Thirty years of growing income inequality, corporate tax cuts and personal tax breaks for the wealthy have undermined the livelihood of working people and set up a state budget crisis which does not need to exist. We present alternative tax proposals and issue a warning of the ominous consequences of privatization, layoffs and state service cuts for all New Yorkers.

1. Dr. Andy Coates Division 231 Public Employees Federation, AFL-CIO Artwork and slide design by PEF Graphic Artist Mario Bruni

2. New York State faces a budget deficit of $10 billion in 2011 ~ 1/13th of a total $132 billion operating budget

3. Public employees are blamed (for a crisis we did not create) Threatened with 9,800 layoffs WHAT’S HAPPENING? WHAT’S HAPPENING? WHAT’S HAPPENING?

4. A major assault upon public education, public health and public safety

5. An offensive against public workers, led by the nation’s Governors and lawmakers, state by state

7. ANTI-UNION LEGISLATION INTRODUCED IN OVER 20 STATES RIGHT-TO-WORK LAWS INTRODUCED IN 14 STATES WISCONSIN AND OHIO HAVE PASSED SWEEPING ANTI-UNION LAWS TEACHERS’ UNIONS TARGETED… States with bills to limit or eliminate collective bargaining for teachers, or otherwise target teachers' unions include Wisconsin, Ohio, Tennessee, Indiana, Nebraska, Texas, New Hampshire, Michigan, Idaho, Massachusetts, Oklahoma, Pennsylvania, Alabama, Florida, Minnesota, Missouri, Utah, Arizona, and others

8. Public employee union members 7.6 million. Private sector union members 7.1 million. Source: “ (Government) workers of the world unite! Public-sector unions have had a good few decades. Has their luck run out?” The Economist , 1/6/11 www.economist.com/node/17849199

9. A major assault upon organized labor, an offensive against all of the unions

10. We need to take our own pulse! Remember the adage: “the best defense is a good offense.” We should ask: Who are they defending?

11. BILLIONAIRES! THE ASSAULT ON THE UNIONS IS REALLY A DEFENSE OF THE BANKERS AND BILLIONAIRES

12. In the universe there are 1,210 billionaires

13. 412 Billionaires in the USA!

14. How many Billionaires in New York? 68!

15. New York IS NOT BROKE! 68 Billionaires in New York

16. The wealthiest New Yorker is no longer Mayor Bloomberg… (he’s now the 2nd wealthiest)… X

17. Today the richest New Yorker is David Koch, worth about $22 Billion!

18. During the heyday of America’s middle class (1950-1980) the top 1% had about 10% of total income. They now take 25%!

19. Top 1% Income Share 1914 to 2006 ^ ^ Eisenhower Reagan Growing income inequality James Parrott, Ph.D., Fiscal Policy Institute, “ Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” http://www.fiscalpolicy.org/FPI_GrowTogetherOrPullFurtherApart_20101213.pdf

20. We have the most unequal income concentration of any state in the nation . New York’s wealthiest 1% get more than 35% of all income in New York State.

21. Income shares and household incomes in New York 1980 compared with 2007 (2007 dollars) Shares of Total Income (AGI) % change 1980 -Top 5% - 22% 2007 - Top 5% - 49% 1980 - Bottom 95% - 78% 2007 - Bottom 95% - 51% James Parrott, Ph.D., Fiscal Policy Institute, “ Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” http://www.fiscalpolicy.org/FPI_GrowTogetherOrPullFurtherApart_20101213.pdf

22. Since 1990, the top 5% have GAINED. THE bottom 95% have LOST.

23. Income shares and household incomes in New York 1980 compared with 2007 (2007 dollars) Average Income (AGI) % change 1980 -Top 1% $446,507 2007 - Top 1% $2,730,973 +511.6% 1980 - Bottom 50% $16,074 2007 - Bottom 50% $14,045 -12.6% James Parrott, Ph.D., Fiscal Policy Institute, “ Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” http://www.fiscalpolicy.org/FPI_GrowTogetherOrPullFurtherApart_20101213.pdf

24. Top 0.01% Income Share 1913 to 2008 “ Striking it Richer:The Evolution of Top Incomes in the United States”Emmanuel Saez, July 17, 2010 http://www.econ.berkeley.edu/~saez/saez-UStopincomes-2008   The eve of the Depression

25. 0.01% of households That’s 1/10,000th! take more than 5% of total income This is UNSUSTAINABLE

26. The Wealthiest 1% (80,000 households) together pull in over $200 billion annually, more than 1/3rd of all income in NY. The state budget deficit is 5% of $200 billion ($10 billion). Source: James Parrott, Ph.D., “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” Dec. 13, 2010, Fiscal Policy Institute

27. Top 1% Income Share 1914 to 2006 ^ ^ Eisenhower Reagan Growing income inequality

28. More income inequality means more health and social problems

29. Productivity and hourly compensation growth, U.S., 1973-2004 Figure 3N from: Mishel, Lawrence, Jared Bernstein, and Sylvia Allegretto, The State of Working America 2006/2007 . An Economic Policy Institute Book. Ithaca, N.Y.: ILR Press (Cornell University), 2007.

31. http://creditwritedowns.files.wordpress.com/2008/10/household-debt-vs-savings.png

32. Why do they say “the recession is over”? Slide courtesy of Mark Brenner, Labor Notes

33. Financiers’ bonuses: billions and billions and billions Slide courtesy Mark Brenner, Labor Notes

34. No such thing as “trickle down!” As the rich have gotten richer and the poor poorer, tax breaks for the wealthy and their corporations have set us up for state fiscal crisis.

35. Corporate taxes have gone down for 75 years Shifting burden off corporations and onto individual taxpayers. Corporate taxes as a percentage of total taxes. Graph courtesy Mark Brenner, Labor Notes

36. “ In 1972, New York State had a personal income tax with 14 brackets, ranging from a low of 2% to a high of 15% New York now has a 5-bracket / 5-rate system. All five of New York's current rates are between 4% (the current lowest rate) and 6.85% (the current highest rate).” Source: Frank Mauro, “A Little Bit of Tax History,” Fiscal Policy Institute http://www.fiscalpolicy.org/taxhistory2.htm

37. Reinstituting the 1972 income tax structure would yield $8 billion more in income tax revenue for New York, while reducing income taxes for 95% of us! http://www.fiscalpolicy.org/taxhistory2.htm

38. Lost revenue: billions & billions & billions NY’s tax-cutting binge from 1994-2000, has lead to the current fiscal crisis. “ Back on Track: Why Progressive Tax Reform is an Essential Part of New York’s Budget Solution,” March 2009, Fiscal Policy Institute http://www.fiscalpolicy.org/CWFandFPI_BackOnTrackPersonalIncomeTaxReform_20090323.pdf

40. If New York’s corporate tax breaks were restored to 2000 levels, the state would have an extra $1.3 billion annually. But, Gov. Cuomo wants $450 million in concessions from public employee unions.

42. Even with the surcharge on wealthy incomes, the richest 1% still pay a smaller percentage in taxes than the rest of us.

43. Janitors and security guards at the Helmsley Building pay a larger share than the building’s residents! Catherine Rampell, "The Little People Pay Taxes," New York Times, February 23, 2011 http://economix.blogs.nytimes.com/2011/02/23/the-little-people-paytaxes/

45. State Payroll Disbursements since 1985 adjusted for Inflation. Payroll disbursements have not grown

46. New York does not have more state employees than other states. NYS has 150.2 state workers for every 10,000 persons living here New York is 31% LOWER than the National Average

47. NYS government agency Full Time Equivalalents (FTEs) dropped 24% since 1988. We have been doing “more with less” for a long time now!

49. Matched for age, gender and education we are NOT better paid than those in the private-sector Jeffrey H. Keefe http://epi.3cdn.net/1c76a91816cb93c747_uum6b5slz.pdf

50. Matched for age, gender and education we are NOT better paid than those in the private-sector Jeffrey Thompson & John Schmitt: " The Wage Penalty for State and Local Government Employees in New England ," September 2010 Political Economy Research Institute, University of Massachusetts and Center for Economic and Policy Research http://www.cepr.net/documents/publications/wage-penalty-2010-05.pdf

51. Matched for age, gender and education we are NOT better paid than those in the private-sector Public vs. private In the public sector, entry-level jobs for those with a high school education, tend to come with benefits and a livable wage. In the private sector, entry level jobs for those coming out of high school tend to be temporary-part time jobs, without benefits and starvation wages. Advanced skills and degrees get you quickly to the wage ceiling in the public sector. In the private sector the sky is the limit. The wage structure of the private sector should emulate the public sector, not the other way around!

53. What’s in the Budget? Public Employee unions would have to make over $1 billion in concessions in SFY 2011-2012 to avoid all layoffs Layoffs dictated by the Budget (at least 1,750 on top of the 9,800 threatened!) will make it more difficult for New York to emerge from the recession.

54. What’s in the Budget? Public Employee unions would have to make over $1 billion in concessions in SFY 2011-2012 to avoid all layoffs The Medicaid and Education aid cuts will result in even more layoffs and in turn an even greater loss of private sector jobs.

55. What’s in the Budget? The Governor has now started layoffs and has threatened up to 9,800 layoffs unless the unions give $450 million in concessions On top of an inadequate total state budget, the Governor demands $450 million in concessions recurring over each of the next four years from New York’s workforce.

56. What’s in the Budget? The Governor has now started layoffs and has threatened up to 9,800 layoffs unless the unions give $450 million in concessions 9,800 state employee layoffs will result in the loss of over $2 billion in economic activity and the loss of a total of 28,000 private sector jobs (two year impact).

57. The state budget is ominous for all New Yorkers, not only public sector union members.

59. It can’t happen in New York? We must defend the Triborough Amendment! 1967 Taylor Law prohibits public employee strikes. Triborough Amendment added to the Taylor Law in 1982 (with the support of the Governor)

60. The Triborough Amendment keeps all aspects of the current contract in force until a new contract is negotiated. Contrary to the propaganda that it gives unions an unfair advantage, the Triborough Amendment in fact establishes a labor-management balance of power and has prevented strikes.

61. We need to take our own pulse! Remember the adage: “the best defense is a good offense.” Our counter-offensive…

63. Alternatives to layoffs and cutbacks: Stock Transfer Tax ($16 billion): A tax of 1/20th of one percent each stock trade, on the books since 1915 but fully rebated to stock traders since 1981. This tax would have brought in $16 billion in 2009 if it wasn’t given back.

64. Alternatives to layoffs and cutbacks: Bankers’ Bonus Tax ($10 billion): $20 billion in bankers’ bonuses in 2009, according to the state Comptroller : one-half of this will balance the state budget!

65. Alternatives to layoffs and cutbacks: More Progressive Income Tax ($8 billion): According to the Fiscal Policy Institute, if New York State went back to the progressive income tax structure of 1972, the state would raise $8 billion more in revenue while giving 95% of New Yorkers a tax cut.

66. At Least: Keep the surcharge! ($5 billion): Higher tax brackets of 7.85% on income between $200,000 and $500,000 and 8.97% on income over $500,000 are set to expire. These temporary tax rates bring in $5 billion a year but Gov. Andrew Cuomo has promised to eliminate them!

67. Dare We Say It? Single payer health care would liberate $25 billion* in health spending in New York State! *(Money now wasted on overhead and profiteering.)

68. And… End the wars! Bring them home now! Cost of the Iraq war alone to New York taxpayers over $47 billion and counting.

69. Organize! Mobilize others! Join in protest! Defend our unions! (and share this data)