School, Health Care Leaders Stump for “Millionaire’s Tax”

Reported by: Jecoliah Ellis
Tuesday, Feb 10, 2009 @05:15pm EST
Rochester Homepage.net, February 11, 2009

Education, healthcare and social services leaders in Monroe County are supporting the so-called “Millionaire’s Tax.” On Tuesday morning, they kicked off what they call a Fair Share Tax Reform campaign. Supporters say New Yorkers making more than $250,000 should pay more in income tax. If approved by lawmakers, it would raise $5b in revenue for the state.

Here’s the breakdown:

If you make $40,000 through $4 million, you already pay 6.85% in income taxes to the state.

• Under the current budget, people making more than $250,000 would see an income tax rate increase of 1.40%. Proposed is a rate increase of 8.25%. That would create an estimated $541 million for the state.
• People making $500,000 will see a tax rate increase of 2.12. The tax reform campaign is proposing an increase of 8.97% – which would raise $666 million for the state.
• Finally, millionaires are looking at a 3.45 tax rate increase. The tax reform campaign is proposing a jump to 10.30%, which would generate $3.8 billion. All told, that’s $5 billion.

Most New Yorkers pay 6.85% in income taxes regardless of their annual pay. “A firefighter, police officer, a school teacher earning $40,000 a year is paying the same tax as a CEO of a huge corporation in the state of New York. So we feel the CEO’s of those corporations could pay more,” said Demond Meeks, Alliance For Quality Education.

If the Fair Share Tax Reform is approved deep cuts to education, healthcare and community programs could be avoided. These cuts are expected to hurt the quality of life for hundreds of thousands of New Yorkers. One of them is Susan Stahl uses a wheelchair. “I have a disability. I need assistance with my personal care that includes dressing, eating,” said Susan.

Susan gets assistance through a Medicaid funded program that’s on the chopping block. If its cut she says it would be devastating for her. “That would be terrifying. I would end up in a nursing home. I would end up a burden on society,” said Susan.

Deborah Quarles is raising her grandkids on her own. She and others get help through Kinship care. Another program slated to be cut in the governor’s budget. “They don’t have the money to feed their grandkids. They don’t have the money to buy them clothes,” said Deborah.

But taxing the rich may not be the best way to fill the budget gap. Some say the last thing this state needs is a new tax. “Taxes are not necessarily good for business expansion,” said Mark Peterson, Greater Rochester Enterprise Interim President.

A new tax could deter new business. “I am concerned about any messaging that says more taxes in New York State is not a positive message. That’s my concern because business already know and we already have a reputation as a high tax state,” said Peterson.

The state is facing a 15 billion dollar deficit. And getting out of the red means tough decisions for state lawmakers. Community leaders in support of the Fair Share Tax Reform plan to go to Albany in March to lobby for the proposed tax. The budget is due April 1st.