Transcript NYS Personal Income Tax (PIT) Reform A Progressive Code to Stimulate the Economy & Provide Relief for Working & Middle- Income New Yorkers Senator.

NYS Personal Income Tax
(PIT) Reform
A Progressive Code to Stimulate the Economy &
Provide Relief for Working & Middle- Income New Yorkers
Senator Jeffrey D. Klein
Deputy Majority Leader
34th Senate District
February 2009
Senator Jeffrey D. Klein
Deputy Majority Leader, New York State Senate
Prepared By:
Alex Camarda
Office of Senator Jeffrey D. Klein
We welcome feedback on our reports. Please contact Alex Camarda, Policy Director, at 718-822-2049 to provide your thoughts on this
report or discuss collaboration on implementing its initiatives. Special thanks to Art Friedson and the NYS Dept. of Taxation and Finance
for their invaluable assistance with this report.
2
Dear Reader:
2009 finds many New Yorkers encountering the most difficult economic challenges of their lifetimes. What began
as a crisis in mortgage securities on Wall Street is now significantly impacting Main Street. 145,000 New Yorkers
have lost their jobs in the last year. 50,000 homeowners experienced foreclosure in 2008. Unfortunately, the
immediate future looks no better. Tens of thousands more New Yorkers will lose their homes. Unemployment in
New York City will likely surge to over 8 percent, and will hit double digits for minority workers.
The severe recession has also had a profound impact on state and local budgets. Because governments are
required to balance their budgets by law, spending cuts and regressive fees have been proposed to make sure
the books are balanced. These spending cuts and fees not only downsize or eliminate important programs in
health care, education, and other areas- they cause the economy to contract even more, creating a vicious
downward spiral that could send the economy plummeting further.
That’s why I’m proposing reform to the state personal income tax (PIT). My proposal will cut taxes for most New
Yorkers making less than $250,000 a year. For example, a married couple making 100K will receive over a tax
cut of over $1000 dollars under my proposal. With New Yorkers tightening their belts during this fiscal downturn,
it’s essential we put money back in people’s pockets so they can meet their bills and buy essential items. Tax
relief will also boost consumer spending, help small businesses, and stimulate the economy.
In addition to tax relief for middle-class New Yorkers, my proposal will generate an additional $1 billion to reduce
spending cuts to vital programs and the need for onerous fees on everything from Ipod downloads to movie
tickets. The revenues for my proposal are generated by increasing taxes on the most fortunate and wealthy New
Yorkers. It is appropriate that the wealthiest pay a bit more during this difficult economic time, given that they
experienced a tremendous gain in wealth over the last three decades and have traditionally paid much more of
their income in state taxes.
Regards,
Jeffrey D. Klein
Deputy Majority Leader
New York State Senate
34th District
3
Index
Section 1: The Current Economic Crisis
Section 2: The Economic Crisis’ Impact on
State & Local Government Budgets
Section 3: New York State’s Existing
Personal Income Tax
Section 4: Senator Klein’s Personal Income
Tax Reform
4
SECTION 1:
The Current Economic Crisis
5
Collapse of the
Financial Sector
•
•
It is well-established that the United States is experiencing the most
severe economic downturn in decades.
The recession rooted in the subprime mortgage crisis and subsequent
credit crunch has acutely affected New York, the nation’s commercial
capital:
•
The implosion of the capital markets dramatically resulted in the
elimination of investment banks, as Bear Stearns and Lehman
Brothers went under, Merrill Lynch was acquired, and Goldman
Sachs and Morgan Stanley changed their status. 1
•
•
Private sector financial employment dropped 13 percent in NYC
from October 2007 to October 2008. A job lost in the financial
sector results in two more jobs lost in other industries in NYC and
1.3 jobs lost elsewhere in NYS. 2
Wall Street bonuses declined 44 percent to $18.4 billion from last
year’s $32.9 billion, according to the state Comptroller. 3 Taxes on
income from Wall Street provides 12 percent of all city tax
revenues, and 20 percent of all state revenues. 4
6
The Recession’s Impact on
New Yorkers
•
The recession has moved beyond its origins on Wall Street to impact
New Yorkers on Main Street:
•
Unemployment in NYS increased by 145,300 (to 6.1 percent from
4.6 percent) from November 2007 to November 2008. 5
•
First-time unemployment claims in NYC rose 40 percent
(comparing late August-late November 2008 with the same period
last year). 6 Over one million New Yorkers statewide filed
unemployment claims in 2008. 7
•
Approximately 50,000 homes were foreclosed statewide in 2008. 8
NYC accounted for about 20,000 foreclosures. 9
•
Home prices in NYC dropped 7.5 percent between October 2007
and October 2008. 10
•
According to a Siena Research Institute poll on consumer
confidence, a record 61 percent of New Yorkers say they are worse
off today than a year ago. 11
7
The Immediate Future
is Bleak
•
•
•
•
•
The Fiscal Policy Institute estimates that the city unemployment will
rise to 8.5 percent by the end of 2009 from its current level of 5.7
percent. 12 For African-Americans and Hispanics, it projects a 14 and
10 percent unemployment rate, respectively, in 2009. 13
State Comptroller Thomas DiNapoli believes 225,000 jobs will be lost
statewide in the next two years. 14
Home prices statewide are projected to fall an additional 13 percent
during 2009. 13 According to the Center for Responsible Lending,
foreclosures in New York will total 122,192 for 2008-2009. 14
Consumer spending also shows “little sign of improvement”, according
to a Siena Institute Research poll, with purchasing plans for major
expenditures like home improvements and cars down 25 percent from
last year. 15
Local consumer attitudes were reflected in national holiday retail
spending. Penny-pinching resulted in a 2.2 percent year-to-year
decline in retail sales at chain stores open at least a year, the worst
downturn since 1970. 16
8
SECTION 2:
The Economic Crisis’ Impact on
State & Local Government Budgets
9
Recession Has Contributed to
State & City Budget Deficits
•
As a result of unemployment, the decline in tax
revenues from Wall Street, falling home prices and
consumer spending, among other economic factors,
the state and city are facing large budget deficits.
• The Governor projects a state budget deficit of
$15 billion in fiscal year 2009, and $47 billion
over 4 years. 17
• The New York City forecast is similarly dismal,
with the Independent Budget Office predicting a
$4.3 billion budget gap in fiscal year 2010
(beginning July 1st) and nearly $7 billion in fiscal
year 2011. 18
10
Balancing Budgets Results in
Spending Cuts & Tax/Fee Increases
•
The state and city (and other localities) are required by law
to balance their budgets. Consequently, they are largely
forced to take actions that cut spending and raise taxes and
fees.
•
•
Governor Paterson’s proposed budget cuts education
spending 3.3 percent ($698 million), reduces the growth in
spending on health care by 12 percent, or $1.3 billion,
(including $700 million reduction for hospitals and $400
million for nursing homes) while raising $4.1 billion by
creating 88 fees on items ranging from Ipod downloads to
movie tickets to haircuts. 19
Mayor Bloomberg’s recently ordered agency heads to cut
spending 7 percent in their budgets for FY2010, in addition
to proposing $800 million in tax and fee increases. 20
11
Spending Cuts & Tax/Fee Increases
Contract the Economy Further
•
It is widely believed by economists and public policy experts that
cutting spending and raising taxes in a recession only deepens the
economic contraction.
•
•
•
“When the state enters a recession, revenue naturally falls and
expenditures rise. The balanced budget rules then force the state to
reduce spending, raise taxes, or some combination thereof, which is
counter-productive since it exacerbates the economic slowdown.” 21
-Joseph Stiglitz, Nobel Prize Winner in Economics and Columbia
University Professor
“Spending cuts and tax increases can further slow a state’s economy
during a downturn and contribute to the further slowing of the national
economy, as well.” 22
-Center on Budget and Policy Priorities
“States and localities must…balance our budgets every year leaving us
no choice but to make difficult decisions that help undo national efforts
to stimulate the economy.” 23
–Nassau County Executive Tom Suozzi
12
The Solution:
Personal Income Tax Rate Reform
•
•
•
•
To counter state and local government actions that, while
balance the budget, undermine economic growth, Senator
Klein proposes reform to the state’s personal income
tax.
Klein’s reforms would reduce taxes for New Yorkers
making up to $250,000 a year who claim the standard
deduction in filing their return.
This will provide financial relief for working and middleincome New Yorkers during these difficult economic
times.
It will also stimulate the economy by putting money into
the hands of New Yorkers to spend, thereby increasing
consumer demand and helping businesses with lagging
sales.
13
SECTION 3:
Existing New York State
Personal Income Tax Rates
14
Existing New York Personal
Income Tax (PIT) Rates
2008 NYS Personal Income Tax Rates
2008 NYS Personal Income Tax RatesJoint Returns & Resident Surviving Spouses
Start
End
Tax Rate
$
16,000
4%
$
16,000 $
22,000
4.50%
$
22,000 $
26,000
5.25%
$
26,000 $
40,000
5.90%
$
40,000
6.85%
Source: NYS Tax Law, Article 22, Section 601
Phase in 6.85% supplemental tax at 100-150K
$
$
$
$
2008 NYS Personal Income Tax RatesHeads of Household
Start
End
Tax Rate
$
11,000
4%
11,000 $
15,000
4.50%
15,000 $
17,000
5.25%
17,000 $
30,000
5.90%
30,000
6.85%
Phase in 6.85% supplemental tax at 100-150K
2008 NYS Personal Income Tax RatesUnmarried Individuals, Married Filing Separately
Start
End
Tax Rate
$
8,000
4%
$
8,000 $
11,000
4.50%
$
11,000 $
13,000
5.25%
$
13,000 $
20,000
5.90%
$
20,000
6.85%
Phase in 6.85% supplemental tax at 100-150K
• There are three different classes of tax filers in New York State, depending on one’s
marital/family status. Income is taxed differently for each class of filers.
• Income is taxed for all filers at 4 to 6.85 percent income, depending on the amount
earned.
• For example, a single individual earning $50,000 a year would have their first
$8,000 earned taxed at 4 percent, the amount between $8,000 and $11,000
taxed at 4.5 percent, the amount between $11,000 and $13,000 taxed at 5.25
percent, the amount between $13,000 and $20,000 at 5.9 percent, and the
amount above $20,000 at the highest rate, 6.85 percent.*
*= Filers may be eligible for a variety of deductions, exemptions, and credits that reduce their tax burden.
15
The Current PIT Marginal Rates
Are Not Very Progressive
•
Currently, NYS Personal Income Tax rate
structure is not very progressive.
•
An individual earning just over $20,000 a
year would pay the same marginal tax rate
(6.85 percent) on their last dollar earned as
a millionaire would (6.85 percent). A
married couple filing jointly earning just
over $40,000 a year would be taxed at the
same marginal rate (6.85 percent) on their
last dollar earned as a couple making $10
million.
16
The New York PIT Rates Were
Much More Progressive in the Past
•
•
The state income tax was once much more
progressive, with very wealthy New Yorkers
paying a much greater proportion of their income
in taxes than middle-class taxpayers. 24
In 1972, New York State had a PIT with 14
different brackets ranging from 2 percent to 15
percent. Since then, changes to the income tax
have gradually made the personal income tax
flatter, ultimately resulting in today’s narrow rate
range of 4-6.85 percent. This movement toward
a regressive income tax has benefited wealthy
New Yorkers. 25
17
Federal Taxes Have Also
Become More Regressive
• While the New York PIT tax

code has become flatter, federal
taxes on income, as well as
other forms of wealth, have
become less progressive as
well. 26
• Before the 1980s, the
wealthiest .01 percent of
taxpayers paid a total
federal tax rate of more
than 60 percent. By 2004,
they paid under 40 percent.
27
18
Income Inequality
Has Also Increased
•
While the wealthiest New Yorkers have paid less of their
income and other forms of wealth in federal and state taxes
over the last three decades, the income of the wealthiest
has skyrocketed. Consequently, income inequality has
widened dramatically.
• In 1977, the median family income in the United States
(adjusted for inflation) was $47,400. In 2005, it
increased to $58,400. Meanwhile, the wealthiest .01
percent saw their incomes rise to $10 million in 2005
from $2 million in 1977 (adjusted for inflation). 28
• In 1975, the top 1 percent of income earners in the U.S.
made 8 percent of all income earned. In 2005, the top
1 percent made 19 percent of all income earned- 11
percent more than 30 years earlier. 29
19
SECTION 4:
Senator Klein’s Personal
Income Tax Reform
20
Klein’s PIT ProposalKey Elements
•
•
Raises taxes on wealthier New Yorkers while
providing tax breaks to middle and working class
residents.
• Reduces taxes for New Yorkers making up to
$250,000 a year who claim the standard deduction in
filing their return.
• Tax increases for those making more than $250,000,
with rates increasing from 6.85 to 8.97 percent for
millionaires and 10.3 percent for income above $3
million.
The proposal would also produce $1 billion in
additional savings beyond tax cuts that could be
applied to the budget deficit.
21
Klein’s PIT Proposal
•
•
•
Klein’s proposal would add tax brackets to the current income tax
structure, making it more progressive. Rates would range from 4 to
10.3 percent depending on income and filing status (see next few slides,
#23-#25) rather than the current, flatter structure of 4 to 6.85 percent (see
slide #15).
A tax cut would be provided through increasing the standard
deduction. The standard deduction is a dollar amount that is deducted
from one’s income and not taxed. The larger the standard deduction, the
less one pays in taxes. For example, a taxpayer who is single and not a
dependent making $50,000 a year currently receives a standard deduction
of $7,500. This means they are taxed on $42,500 of their income rather
than $50,000, thereby lowering their taxable income.
Klein’s proposal would double the standard deduction for every type
of tax filer. In our example above, the standard deduction would increase
from $7,500 to $15,000. The taxpayer in our example would be taxed on
$35,000 of their income rather than $42,500, thereby achieving a tax cut
by not paying taxes on $7,500 that they pay taxes on today.
22
Tax Brackets & Rates for Klein’s ProposalMarried & Filing Joint Returns &
Resident Surviving Spouses
Klein Proposal
2008 NY Personal Income Tax RatesJoint Returns & Resident Surviving
Spouses
Start
$
16,000
$
22,000
$
26,000
$
40,000
$ 250,000
$ 500,000
$ 1,000,000
$ 3,000,000
$
$
$
$
$
$
$
$
End
Tax Rate
16,000
4%
22,000 4.50%
26,000 5.25%
40,000 5.90%
250,000 6.85%
500,000 7.25%
1,000,000 7.70%
3,000,000 8.97%
10.30%
The Tax Is:
$
640
$
640
$
910
$ 1,120
$ 1,946
$ 16,331
$ 34,456
$ 72,956
$ 252,356
plus 4.5% excess over 16K
plus 5.25% excess over 22K
plus 5.9% excess over 26K
plus 6.85% excess over 40K
plus 7.25% excess over 250K
plus 7.7% excess over 500K
plus 8.97% excess over 1M
plus 10.3% excess over $3M
Phase in 6.85% supplemental tax at 150-200K
Phase in 7.25% supplemental tax at 250-300K
Phase in 7.7% supplemental tax at 500-550K
Phase in 8.97% supplemental tax at 1m- 1.05m
Note: The supplemental tax recaptures taxes paid on income falling in the lower
brackets, and taxes it at a higher rate. For example, a married couple filing jointly
pays between 4 and 5.9 percent on their first $40K of income. If they make $200K
in total income, that initial $40K would be taxed at the higher rate of 6.85 percent
rather than a graduated rate between 4 and 5.9 percent. Their entire income is
therefore taxed at 6.85 percent, rather than the initial 40K being taxed at a lower
rate.
Current
Standard
Deduction
Single (and can be claimed
as a dependent on another
taxpayer’s federal return)
Single (and cannot be
claimed as a dependent on
another taxpayer’s federal
return)
Married filing joint return
Married filing separate
return
Head of household (with
qualifying person)
Qualifying widow(er) with
dependent child
Klein
ProposalStandard
Deduction
$
3,000
$
6,000
$
$
7,500
15,000
$
$
15,000
30,000
$
7,500
$
15,000
$
10,500
$
21,000
$
15,000
$
30,000
23
Tax Brackets & Rates for Klein’s ProposalHeads of Household
Klein Proposal
2008 NY Personal Income Tax RatesHeads of Household
Start
$
11,000
$
15,000
$
17,000
$
30,000
$ 250,000
$ 500,000
$ 1,000,000
$ 3,000,000
$
$
$
$
$
$
$
$
End
Tax Rate
11,000
4%
15,000 4.50%
17,000 5.25%
30,000 5.90%
250,000 6.85%
500,000 7.25%
1,000,000 7.70%
3,000,000 8.97%
10.30%
The Tax Is:
$
440
$
440
$
620
$
725
$ 1,492
$ 16,562
$ 34,687
$ 73,187
$ 252,587
plus 4.5% excess over 11K
plus 5.25% excess over 15K
plus 5.9% excess over 17K
plus 6.85% excess over 30K
plus 7.25% excess over 250K
plus 7.7% excess over 500K
plus 8.97% excess over 1M
plus 10.3% excess over $3M
Phase in 6.85% supplemental tax at 150-200K
Phase in 7.25% supplemental tax at 250-300K
Phase in 7.7% supplemental tax at 500-550K
Phase in 8.97% supplemental tax at 1m- 1.05m
Note: The supplemental tax recaptures taxes paid on income falling in the lower
brackets, and taxes it at a higher rate. For example, a married couple filing jointly
pays between 4 and 5.9 percent on their first $40K of income. If they make $200K
in total income, that initial $40K would be taxed at the higher rate of 6.85 percent
rather than a graduated rate between 4 and 5.9 percent. Their entire income is
therefore taxed at 6.85 percent, rather than the initial 40K being taxed at a lower
rate.
Current
Standard
Deduction
Single (and can be claimed
as a dependent on another
taxpayer’s federal return)
Single (and cannot be
claimed as a dependent on
another taxpayer’s federal
return)
Married filing joint return
Married filing separate
return
Head of household (with
qualifying person)
Qualifying widow(er) with
dependent child
Klein
ProposalStandard
Deduction
$
3,000
$
6,000
$
$
7,500
15,000
$
$
15,000
30,000
$
7,500
$
15,000
$
10,500
$
21,000
$
15,000
$
30,000
24
Tax Brackets & Rates for Klein’s ProposalUnmarried Individuals &
Married Filing Separately
Klein Proposal
2008 NY Personal Income Tax RatesUnmarried Individuals, Married Filing
Separately
Start
$
8,000
$
11,000
$
13,000
$
20,000
$ 250,000
$ 500,000
$ 1,000,000
$ 3,000,000
$
$
$
$
$
$
$
$
End
Tax Rate
8,000
4%
11,000 4.50%
13,000 5.25%
20,000 5.90%
250,000 6.85%
500,000 7.25%
1,000,000 7.70%
3,000,000 8.97%
10.30%
The Tax Is:
$
320
$
320
$
455
$
560
$
973
$ 16,728
$ 34,853
$ 73,353
$ 252,753
plus 4.5% excess over 8K
plus 5.25% excess over 11K
plus 5.9% excess over 13K
plus 6.85% excess over 20K
plus 7.25% excess over 250K
plus 7.7% excess over 500K
plus 8.97% excess over 1M
plus 10.3% excess over $3M
Phase in 6.85% supplemental tax at 150-200K
Phase in 7.25% supplemental tax at 250-300K
Phase in 7.7% supplemental tax at 500-550K
Phase in 8.97% supplemental tax at 1m- 1.05m
Note: The supplemental tax recaptures taxes paid on income falling in the lower
brackets, and taxes it at a higher rate. For example, a married couple filing jointly
pays between 4 and 5.9 percent on their first $40K of income. If they make $200K
in total income, that initial $40K would be taxed at the higher rate of 6.85 percent
rather than a graduated rate between 4 and 5.9 percent. Their entire income is
therefore taxed at 6.85 percent, rather than the initial 40K being taxed at a lower
rate.
Current
Standard
Deduction
Single (and can be claimed
as a dependent on another
taxpayer’s federal return)
Single (and cannot be
claimed as a dependent on
another taxpayer’s federal
return)
Married filing joint return
Married filing separate
return
Head of household (with
qualifying person)
Qualifying widow(er) with
dependent child
Klein
ProposalStandard
Deduction
$
3,000
$
6,000
$
$
7,500
15,000
$
$
15,000
30,000
$
7,500
$
15,000
$
10,500
$
21,000
$
15,000
$
30,000
25
Klein’s PIT ProposalImpact on Sample Taxpayers
•
•
Klein’s proposal would give a tax cut to filers making up to $250K in
income and claiming a standard deduction. Those making above $250K
would see an increase in their taxes.
Klein’s proposal would also produce $1 billion dollars beyond the tax cut
in revenues to the state to fill budget gaps.
Personal Income Tax Reform- Impact on Sample Taxpayers
Married Couple
Married Couple Married Couple
Married Filing
Married Filing Single Person. Single Parent Retired Senior. Single Person.
Filing Jointly. 2
Filing Jointly. 0 Filing Jointly. 2
AGI 150K. with 3 Kids. AGI
AGI 600K.
Jointly with 2
Jointly with 2
AGI 30K.
Kids. AGI 200K
Kids. AGI 1M Kids. AGI 3M
Kids. AGI 100K.
Kids. AGI 65K.
25K.
Difference from
Current Taxes
$1,165
CUT
$1,165
CUT
$980
CUT
$910
CUT
$580
CUT
$466
CUT
$4,459
INCREASE
$7,218
INCREASE
$61,758
INCREASE
Notes:
• AGI= Adjusted Gross Income
• Tax cuts and increases are determined by comparing Klein's proposal to current income tax rates. All projections for tax filers assumed the same credits or deductions would be claimed, with
the exception that all filers would claim the standard deduction. The earned income tax credit, a frequently used tax credit by low-income individuals, would likely be larger than a tax cut under
Klein's proposal. Wealthy homeowners would likely see less of an overall increase in taxes, because their larger state tax can be deducted from their federal income tax payments. All numbers
include appropriate supplemental taxes.
26
Klein’s PIT ProposalDistributing the Tax Cut Through
Debit Cards
•
•
•
•
Rather than having the Dept. of Taxation and Finance alter their
withholding tables to reflect the doubling of the standard deduction,
Klein’s proposal calls on the Dept. to aggregate the tax cuts for tax
filers based on their 2008 returns.
Lump sum tax cuts should be distributed to eligible recipients by Tax &
Finance via a debit card, as is done for unemployment benefits by the
NYS Dept. of Labor and for food stamps by the NYS Office of
Temporary and Disability Insurance.
Recipients will be able to use the debit card as they would a
department store gift card- solely for spending, thereby stimulating the
economy. The cards will have an expiration date in 2009, as
determined by the Dept. of Taxation and Finance, with unspent money
reverting back to the state.
The Department of Taxation and Finance shall have discretion over
establishing policies related to the distribution and use of the debit
cards, provided tax cuts are used exclusively for spending in 2009.
27
ENDNOTES
1.
Suzy Jagger, “End of the Wall Street investment bank,” TimesOnline, September 22, 2008.
2.
BALCONY Business and Labor Coalition of New York, “DiNapoli Report: Wall Street’s Transformation Will Lead to Lower Tax
Revenues;
Continued Job Losses,” [http://www.balconynewyork.com/2008/11/24/dinapoli-report-wall-street%E2%80%99s-transformation-willlead-to-lower-tax-revenues-continued-job-losses/], accessed January 7, 2009.
3.
Helen Kennedy, “City takes hit as Wall Street bonuses cut,” Daily News, January 29, 2009.
4.
Ibid.
5.
Representative Carolyn B. Maloney, “New York State Unemployment Spikes to 6.1 percent,”
[http://maloney.house.gov/index.php?option=content&task=view&id=1753&Itemid=61], accessed January 7, 2009.
6.
Patrick McGeehan, “Job Losses in City Reach Up Ladder,” The New York Times, December 12, 2008.
7.
Representative Carolyn B. Maloney, “New York State Unemployment Spikes to 6.1 percent,”
[http://maloney.house.gov/index.php?option=content&task=view&id=1753&Itemid=61], accessed January 7, 2009.
8.
“New York state foreclosures may top 50,000 in 2008,” Reuters, November 20, 2008.
9.
Office of the Mayor, “Mayor Bloomberg and Speaker Quinn Join the Center for NYC Neighborhoods to Award New Grants to Help
Prevent Mortgage Foreclosures,”
[http://www.nyc.gov/portal/site/nycgov/menuitem.b270a4a1d51bb3017bce0ed101c789a0/index.jsp?doc_name=/html/om/html/recent_
events.html ], accessed January 7, 2009.
10.
Jack Healy, “Home Prices Fell at Their Sharpest Pace in October,” The New York Times, December 31, 2008.
11.
Damian Ghigliotty, “NY Consumer Confidence Rebounds,” Crain’s New York Business.com,
[http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20081205/FREE/812059979/0/], accessed January 7, 2009.
12.
Daniel Massey, “New York Comptroller Raises Job-Loss Estimate,” Workforce Management,
[http://www.workforce.com/section/00/article/26/02/88_printer.php], accessed January 7, 2009.
13.
Ibid.
28
ENDNOTES
14.
Syracuse.com, “Comptroller: Expect massive job losses across New York state,”
[http://blog.syracuse.com/news/2008/11/comptroller_expect_massive_job/print.hml], accessed January 7, 2009.
15.
Damian Ghigliotty, “NY Consumer Confidence Rebounds,” Crain’s New York Business.com,
[http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20081205/FREE/812059979/0/], accessed January 7, 2009.
16.
Stephanie Rosenbloom, “After Weak Holiday Sales, Retailers Prepare for Even Worse,” The New York Times, January 9, 2009.
17.
New York State Governor David A. Patterson, November Special Session Deficit Reduction Plan, Albany, NY: November 12, 2008.
18.
Henry Goldman, “NYC Faces $7 Billion Deficit by 2011, Agency Says,” Bloomberg.com,
[http://www.bloomberg.com/apps/news?pid=20670001&refer=us&sid=az6NB1CePkK0]
19.
Chris McKenna, “Paterson wields budget ax, cuts deep. Schools face double-digit cuts in aid,” Times Herald-Record, December 17,
2008.
20.
Henry Goldman, “NYC Faces $7 Billion Deficit by 2011, Agency Says,” Bloomberg.com,
[http://www.bloomberg.com/apps/news?pid=20670001&refer=us&sid=az6NB1CePkK0]
21.
Peter Orszag and Joseph Stiglitz,“Budget Cuts vs Tax Increases at the State Level: Is One More Counter-Productive Than The Other
During a Recession?,” Center on Budget Policies and Priorities (November 2001), [http://www.fiscalpolicy.org/10-30-01sfp.pdf],
accessed January 29, 2009.
22.
Elizabeth McNichol and Iris J. Lav, “State Budget Troubles Worsen,” Center on Budget and Policy Priorities (January 14, 2009),
[http://www.cbpp.org/9-8-08sfp.htm], accessed January 16, 2009.
23.
Tom Suozzi, “Want a fast stimulus? Have feds pick up Medicaid tab,” New York Daily News, January 1, 2009.
24.
Fiscal Policy Institute, “The Path Not Taken: How New York State Increased the Tax Burden on the Middle Class and Cut Taxes for
its Highest Income Taxpayers by Over $8 Billion a Year,” [http://www.fiscalpolicy.org/taxhistory2.htm], accessed December 22, 2008.
25.
Ibid.
26.
Thomas Piketty and Emmanuel Saez, “Lower Taxes for the Highest Earners,” The New York Times, October 31, 2007.
27.
Ibid.
28.
David Leonhardt, “Income Inequality,” The New York Times, January 20, 2009.
29.
Ibid.
29