More corporate welfare and giveaways won’t create jobs Some really bad ideas The Cuomo administration is out with a new public relations blitz over a set of recommendations for “lower taxes” but it may cost a lot of jobs and further slow the economy without providing any relief. New York gives away nearly $2 billion a year in corporate welfare and tax giveaways to the super-wealthy — up significantly since 2005 — and Cuomo’s Tax Commission, headed by former Gov. George Pataki and former state Comptroller Carl McCall, wants to do even more of the same. Small problem: the facts show this policy has actually cost New York jobs. An extensive study by Marilyn M. Rubin of John Jay College and Donald Boyd, former director of the Rockefeller Institute of Government State and Local Government Finance Research Group, concludes that the giveaway programs are simply costing taxpayers plenty without producing positive economic results. It was prepared for Cuomo’s original Commission on Tax Reform and Fairness. But, apparently dissatisfied with these findings, Cuomo appointed the Pataki-McCall Commission to produce different results. These shocking facts and the evidence of political manipulation have only recently been brought to light by journalist and corporate tax reform advocate David Cay Johnston. The issue has received scant coverage in the mainstream media. “Think of it this way: Over nine years, the state of New York gave businesses roughly $10 billion, or almost $1,400 from each household, in a jobs program that eliminated 175,000 jobs at an average cost of $57,000. And that’s just state-level subsidies, not those from industrial development agencies,” Johnston wrote. The Cuomo proposal also promises the illusion of property tax relief but only to localities that stay within the 2 percent property tax cap and meet a vague standard of “meaningful” steps to consolidate and merge services with other localities. The ability to do this is extremely challenging considering New York state continues to eliminate essential state services across New York, costing jobs and necessary services in local communities, and leaving localities to deal with the economic fallout. It also comes as Cuomo is promising more tax giveaways at local taxpayers’ expense and moving forward with questionable initiatives such as the Tax-Free New York program (now called Start-Up NY) that will let employees of start-up companies based on college campuses not pay state income taxes, while the companies get to avoid other local taxes. Struggling localities have seen state aid cut during the past number of years. The tax giveaways are likely to be a contentious issue when the legislature returns to Albany in January. “Think of it this way: Over nine years, the state of New York gave businesses roughly $10 billion, or almost $1,400 from each household, in a jobs program that eliminated 175,000 jobs at an average cost of $57,000. And that’s just state-level subsidies, not those from industrial development agencies.” Labor Religion coalition helps Strong Communities Work on faith The New York State Labor Religion Coalition is on a mission. Founded more than 30 years ago to promote understanding and activism around social justice issues, the coalition has undergone a dramatic refocusing of its priorities over the past couple of years. The result is a stronger interfaith network of clergy, people of faith and labor activists committed to decent treatment of working people, fair trade, economic inequality and moral system of taxes here in New York. The coalition also seeks state and local budgets that provide a strong social safety net, quality education and public health. The statewide coalition is building bonds with groups and individuals across New York and has been actively involved in advocating for issues such as raising the minimum wage and addressing the unacceptable levels of hunger and poverty in the state. The coalition’s annual 40-hour Fast will be occurring soon, and helps bring attention to the fact that many working Sara Niccoli, executive director of the Labor-Religion Coalition of New York State, calls on state and federal officials to do more to end hunger and income inequality in the state. people earn less than what would allow them to afford decent, nutritious meals, often choosing between food and other necessities. The Fast allows participants to put their beliefs into action. To learn more about the coalition’s activities and to get involved, visit www.labor-religion.org. January 2014 The Work Force 3
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