Unemployment, Income Inequality and Bad Tax Policy How Do We Turn It Around and Rebuild the Middle Class STRONG COMMUNITIES REALLY DO WORK! Ron Deutsch Executive Director New Yorkers for Fiscal Fairness

The average duration of unemployment in NYS is 9 months, higher than the nation overall and it’s nearly a year for college educated NYC residents.

Unemployment remains higher in Upstate Cities and NYC than in the suburbs Black and Hispanic unemployment is twice as high or more that of White, non-Hispanics In addition to persistently high unemployment, many workers are discouraged and there has been an increase in involuntary part-time employment

State Spending Cap and Property Tax Cap: The Governor’s self-imposed 2% State Spending cap and local property tax cap is crushing state and local services Property tax cap is squeezing local governments at a time when the state is cutting aid to local governments The 2% State Spending Cap means that state services and state agencies are being squeezed and workers are being asked to do even more – with fewer resources

Tax Reforms in Budget: Corporate Tax Reform: Eliminates Corporate Tax for Manufacturers Drops Corporate Tax Rate to 6.5% Estate Tax Reform: Increases estate tax threshold from $1 million to $5.25 Million Property Tax Reform: Property Tax Freeze Circuit Breaker for NYC Other Tax Cuts and Giveaways: $350 Rebate Check Child Credit Start Up NY

NY spends $7 Billion a year on Economic Development Subsidies and Tax Credits

Where is our $7B going? Only 4% of businesses in New York are currently receiving economic development money According to the Governor’s own Tax Commission, less than 1% of big businesses get tax subsidies Tax subsidies have grown 300% since 2005

$550,000 $52.4 M $4 M $13.8 M $93+ M $14 M 2.3 M $100 M

What is our $7B accomplishing? Few economic development programs have any job creation requirements No programs require that the jobs created are good jobs 68% of the IDA projects that ended in 2011 lost jobs, did not create jobs, or did not meet their job creation targets

Turning it Around: Rebuilding the Middle Class Call to Action! Strong Communities Really Do Work!!!!! Close Corporate Tax Loopholes and Eliminate Subsidies to Big Business Add new bracket to Personal Income Tax and ask those making over $500,000 per year to pay a little bit more Stock Transfer Tax – reinstate and rebate a smaller portion Eliminate the 2% state spending cap Invest in Education, Social Services, Infrastructure and rebuild our Cities

MAKE A CHOICE! Do we want Good Paying Middle Class Jobs that let workers support their families Or More tax cuts for banks and big corporations Do we want jobs that provide REAL retirement security or More low wage jobs that offer no retirement security and no future Do we want to rebuild the middle class in this state Or Do we want to make millionaires even richer while the rest of us lose ground? There is always a choice – what do you choose?? I choose to fight for Good Paying Middle Class jobs with benefits and retirement security because these are your Jobs!!! These are the jobs that make Strong Communities Work. You are the warriors in the trenches and we are all in this battle together Are you with me?????????