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State News Release - Jan 24, 2002

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New York Green Party
Green Party Opposes Pataki "Tax and Spend" Proposals that Benefit the Wealthy.

Greens Call for Investments in Housing, Education, Health Care, Environment.

The Legislative Committee of the Green Party today criticized Governor Pataki budget proposals that continue the drastic cuts in human services imposed by last year's state budget while seeking to spend hundreds of millions of dollars for additional tax cuts and corporate welfare.

"Once again, the Governor is taxing the poor and middle class to fund tax cuts and corporate welfare for his campaign contributors, the typical tax and spend agenda of conservatives," stated Steve Breyman of the Rensselaer County Greens.

The Greens called for enactment of a state universal health care program, along with  significant increases in funding for education, public colleges, environmental protection, affordable housing, and job creation. The Greens also supported an expansion of unemployment insurance, which presently only covers 37% of New York's workers.

The greens said that such programs could easily be paid for by ending the rebate on the stock transfer tax; a moderate increase in the personal income tax rate for the wealthiest New Yorkers; adoption of a single payer health care system; an increase in the state minimum wage; and, a repeal of the Rockefeller Drug Laws. New York presently returns to Wall Street $8 billion it collects annually from a small tax on stock transactions.

"For too long the Democrats and Republicans have financed tax giveaways to their campaign contributors by raising taxes and reducing services for the rest of us. Pataki is seeking to use September 11 as another excuse to transfer more funds to his supporters. The Greens support a state budget that invests in families and children, not fat cats," said Pete Looker, a Green Party candidate for State Assembly in the 100th Assembly District.

The Greens called for a closing of various tax loopholes for corporations and the wealthy, such as the investment tax credit; a delay in tax cuts that have not yet been phased in; and an increase in the personal income tax rate for wealthiest taxpayers to the late 1980 levels. The Governor is proposing to continue to phase in more than $300 million in additional tax cuts, including cutting the tax rate on net income for banks and insurance companies from 8.5% to 7.5%.  The Greens also said that state tax revenues should be increased by raising the state minimum wage to at least $10 an hour, which would help stimulate the economy, increase tax collections, and reduce the cost of the Earned Income Tax Credit and other public benefit programs.

The Greens noted the poor and moderate income families in New York pay a much higher percentage of their income for local and state taxes than the wealthy. The poorest 20% of the state's residents pay 16% of their income in state and local taxes, while the top 1% pay only 9%. Even a modest one to 2% increase in the personal income tax for wealthy taxpayers with adjusted gross incomes above $100,000 would generate several billion dollars.

The Greens said rather than taxing working families to increase state spending on welfare for the rich and large corporations as George Pataki has proposed, taxes for low and middle income families and small businesses should be reduced. The Greens called for the billions proposed by the Governor in corporate welfare, including an increase of at least $400 million in 2002-03 outlays, to instead be used to meet the state's legal requirement (Sec. 54 of State Finance Law) to share eight percent of its revenues with local governments, which would result in a lowering of property and sales taxes. The state presently provides less than 1.4% of it's revenues to local communities.

Aid to New York City would be increased by ending the rebate on the stock transfer tax and be reinstating the commuter tax. The commuter tax, repealed by the legislative leaders during a special Senate election in Rockland County a few years ago, would give the City $500 million by imposing a small fee on out-of-town workers who use city services while at work. Even  reducing the rebate of the stock transfer tax from 100% to 90% would provide NYC with $800 million.

The Greens opposed the Governor's proposal to raid the state's multibillion surplus from federal welfare reform, calling instead for a hike in welfare benefits; increased funding for job creation; and, increased access to college, child care, basic education and job training programs for welfare. Despite an annual surplus of $1.5 billion from the 1996 federal welfare reform, the Governor and State Legislature have failed to raise welfare benefits for children and their families since 1990. Welfare benefits, already inadequate in 1990, have fallen to below 50% of the federal poverty level. Children are the principal victims.

The Greens opposed the Governor's effort to make the Tuition Assistance Program for college partly a loan program, saying it would make it even more difficult for low-income people to attend college. The Greens said that the Governor, who is seeking to transfer $345 million for federal welfare dollars to pay for TAP, should at least support allowing welfare participants to attend college. The only group of welfare participants who are able to escape poverty when they move off on welfare are those who have attended college. The number of welfare participants in college have dropped in half since welfare reform was enacted, including a drop of 22,000 in the CUNY system.

The Greens also called for an immediate repeal in the Rockefeller Drug Laws along with amnesty for nonviolent offenders presently imprisoned. The Greens would invest the savings in criminal justice costs realized from a reduction in the inmate population to invest in the public university and education systems.

"It is an outrage that the Governor wants to spend more money on prisons than on the State University system. We need to invest in educating our children, not locking them up. It is also time for the Governor to recognize that our system of underfunding urban and rural schools in unconstitutional and counterproductive,"stated Mark Dunlea, Vice-Chair of the Green Party of New York State, and chair of the Greens Legislative Committee. The Governor's education funding proposals fall hundreds of millions of dollars below what is needed to maintain current services, let alone resolve the problem of underfunding poorer school districts. The Greens would also overhaul the State's Star property tax program to ensure that poorer districts got a fair share; the Star program presently gives most of the tax savings to wealthy homeowners in affluent suburban communities.

"Economic development funds should not be used by Pataki and his fundraising chief Charles Gargano to reward campaign contributors. The state should fulfill its statutory obligations to share state revenues with local governments, and it should be up to these governments to democratically decide how to best create jobs in their communities. And any economic develop funds must have strong contractual requirements to ensure that living wage jobs are produced or the welfare returned," stated Elmer Berstch of the Schenectady County Greens.

The Greens called for the state to save billions of dollars by enacting a single payer health care system to eliminate the funds wasted on private health insurance and their accompanying profits and paperwork. "George Pataki, Joe Bruno and Sheldon Silver agreed behind closed doors agreed to cut a deal on health care, yet three million New Yorkers remain without any health insurance coverage. A single payer universal health care system would save money while allowing us to expand coverage. The only reason it hasn't already enacted is the power of special interests who profit from our poor health care system," stated Masada Disenhouse of the Downtown Brooklyn Greens.

The Greens support a restoration of funding to nonprofits that were cut out of last year's state budget and an increase in funding for HIV and AIDs programs. The Greens oppose the Governor's effort to transfer $100 million out of the Environmental Protection Fund.

The Greens said they supported using the State's purchasing power to require companies seeking to participate in Medicaid to reduce the cost of prescription drugs, as Florida and Michigan have done. NYS spent $2.2 billion on prescription drugs in the first three quarters of 2002, an 80% increase from 1998. The Greens estimates this the state could save half a billion dollars on drug costs.

The Greens are committed to ecology, grassroots democracy, nonviolence and social and economic justice.

http://www.gpnys.org/

State News Release - January 24, 2002

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