“Tax The Rich!” Was the phrase to be remembered when it interrupted New York Governor Andrew Cuomo during the annual dinner with the Association of Black and Puerto Rican Legislators this Sunday night, held in the Albany Convention Center. Although Cuomo had received a warm welcome from the group, it wasn’t until he prepared to address them that he learned of any ill-feelings among the crowd when City Councilman Charles Barron (D-Brooklyn) appeared to be more vocal about his disapproval over the Governor recent budget cuts.
The cuts would be aimed at education and health care spending which would reportedly help bail the state out of its $10 billon deficit. These cuts are imminent due to Cuomo not wanting to extend the state’s Millionaire’s Tax which ends later this year, and many, like Barron, within the crowd would like to see Cuomo extend the tax. And so, Barron seemingly tried to lead a revolt against the proposed cuts and interrupted Cuomo’s speech with chants “Tax the Rich” and “Stop The Cuts” with soon caught on with some other members within the crowd of more that 500 attendees, according to a report made by the Daily News. Cuomo appeared unfazed by the chanting and acknowledge there would be differences of opinion to his proposed cuts. But what would it mean for New Yorkers? What is the benefit of taxing the Millionaires over cutting aid to everyone else?
Proposed back in May of 2010, New York Assembly Speaker Sheldon Silver pitched a plan that would require increasing the taxes of a reported 75-85 thousand New Yorkers who make about $1 million dollars or more a year. This plan has become known as the, Millionaire’s Tax. The plan would increase the current tax upon millionaires another 11% and would supposedly allow the state to save money in order to combat its financial burdens. Silver and Public-employee unions with their legislative allies argue that the continuation of the tax on millionaires would generate $1.25 billion in the next fiscal year and $4.1 billion the year after and would help the state out of its 10 billion dollar deficit.
However, a recent report showed that the targeted Millionaires are not actually millionaires. “They’re often two-income families struggling to maintain a middle-class existence in a high-cost region,” Kathryn Wylde, President and CEO of the Partnership for New York City, said in a statement released with the findings. While supporters find the tax to be the only solution in clearing up the state’s deficit, Cuomo finds the only solution to create a new New York.
To combat New York’s $10 billion deficit, Cuomo aims to eliminate the deficit without raising taxes or borrowing but simply making some cuts. Revealing his 2011-12 budget plans for fiscal 2010, Cuomo aims to reduce year-to-year spending by cutting Medicaid and school spending by $2.85 billion. The cut is expected to be the largest in recent history and will close half of the budget gap’s deficit. The proposed plan begins on April 1st. Cuomo believes that his proposed cuts would help redesign Medicaid so that the state could save billions and improve the quality of care. Meanwhile, local schools would have reserves when the cuts are enforced and the schools could also initiate cuts involving the salaries of some 279 superintendents who are paid more than $200,000 a year.
“New York is at a crossroads, and we must seize this opportunity, make hard choices and set our state on a new path toward prosperity. We simply cannot afford to keep spending at our current rate. Just like New York’s families and businesses have had to do, New York State must face economic reality,” said Governor Cuomo during his budget address. He also hopes that while his proposal may bring change to the state’s spending it can also achieve, “real, year-to-year savings while restructuring the way we manage our state government. This is the first step forward building a new New York.”
While the millionaire tax appears faulty by targeting families and business-owners who are not ideally what we consider millionaires due to a technicality of what they earn in total, and the cuts proposed by Cuomo appear frightening due to limiting the financial resources of an already struggling healthcare and education issue one thing can be said: change is necessary in order to bring new results. According to reports, the state has been manned the same way over the past some odd years.And although things may not get better right away, maybe a change to how the system is using their spending may bring viable results for both rich and poor. All we have to do is try and stay calm and see what will happen before jumping to the conclusion that everything will end with some cutting or taxing being involved.
