What's the Millionaire's Tax Got to Do With It?

What's the Millionaire's Tax Got to Do With It?

Governor Andrew Cuomo once again this week took pains to promise to protect New York's billionaires and millionaires from a small surcharge on the income tax they pay. It would be OK with the Gov. if Obama pushes for a millionaire's tax, but Cuomo said he will watch the back of his wealthy friends here in New York.

The top state tax bracket in New York pays 6.85 percent of income. To enter this bracket and pay the same rate as the millionaires and billionaires a single New Yorker needs to make only $20,001 and a married couple only $40,001 in a year. This means that you and I are in the same income tax bracket as David Koch, Donald Trump, Michael Bloomberg and Sandra Lee.

As a response to the recession of 2008 a temporary surcharge was added in 2009, 2010 and 2011. Two new top tax brackets were created. One was a 7.85% income tax for single people making over $200,000 and married taxpayers making $300,000. The top bracket of 8.97% was added for those with over $500,000 in annual income.

This temporary surcharge will expire at the end of 2011, three quarters of the way through fiscal year 2011-2012. To allow it to expire will mean that New York will have nearly a flat tax on income, far from a fair tax structure.

Even with the income tax surcharge, New York's wealthiest 1 percent pay the smallest taxes as a percentage of total income. The top 1 percent pays 8.4 percent of household income in New York, while the most heavily taxed in our state pay 11.6 percent of income in taxes! The most heavily taxed are those of us in the middle, with household incomes between $33,000 and $56,000 a year.

The Governor's decision to embrace an unjust, upside-down tax policy is vapid enough. What's truly sick is that by defending his millionaires and billionaires from a continuance of this tax in 2012, the Governor will deprive the state of $1 billion in fiscal year 2011-2012 and $5 billion in fiscal year 2012-2013.

$1 billion is more than twice as much money as Cuomo demanded from the public employee unions in contract givebacks!

$5 billion is more than ten times as much money as Cuomo demanded from public employees!

There is absolutely NO fiscal excuse for Cuomo's demand for concessions and NO responsible excuse for his layoffs of New York's public employees. We are middle class public servants who have been unjustly demonized. Now we've been abused by the Governor.

Will protecting a tiny splinter of the wealth of New York's billionaires and millionaires really help launch Cuomo into the White House? Or might sound fiscal policy perhaps do it better? The Governor has made his choice and he has chosen the millionaires.

A NO vote on our contract means that we reject the Governor's lifeless embrace of the old Reagan-Bush-Pataki agenda of tax breaks for the wealthiest.

A NO vote means we are prepared to continue to stand up, to fight for fairness, for ourselves and for all New Yorkers.

Tax the rich. Make them pay their share. NO to givebacks and NO to layoffs!

PROUD Congratulates The PEF Members Who Voted to Reject the First Tentative Agreement (TA) in PEF’s History

You thought for yourselves, stood up to a bully who wants to weaken NYS labor and gave strong encouragement to other NYS bargaining units and the labor movement.

We Voted “No” on the New TA And Urge You To Do The Same.

This TA includes no stronger layoff protection, the same health care increases, the same forced salary reductions this year and next and now eliminates all tuition voucher/reimbursement under Article 15.3 for all four years of the TA. When you evaluate this contract proposal and learn all the facts, we believe you will join us in casting you ballot based on the merits of this TA, not based on the bullying tactics of the Governor who is holding 3,496 PEF members hostage.

All PEF members must unite against the Governor’s bullying. His bullying tactic is layoffs. He is using 3,496 of our PEF brothers and sisters, including PEF leaders, as a bargaining chip to bully over 50,000 PEF members into ratifying a total concessionary TA. His actions include targeting our professional jobs that are supported by federal funds which will not result in a savings to the State. In fact, his actions may violate agreements with the federal government with regard to providing specific services to the citizens of New York and may also put agencies in a position to have to return federally allocated funds. In a 132.5 billion dollar budget, the Governor is willing to destroy the lives of 3,496 PEF members, their families and communities to realize 75 million in savings.

While some of our members and leaders believe that we have to give him anything he wants, we agree with members and leaders who say we must not allow him to terrorize our Union. Budget solutions are many and none of them involve layoffs. Two major solutions the Governor can implement immediately are to eliminate wasteful State contracts and to reverse course on his decision to reduce State tax revenue by lowering the tax rate on the wealthiest New Yorkers.

Instead of acting on these common sense solutions, the Governor has ordered the layoff of 3,496 professional, scientific and technical public employees at a time when he should be ensuring job retention and economic growth in our State. The number one issue facing our Country is JOBS, JOBS, JOBS!

Ratifying this new TA is not in the interest of the public and private sector unions of New York and elsewhere. It’s not in the interest of a viable middle class and it’s definitely not in the interest of the 99 percent of New Yorkers who work for a living. How we fare as a union in the future may depend on the decision we collectively make on this TA.

We urge you to separate the two issues- a fair contract and unnecessary layoffs. The PEF administration has been urged by many members to pursue legal action to stop the layoffs. PEF has not even tried to do so, nor have they implemented any other strategy to fight for our jobs.

We believe that when you read and consider this contract proposal carefully, and prepare to vote on the merits of the contract, you will conclude that this tentative agreement is, once again, not in the best interests of our union’s members or PEF’s future.

LABOR DONATED BY PROUD --
PROFESSIONALS RECLAIMING OUR UNION DECISIONS

New York State is not an employee-owned company!

The following comment appeared today as a letter to the editor in the Albany Times Union newspaper:

New York State is not an employee-owned company. State employees don't have any authority to hire, fire or lay off other state employees. The only way state employees fund themselves and their coworkers is as taxpayers. They have no control over the revenue decisions made by the governor and the Legislature.

The press, some editorials and some letters to the editor are doing PEF members who voted against the tentative contract a great injustice by implying that if there are layoffs, they are at fault. The implication puts the blame for layoffs on the wrong party.

It is clear from the "management rights" clause of every union contract that it is the governor who, limited only by the Civil Service Law and other laws, has the authority over the workforce listed in that clause.

Similarly, any state employee whom the governor lays off is mistaken to direct his or her frustration, disappointment and anger at fellow PEF members who voted against the tentative agreement in the belief that whatever layoff decisions the governor makes at any time should not be blamed on anyone but the governor and the Legislature's budgetary decisions.

From the list of agencies targeted for layoffs, one might question whether the governor has been in office long enough to appreciate the mission, purposes, objectives and policies of his responsibilities as governor or the talented civil servants who implement them even when the political process becomes dysfunctional.

Charles Klaer
Altamont

PEF Members Stand Together

[We found the following anonymous comment at the Times Union "Capitol Confidential" blog. We agree! And we hope the leadership of PEF takes up the ideas this "proud PEF member" outlines here in the final paragraph. Please share this post.]

PEF Members Stand Together
September 27, 2011, 5:26 PM

As a proud PEF member, I am very happy with the outcome of our vote today. We sent a strong message to Governor Cuomo rejecting his bullying techniques.

Of course, we don’t expect a better contract tomorrow. We will patiently wait until things cool down. And while we wait, we all need to stand together to face whatever reactions the Governor chooses to do.

The people who berate PEF members for voting “NO” on this terrible contract proposal are sadly misguided. They have convinced themselves that we did this out of greed. In my view, they are absolutely wrong.

We voted “NO” because the governor refused to consider alternate solutions. He refused to make millionaires pay their fair share. He refused to limit contracting out, which is a huge fiscal waste. He refused to consider a stock transfer tax. And he refused to adjust the regressive tax structure of NYS. He seemed to want to punish state workers, who had no part in creating this fiscal nightmare we are all in, but who were being asked (with repeated threats) to pay a grossly disproportionate share of the pain in fixing it.

Only the Governor has the power to terminate or furlough employees. There are always alternatives for raising needed revenue. The Governor can choose to lay off employees, but he does not have to. I would suggest that people should place the blame where it properly rests.

Just today, in fact, the Governor proudly announced that NYS was giving $400 Million to high tech companies who are participating in Albany’s Nanotech Center. How hypocritical is that? High tech firms are getting tax breaks while state workers are getting laid off…

Let’s remember that the next time NYS faces another calamity. There are an awful lot of state workers who responded to the recent floods who are now threatened with layoffs. And let’s never forget that there were hundreds of PEF employees who rushed into the World Trade Center to help with the evacuation on 9/11, many of whom did not survive. From nurses to engineers to corrections officers, PEF members make a big difference to New York State, and all are better off for the work that PEF does.

If the Governor holds firm to his prior threats to lay of PEF members, I would ask all of my Union brothers and sisters to stand together. We need to form networks to help anyone who is laid off. We need to contribute to anyone who suffers as a result of the Governor’s petulence. We need to be bigger than the self-serving bums that many on this blog seem to think we are. PEF’s leadership and agency rep’s need to take the lead on this and to get out ahead of this issue right now. Let’s set up emergency response teams and communications networks, to identify exactly what is going on, who is affected, and what they need in terms of help. This is an all-hands effort, and everyone needs to participate, just as much as if the floods hit your neighborhood. PEF members are our family. It’s time we acted that way.

I REJECT THE CONTRACT

4 handouts to print and share with others

(Links to pdf versions.)

1. Calling all PEF Members

2. Why I Voted "NO"

3. No Layoffs????? Think Again!!!

4. QUESTIONS & ANSWERS based upon discussions at contract meetings around the state.

QUESTIONS & ANSWERS based upon the contract forums around the state

Please consider these before you vote!
Link to leaflet version of this document here.

Q: Many seem resigned to the idea that this is “the best we can do.” They cite the poor economy, that the Democrats have joined the Republicans to embrace austerity measures across the nation, or they say “the Governor is such a bully. But sometimes you just have to run away and hope to fight another day.” What do you say?

A: Consider the recent fight back campaign by the Communication Workers of America (CWA) against Verizon. Their members were vocal and stood strong and united and have succeeded in getting Verizon back to the bargaining table. We can have that same opportunity by voting no to go back to negotiate with the State. We will never be treated with respect if we don’t speak up for ourselves.

Q: But how bad has the bullying really been? Didn’t PEF endorse Cuomo for Governor and doesn’t that count for something?

A: True, the Governor negotiated in bad faith. He extended one hand to demand $450 million in recurring annual givebacks by public employees while he put up his other hand to protect New York’s millionaires from paying their share of taxes. But it was worse than that. At a contract forum meeting in Albany led by the Contract Team Chair, a PEF Vice President, it was revealed that two PEF officers and a PEF staff member were threatened with targeted layoffs. (PEF’s Secretary Treasurer confirmed this report.) The implications are alarming – for everyone involved.

Q: If PEF members don’t approve the contract, some say we will be blamed for any future layoffs. If we approve the contract then, at least, the coming layoffs will sit in the Governor’s lap. If you look at it this way, why vote “No”?

A: A layoff is a layoff is a layoff. It doesn’t matter if you’re a “round 1 targeted layoff,” or a “programmatic layoff,” or a SAGE Commission layoff, or just the innocent victim of a bully. Every layoff is the Governor’s. Our Union must fight to protect every member at all times from layoffs. Our position is NO LAYOFFS! PEF members are not responsible for the decisions that management makes with respect to the deployment of the workforce. A “No” vote is a vote to return to the bargaining table, nothing more.

In addition, the austerity measures lack justification. Layoffs spell a reverse economic stimulus, worsening unemployment. Public sector layoffs cause private sector layoffs. Also, public service has been downsized for decades while privatization of public services, at a much greater cost to taxpayers, has expanded. Plus, the wealthy and the corporations have enjoyed 30 years of successive tax breaks, shifting taxes to the middle class and the poor.

Q: Why are the PEF contract team meetings so demoralizing? What can we really do?

A: PEF members should vote on the merit of the proposals contained in the contract. It is not surprising that the contract team members can’t point out reasons to vote for an agreement based on threats and intimidation. The contract is full of givebacks and concessions and inserts language that sanctions layoffs for any reason other than the $450 million gap identified by the Governor when the budget was passed in April 2011. And even though we can see that the contract team is doing the best that it can, they were forced to negotiate against their own interests. They evidently saw no alternatives. Asserting this is “the best we can do” can not change the fact that this contract, if passed, will set dangerous precedents in givebacks, retirement benefits and layoffs. Vote on the merits of the contract! Act not from weakness and demoralization, but from strength and courage: we can only win respect if we stand up together and make each of our voices heard.

Q: Are furloughs now a reality in the lives of union public employees across the country? Have we opened ourselves up to additional furlough days (even in between contracts) now that furloughs have been introduced as an article in our contract?

A: “Furloughs” are a simply a clever pay cut. The work still has to get done. For the employer, at best, “furloughs” amount to a work speed-up. But at worst, the money the State spends to allow “furloughs” will end up costing the State even more. In the facilities that run 24-7, for example, covering furlough days will require paying overtime. But there is more. “Furloughs” are a dangerous precedent. Similar to what happened in prior contracts, when PEF agreed to move steps to reach top of grade from 3 to 5 to 7, the State will most likely seek increases in the number of furlough days in future contracts. Also, Article 21 (Deficit Reduction Leave/Workforce Reduction Limitation) is a new Article in the contract which now makes the discussion of furlough days a mandatory subject of bargaining in the next contract if this proposal is approved. We have no evidence to support the need for furloughs. Negotiations should include a good faith effort from the State to explore the cost cutting measures PEF provided in PEF’s Fact Sheets on the PEF website at www.pef.org. It is time for public employees to say NO FURLOUGHS!

Q: Will PEF members lose any benefits if the contract is defeated?

A: If PEF members reject the contract, we will maintain our current contract and the benefits in the 2007-2011 contract. This should protect us from the substantial losses we will suffer if the proposed contract ratifies.

Q: Doesn’t the state budget require givebacks and a 5-year contract?

A: New York State faced a $10 billion deficit at the start of 2011. The Governor used this to demand, through budget assumptions, that public employee union members owe givebacks totaling $450 million, recurring annually, so-called “workforce savings.” Now the state budget deficit is about $2 billion. Yet the Governor has not reduced his demand for “workforce savings.” If the Governor really thought the union members’ “share” of the deficit were less than 1/20th of the total, he would be now seeking under $100 million in givebacks.

PEF members have shared many ways in which the State can save money without reverting to layoffs. For example, this past year, the Tax department collected $600 million more than was budgeted. That amount alone can cover the Governor’s invention of “expected workforce savings.” And there is no reason for us to agree to 5 years, particularly an agreement that ignores cost of living increases. If the falling buying power of the dollar is considered, a “zero increase” is really a pay cut.

Q: Shouldn’t PEF members accept the contract since CSEA members have already agreed to essentially the same proposal?

A: The negative fiscal impact of this contract proposal is greater for PEF members than CSEA members. Two-thirds of CSEA members are below a grade 10 and thus are less impacted by the health care proposals. And yes, it is further distressing to think that the actions of CSEA seemed designed to leave PEF out in the cold. But to those who complain about how lonely we will feel if only PEF stands up to the Governor, we reply: no one will stand up with you if you won’t stand up for yourself!

Link to leaflet version of this document here.