While mainstream newspapers have virtually ignored the latest efforts of the State Black, Puerto Rican and Hispanic Caucus and the City Council Black, Latino and Asian Caucus, the groups have jointly developed an alternative long-term revenue plan to insure the future of the city and state
For the first time in the history of the State of New York, on March 20, 2003, the New York State Black, Puerto Rican and Hispanic Legislative Caucus, chaired by Assemblyman Roger L. Green, and the New York City Council Black, Latino and Asian Caucus, co-chaired by Councilpersons Hiram Monserrate and Helen D. Foster met in a joint session. Both bodies indicated it was imperative that they come together to address the budget proposed by Governor Pataki, which would devastate New York City, if allowed to pass. As a result of this session and subsequent working sessions, the joint caucuses have developed a revenue package as an alternative to that being proposed by Governor Pataki. The state and city caucuses intend to bring this message to Pataki and Mayor Bloomberg, respectively.
The Joint Caucus Revenue Package, if adopted, would provide $8 billion in additional revenue. Assemblyman Roger L. Green stated, “There is an urgent need for us to come together to stave off the destructive cuts the Governor is planning, which would cripple New York City. The governor’s proposed budget contains the largest school-aid cut in New York history – increasing class sizes, shutting down pre-K programs, and reducing instructional services for our children. The revenue enhancements we are jointly proposing would reverse these cuts.”
Assemblywoman Annette Robinson adamantly insisted that, “We must consider an alternate plan, because Governor Pataki’s proposal is detrimental to both our educational and health care systems, and deprives New York City of the vital services needed to sustain its residents and protect their future.” She further stated, “Because our proposal has maintenance-of-effort prescriptions built into it, the redirection of resources will be avoided and we will be able to ensure dedicated funds, such as those earmarked for education, will be provided to their intended programs.”
“Despite Governor Pataki’s rhetoric about avoiding ‘job-killing taxes,’ the reality is the governor’s budget contains over $6.7 billion in numerous covert taxes that will eliminate jobs and services for the working class and poor families in New York City and statewide,” added Assemblyman Carl Heastie. He went on to state that, “Our plan will help to reduce the structural imbalance in the state budget and protect services to our children and families.”
Assemblyman Adraino Espaillat agreed that, “This joint plan, if implemented, would protect pre-K and the ladder program: Our joint proposal proves that we can resolve our state’s fiscal crises without putting the City’s future at risk.”
Reinstate Commuter Tax $900 million
Tax commuter income at 1/4 city income tax rate
Personal Income Tax Surcharge – Expected revenue between $2.7 to $3.3 billion per year”
Add a graduated surcharge to New York State Adjusted Gross Incomes above $100,000.
INCOME RANGE RATE REVENUE GENERATED
$100 – 149K 0.75% $ 50,528,700
$150 – 199K 1.0% $154,059,105
$200 – 499K 1.5% $288,102,160
$500 – 999K 2.0% $841,987,885
$1.0M – 4.9M 2.0% $682,852,230
$5.0M – 9.99M 2.0% $301,954,245
$10.M-Over 2.0% $495,804,510
Dedicate a portion of this revenue to education in the “Big-5” school districts (Buffalo, Rochester, Syracuse, Yonkers and New York City) with a maintenance-of-effort and a sunset provision for 5 years.
.Close Corporate Loopholes $940 million
. Reform “transfer pricing” rules to prevent corporations from shifting profits offshore
. Reform Alternative Minimum Tax to ensure all large, profitable corporations pay taxes. End exemption for insurance companies.
.Tax Collection on E-Sales – Expected Revenue $1 billion
It is estimated that three-quarters of the sales tax revenue, that is not being collected, is from businesses making purchases over the Internet. A University of Tennessee study estimates that New York is currently losing over $1 billion in unrealized e-commerce sales and use-tax revenue, and is projected to lose $3.6 billion in 2006 and $4.3 billion in 2011.
Stock Transfer Tax (“Partial repeal of rebate”) $2.75 billion
Reinstate a stock transfer rate at 2 cents per share, (1/2 of pre-1981 rate)
Explore amending the stock transfer tax
(i.e., dedicating these revenues to an emergency recovery initiative and building aid)
Total Revenue Raised $8.2 Billion
Oppose the Governor’s proposed tax on clothes
This is a regressive tax that will have a negative impact on the working class, the working poor and poor families. This tax will also be injurious to small retail businesses.