Massive Protest Against State Budget Draws 50,000 to City Hall

Thousands of teachers, health care workers, labor unions, and community groups held rallies across New York State yesterday to protest Governor Paterson's budget proposal, which would slash approximately $2.5 billion in education funding, $3.2 billion in health care, and cut billions from programs for senior services, disability services, housing assistance and crisis intervention programs. In downtown Manhattan, rally organizers say some 50,000 people assembled around City Hall, and the crowds forced the NYPD to reduce Broadway to one lane and close side streets.

Jumbo-trons were set up so protesters in the back of the crowd could watch and hear the speakers, many of whom called for "fair tax reform," demanding tax hikes on New Yorkers who earn more than $250,000 per year. Website Urban Elephants has a report from the rally, and argues that "over the past thirty years New York has cut its tax rate for the wealthiest residents by 50% and reduced its top tax rate to 6.85% for anyone earning over $40,000 per year. Such an anomaly has created a tax system where someone making above $40,000 per year pays the same marginal tax rate as someone earning $4 million."

United Federation of Teachers President Randi Weingarten explained the tax reform demand to the crowd: "For those of you who prosper during boom time, we ask them pay a little bit more. Pay a little more so New York can avoid cutting the services that our most vulnerable need." And China Lankford of Jamaica, Queens, sent a message to the governor via Channel 2: "Governor Paterson, I wish you could have an open heart that we are going to suffer if this budget cut goes through."

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By John Del Signore in News on March 6, 2009 9:17 AM

Comments [rss]

NannyState

"We need more programs".

Jerky

"Such an anomaly has created a tax system where someone making above $40,000 per year pays the same marginal tax rate as someone earning $4 million."

Huh?

If you make $50,000 you pay 6.85% state tax on all earnings, city tax of $1455 plus 3.591% on the excess over $45,000, plus $8,844 in federal tax. That's a total of

$3425 + $1455 + $179.55 + $8844 = $13,903.55, a 27.8% effective rate in a federal tax bracket of 25%.

If you make $4 millions you pay 7.7% state tax on all earnings, $3071 plus 3.648% of the excess over $90,000, plus $1,378,579 in federal tax. That's a total of $308,000 + $3071 + $142,636.80 + $1,378,579 = $1,832,286.80, a 45.8% effective rate in a federal tax bracket of 35%.

Thus, the "poor" person is paying a 10% premium over federal taxes due to NYState taxes, while the rich is paying a 30% premium. These protesters should shut the f*k up and go complain to the non-state workers without all the nice benefits they get!

Spirit of 76

Er, you may want to rescind your job application at H&R Block. There's a very important word you missed in the quote before you went lunging for the calculator and the tax tables. Look up "marginal tax rate."

Jerky

The point is that the statement about marginal tax rates versus effective rates (what someone actually cares about) is a red herring. Do the math, and the rich are paying significantly more taxes in the first place.

Spirit of 76

I think it's safe to say that that's another 50,000 votes Paterson can kiss goodbye if he's dumb enough to run next year.

Jack Oniel

So important I had to say it twice...

Jack Oniel

Please, raise my taxes more so I can move out of NYS. It's the tipping point - first Maobama and then this, at least this I can avoid.

sharpshoota

oh poor you.... want some kleenex....good riddance.

Jack Oniel

Puffs Plus with Vicks please, thanks for the bailout!

Jack Oniel

Puffs Plus with Vicks please, thanks for the bailout!

Jack Oniel

Please, raise my taxes more so I can move out of NYS. It's the tipping point - first Maobama and then this, at least this I can avoid.

BigNick

For those tenured teachers who make over 85K/year, have summers off, can't teach for shit and can't be fired, I tell you Randi Weingarten, suck it.

unregistered_wiseguy

If I had my life to live over, the second I turned 18, I would join some labor union in the public sector.

High pay, great benefits, supreme job protection, little or no expectations from the public, and leaders who constantly comlain on my behalf about how I'm getting screwed by the system ... ah, that's the life.