook.com/NewsPhotoFeatures, Tweet @KarenBRubin

New Year’s Resolution: Work for Social Justice so Less Need for Christmas Charity

Bah. Humbug. The obsession with giving gifts and turkeys and charity at Christmas does little to correct the systemic causes of poverty and inequality © 2015 Karen Rubin/news-photos-features.com
Bah. Humbug. The obsession with giving gifts and turkeys and charity at Christmas does little to correct the systemic causes of poverty and inequality © 2015 Karen Rubin/news-photos-features.com

by Karen Rubin/News & Photo Features

I have a love/hate relationship with Christmas. As we start the New Year. let me tell you about the “hate” part.

I hate that Christmas becomes the one day of the year that is supposed to make up for all the actions that have resulted in the greatest inequality and lowest upward mobility since the Gilded Age and the greatest of all advanced countries. The American Dream has been exported, outsourced, and rendered to myth rather than reality here at home.

This year, Republicans – even as they cling more ardently than ever to Guns and God – don’t even pretend to care about the less fortunate, and promise to perpetuate and make worse the very policies that have resulted in 22 out of every 100 school-age children living in poverty (16 million), while 45% of children live in low income families; and 14.3 percent of households (17.5 million, or one in seven households) were living with food insecurity.  Rather than doing anything to correct the societal conditions that promulgate these travesties, they prey on people’s insecurities, foment their fears and anxieties (Ebola! ISIS!), but do everything possible to thwart progress to alleviate the real source of daily desperation.

I particularly hate the obsession with Toys for Tots – as if handing out a gift at Christmas will make up for all the misery and anxiety that children live through the rest of the year.

Many of the same people who make a show of handing out a turkey for Christmas also withdrew Food Stamps and attacked the school nutrition program, two of the mightiest tools in a limited tool chest to keep people out of poverty, while helping children succeed in school (hunger is a viscously powerful impediment to learning) – and not incidentally, stimulating local economies to break the vicious cycle.

“There are neighborhoods in Baltimore in which the life expectancy is 19 years less than other neighborhoods in the same city,” Susan Grisby reported in “The Most Racist Areas in the United States” (Daily Kos, May 3, 2015). “Residents of the Downtown/Seaton Hill neighborhood have a life expectancy lower than 229 other nations, exceeded only by Yemen. According to the Washington Post, 15 neighborhoods in Baltimore have a lower life expectancy than North Korea…And while those figures represent some of the most dramatic disparities in the life expectancy of black Americans as opposed to whites, a recent study of the health impacts of racism in America reveals that racist attitudes may cause up to 30,000 early deaths every year.”

We are living Charles Dickens “Christmas Carol” but while the classic story sets out the problems, I have always been troubled by the “moral”: that the rich guy who got so rich by exploiting the desperation of others can simply buy presents and give money away to redeem his soul. That’s not the solution.

But the “billionaire class” as Bernie Sanders likes to call them (George W. Bush called them “the haves and the have-mores. Some people call you the elite. I call you my base.”) has no real interest in correcting the institutional causes of systemic poverty – public education system, tax policy, criminal justice system, health care, environmental policy and rigged election system – all of which also bolster the “haves” and “have-mores”. That’s because the demise of the middle class as more and more sink into poverty suits their greater purpose, and what the hey, if you can just throw around some bucks here and there to redeem your soul and your reputation, while lording over everybody else, so much the better.

And because “cash” is increasingly linked with “political power” (the Right Wing Majority on the Supreme Court equated cash with speech and corporations with people for the purpose of buying politicians), the more cash the more power. The converse is the less cash, the more politically silent and invisible you are. People who are juggling multiple jobs and living pay check to pay check tend not to have the same political influence.

The Republicans are working feverishly to increase the invisibility of the underclass, mounting a Supreme Court challenge that will effectively erase unregistered voters from the census altogether, meaning less representation, less funding (which is also apportioned based on that head count).

“Wages are too high,” self-proclaimed billionaire Donald Trump, the Republican presidential front-runner, bellowed in response to a call to raise the federal minimum wage, doing a perfect but unintended imitation of Ebenezer Scrooge.

The United States of America is not supposed to have an aristocracy or a class system of privileges, but these policies have done exactly that. And in the nation with the highest percentage of incarcerated prisoners in the world (5% of population but 25% of the world’s incarcerated), you even have a new criminal classification, “Affluenza” – the “affliction” that resulted in a 16 year old getting off scot free after murdering four people with a car he was driving unlicensed and drunk (he has since fled after violating the terms of his probation). It’s a justice system which sees the very bankers who bankrupted millions of Americans and clawed back pensions and health benefits of bankrupt cities (Detroit), collecting millions of dollars on their parachutes.

It’s “free money” (actually, not really free, it comes out of others’ pockets) that they turn around and “invest” in political campaigns and, yes, in philanthropy.

Some of the most notorious “banksters”, like Madoff and Great Neck’s own Steven Cohen, whose investment company SAC racked up $9.4 billion, are also some of the most generous. Cohen is a $1 billion patron of the Robin Hood Foundation among other philanthropic contributions (museums, hospitals, schools).

Another Great Necker, Leonard Litwin, who made a fortune with his Glenwood Real Estate company, has been a generous supporter of Temple Beth-el of Great Neck, funding the Litwin Challenge that enabled the synagogue to pay off its multi-million dollar mortgage. Glenwood Real Estate was at the heart of the corruption scandal that has (so far) taken down state leaders, Democrat Sheldon Silver and Republican Dean Skelos. In essence, his company made tens of millions of dollars in campaign contributions that helped put these politicians in power, then gave favors in order to secure favorable legislation, like tax abatements.

“The money, according to Mr. Dorego, Glenwood’s senior vice president and general counsel, was used to ensure the developer would continue to benefit from tax breaks, government financing and favorable rent laws. One program alone saved them as much as $100 million, he said,” William K. Rashbaum reported in the New York Times (“Albany Trials Exposed the Power of a Real Estate Firm,” Dec. 18, 2015).

“Glenwood also benefited from another state-administered program, using it to obtain more than $1 billion in low-interest, tax-exempt bond financing since 2000, to buy land and construct eight buildings it has put up since 2001, according to testimony at Mr. Silver’s trial.”

This is far from benign, but has a big ripple effect on working stiffs. It is a big reason why New York City, with the richest property in the world, doesn’t raise enough in property taxes to pay for its public schools, but depends New York State aid for 50 percent of its $25 billion operating budget. That $12.5 billion comes from income taxes from the rest of us, and is a major reason why Long Islanders pay such high property taxes (we don’t get 50% of our public school budgets paid for out of state aid). Who pays for tax abatements? Why working stiffs, of course.

That’s where philanthropy comes in. Charity does not just buy redemption, it also buys respect and resurrects a reputation. Take the Koch Brothers, for example. They are the singularly greatest example of money buying political power (and vow to spend $889 million in the 2016 campaign) in order to direct policy to their own interest and against average people (promoting fossil fuels over renewables, overturning environmental regulations, tax policy that favors the rich especially a repeal of the estate tax, gun rights, anti-reproductive rights, and the latest, criminal justice “reform” so that their companies can pollute and claim ignorance of the law to evade accountability).

They slap their name on everything, from the Smithsonian Institution’s Hall of Human Origins to PBS programming, to the Metropolitan Museum of Art, so we are to feel grateful for their patronage, like the Medicis. What we should feel is like peons, increasingly dependent on their largesse while public coffers are bankrupted.

It is especially dangerous when the contributions come with strings – like the Kochs funding economics departments at colleges in order to pick and choose the academics and the particular brand of economic philosophy. Or the Waltons (the six Waltons have more wealth than the bottom 30 percent of all Americans, 100 million people) funding charter schools in order to insert their own particular educational agenda (creationism as science, worker bees instead of independent thinkers).

It is in this same vein that we have Ebenezer Scrooge, who by the end of his spiritual awakening, “solves” the problems of horrendous poverty and inequality by throwing toys and money at it. It is like putting a band-aid on a patient with tuberculosis.

“The world may need a reimagined charter of philanthropy — a ‘Gospel of Wealth’ for the 21st century — that serves not just American philanthropists, but the vast array of new donors emerging around the world,” wrote Darren Walker, president of the Ford Foundation, in a New York Times op-ed, “Why Giving Back Isn’t Enough,” (Dec. 16, 2015).

“This new gospel might begin where the previous one fell short: addressing the underlying causes that perpetuate human suffering. In other words, philanthropy can no longer grapple simply with what is happening in the world, but also with how and why.

“Feeding the hungry is among our society’s most fundamental obligations, but we should also question why our neighbors are without nutritious food to eat. Housing the homeless is an imperative, but we should also question why our housing markets are so distorted. As a nation, we need more investment in education, but not without questioning educational disparities based on race, class and geography….

“Whatever our intentions, the truth is that we can inadvertently widen inequality in the course of making money, even though we claim to support equality and justice when giving it away. And while our end-of-year giving might support worthy organizations, we must also ask if these financial donations contribute to larger social change.

“In other words, ‘giving back’ is necessary, but not sufficient. We should seek to bring about lasting, systemic change, even if that change might adversely affect us. We must bend each act of generosity toward justice.”

What would make a difference to break systemic poverty and inequality? Here are key ones:

Tax policy, which is supposedly “progressive” but in toto perpetuating extraordinary advantage to the wealthiest, taxing wages more than wealth. Raising the cap on income taxed to pay for Medicare and Social Security would alleviate the burden which is disproportionately placed on workers (if all income was subject to tax, you could reduce the percentage by a lot, which would mean a big boost in take-home income for everyone). Transaction tax on securities to de-incentivize short-term investing and make capital function more productively, as it is supposed to; making corporations pay their share, and taking away the incentive to offshore profits and jobs. (See, “For the Wealthiest, a Private Tax System That Saves Them Billions,” New York Times, Dec. 30, 2015).

Promote a living wage: raise the minimum wage and cease the war on unions.

Reform immigration and provide a path to legal status for the undocumented residents (deal with the question of citizenship separately). This will eliminate a gigantic underclass which presently depresses the wages of everyone while suppressing the economic stimulus that would come from legal status.

Reform criminal justice that unfairly penalizes and imprisons poor people, disadvantaged people, people of color, and destroys families as well as that individual’s ability to get a decent job.

Continue the progress of Obamacare (Affordable Care Act) to make health care more affordable, accessible. Continue putting more resources into prevention and wellness, which will increase productivity and savings. Expand, don’t shut down, Planned Parenthood and access to contraception and reproductive rights. Treat gun violence as the public health crisis it is – not just in the dead, but in the lifetime of lost productivity due to injury, a cost estimated at $228 billion ($8.6 billion in direct costs, $221 billion in indirect costs, according to SmartGunLaws.org),

College affordability – eliminating a barrier to the best ticket to upward mobility, as well as the chains that result from student debt. Now amounting to $1.2 trillion, student debt is like indentured servitude, preventing graduates from buying a home, taking a loan to start a business or even pursuing careers of choice.

Improve access to home ownership – this not only gives a family an asset, a hedge against ever-rising rents, stability, roots, but a connection to community (and likely greater inclination to vote).

Make quality child care accessible and affordable.

Improve mass transportation and safe streets, so that people can get to work affordably, efficiently and without fear.

Give the underclass a voice and a force: Improve access to voting. Make voter registration more efficient and reliable and clear. Make Election Day a holiday, expand voting to include a weekend, overturn arbitrary limitations to absentee ballot. Have standards for polling places and voting machines so that some districts are not forced to wait hours to vote. Make sure the census counts everyone (not just registered voters). Eliminate gerrymandering. Because, just as money is becoming a greater factor in campaigns, politicians are increasingly beholden to maintaining the policies that only add to inequality and social injustice.

It’s scary how much “A Christmas Carol” and Frank Capra’s “It’s a Wonderful Life” still resonate today.

Consider what George Bailey says to Mr. Potter, speaking about George’s father who founded the Building & Loan: “He didn’t save enough money to send Harry away to college, let alone me. But he did help a few people get out of your slums, Mr. Potter, and what’s wrong with that? Why… here, you’re all businessmen here. Doesn’t it make them better citizens? Doesn’t it make them better customers? You… you said… what’d you say a minute ago? They had to wait and save their money before they even ought to think of a decent home. Wait? Wait for what? Until their children grow up and leave them? Until they’re so old and broken down that they… Do you know how long it takes a working man to save $5,000? Just remember this, Mr. Potter, that this rabble you’re talking about… they do most of the working and paying and living and dying in this community. Well, is it too much to have them work and pay and live and die in a couple of decent rooms and a bath? Anyway, my father didn’t think so. People were human beings to him. But to you, a warped, frustrated old man, they’re cattle. Well in my book, my father died a much richer man than you’ll ever be!” 

In essence, such systemic improvements to our society would directly benefit, rather than detract from the wealthiest. It is the “rising tides lift all boats” scenario – not just in requiring less of society’s resources to go to “save” the destitute, but in a healthier, more productive society altogether. There will still be rich, middle class and even poor, but the difference is that poverty would not be as severe, as prolonged, or a generational sentence. Society would restore upward mobility – the essence of the American Dream – and benefit from individuals being able to fulfill their full potential.

So let’s turn to New Year’s resolutions, when we make pledges to be better people. And let’s hope this resolution carries through the Presidential Campaign season which already seems to be a test of who can be the cruelest (which to many interpret as “powerful” and “leadership”).

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© 2015 News & Photo Features Syndicate, a division of Workstyles, Inc. All rights reserved. For editorial feature and photo information, go to www.news-photos-features.com,  email krubin723@aol.com. ‘Like’ us on facebook.com/NewsPhotoFeatures, Tweet @KarenBRubin