Conghaileach
12th December 2002, 23:29
Reprinted from the Dec. 12, 2002 issue of Workers World newspaper
-------------------------
BILLIONAIRE NYC MAYOR'S PROPOSED BUDGET: THE POOR WILL PAY, THE RICH
WILL GAIN
By G. Dunkel
New York
New York City's economy has been contracting for seven quarters,
starting well before the catastrophe of Sept.11, 2001. The surpluses of
the last two years have now turned into huge deficits: about $1 billion
this year and a projected $6 billion deficit next year.Layoffs, service
cuts, higher taxes and fee hikes are finally, after the elections,
coming home to roost and to depress the living standards of the working
and poor people of this city.
Only 11 states have more people than New York City. With 8 million
people, it is more than twice as populous as Los Angeles, the next-
biggest city in the country.
New York is not alone in its budget woes--almost every state and local
government is suffering from budget shortfalls. Even the federal
government has proclaimed that it will not be giving federal workers
their normal raises. President George W. Bush says that "our national
situation [the 'war on terror'] precludes granting larger pay increases
... at this time."
TAXES LOWERED FOR RICH, RAISED FOR WORKERS
The New York City Council passed a whopping 18.49-percent increase in
the real-estate tax with a scant 11-day notice and almost no public
comment. They justified it as an essential step in stanching the
deficit this year.
The average homeowner's tax bill will go up by about $340 a year. The
average co-op owner will pay an extra $496 per year, and the average
condominium owner $836 more annually. It won't immediately affect the
majority of New Yorkers who rent--but their landlords will pass the
increases onto them through their leases, with a little bit extra for
profit thrown in.
Since the city andthe state intend to maintain the income-tax decreases
passed in the recent flush times, which mainly helped the rich,the poor
and workers of New York are left to pay off the deficit.According to an
analysis prepared by the Working Families Party, "For most New Yorkers,
the combination of property tax hike and income tax cut will result in
higher taxes overall, even while they are being asked to accept major
service cuts."
According to figures supplied by the City Council, an average renter
making $24,000 a year will wind up paying $174 more per year after a
rent hike and the income tax decrease are applied. However, co-op or
condo owners, making an average of $180,000 a year, will pay $1,127
less in city taxes overall.
At the top of the heap, the owner of a $4-million townhouse with an
average income of $3.5 million will pay $3,700 more in property taxes--
but their income taxes will drop by $31,500, saving them a net of
$27,800.
This is how billionaire New York Mayor Michael Bloomberg, who owns a
townhouse, is going to ensure the poor pay while the rich gain.
Even with this huge increase in property taxes, the deficit for next
year will still be $3 billion, down from $6 billion. The city is
pretending that the state and the federal government will help it cover
this hole, but that is unlikely.
This means that the city officials will try to resort to layoffs, since
personnel costs are a big part of the budget.Bond payments to the banks
are another big budget item, but these are sacrosanct in a capitalist
economy. Some 500 layoff notices have reportedly already gone out to
administrators and clerical workers in the Department of Education. A
few other smaller agencies have also been immediately affected.
Some politicians are predicting bigger layoffs than in the 1970s. Then,
one out of every five city employees lost their jobs.
Lillian Roberts, executive director of AFSCME District Council 37 that
represents 125,000 city workers, said the city should eliminate
contractors rather than low-wage workers.
Even before the full impact of the rise in housing costs has been felt,
homelessness has been growing here,as throughout the United States. The
National Alliance to End Homelessness estimates that 1 million people
in this country lack a place to sleep at night.
New York City is legally obligated to offer every homeless person
shelter. Each night now, an average of more than 37,000 people stay in
city shelters. That is the highest on record. About 6,000 to 8,000 of
them are in family units; the rest are individuals.
Since Sept. 11 in New York, authorities have sealed off tunnels,
undersides of bridges and alleys where homeless people once sought
shelter. Police sweep homeless people off the streets by arresting them
if they don't go to a city-run shelter.
The police department denies that it uses this tactic against the
homeless. But a local advocacy group is suing to stop this policy. And
one police officer here was recently suspended for refusing a direct
order to arrest a homeless man on trespassing charges.
- END -
(Copyright Workers World Service: Everyone is permitted to copy and
distribute verbatim copies of this document, but changing it is not
allowed. For more information contact Workers World, 55 W. 17 St., NY,
NY 10011; via e-mail: [email protected] Subscribe wwnews-
[email protected] Unsubscribe [email protected] Support the
voice of resistance http://www.workers.org/orders/donate.php)
-------------------------
BILLIONAIRE NYC MAYOR'S PROPOSED BUDGET: THE POOR WILL PAY, THE RICH
WILL GAIN
By G. Dunkel
New York
New York City's economy has been contracting for seven quarters,
starting well before the catastrophe of Sept.11, 2001. The surpluses of
the last two years have now turned into huge deficits: about $1 billion
this year and a projected $6 billion deficit next year.Layoffs, service
cuts, higher taxes and fee hikes are finally, after the elections,
coming home to roost and to depress the living standards of the working
and poor people of this city.
Only 11 states have more people than New York City. With 8 million
people, it is more than twice as populous as Los Angeles, the next-
biggest city in the country.
New York is not alone in its budget woes--almost every state and local
government is suffering from budget shortfalls. Even the federal
government has proclaimed that it will not be giving federal workers
their normal raises. President George W. Bush says that "our national
situation [the 'war on terror'] precludes granting larger pay increases
... at this time."
TAXES LOWERED FOR RICH, RAISED FOR WORKERS
The New York City Council passed a whopping 18.49-percent increase in
the real-estate tax with a scant 11-day notice and almost no public
comment. They justified it as an essential step in stanching the
deficit this year.
The average homeowner's tax bill will go up by about $340 a year. The
average co-op owner will pay an extra $496 per year, and the average
condominium owner $836 more annually. It won't immediately affect the
majority of New Yorkers who rent--but their landlords will pass the
increases onto them through their leases, with a little bit extra for
profit thrown in.
Since the city andthe state intend to maintain the income-tax decreases
passed in the recent flush times, which mainly helped the rich,the poor
and workers of New York are left to pay off the deficit.According to an
analysis prepared by the Working Families Party, "For most New Yorkers,
the combination of property tax hike and income tax cut will result in
higher taxes overall, even while they are being asked to accept major
service cuts."
According to figures supplied by the City Council, an average renter
making $24,000 a year will wind up paying $174 more per year after a
rent hike and the income tax decrease are applied. However, co-op or
condo owners, making an average of $180,000 a year, will pay $1,127
less in city taxes overall.
At the top of the heap, the owner of a $4-million townhouse with an
average income of $3.5 million will pay $3,700 more in property taxes--
but their income taxes will drop by $31,500, saving them a net of
$27,800.
This is how billionaire New York Mayor Michael Bloomberg, who owns a
townhouse, is going to ensure the poor pay while the rich gain.
Even with this huge increase in property taxes, the deficit for next
year will still be $3 billion, down from $6 billion. The city is
pretending that the state and the federal government will help it cover
this hole, but that is unlikely.
This means that the city officials will try to resort to layoffs, since
personnel costs are a big part of the budget.Bond payments to the banks
are another big budget item, but these are sacrosanct in a capitalist
economy. Some 500 layoff notices have reportedly already gone out to
administrators and clerical workers in the Department of Education. A
few other smaller agencies have also been immediately affected.
Some politicians are predicting bigger layoffs than in the 1970s. Then,
one out of every five city employees lost their jobs.
Lillian Roberts, executive director of AFSCME District Council 37 that
represents 125,000 city workers, said the city should eliminate
contractors rather than low-wage workers.
Even before the full impact of the rise in housing costs has been felt,
homelessness has been growing here,as throughout the United States. The
National Alliance to End Homelessness estimates that 1 million people
in this country lack a place to sleep at night.
New York City is legally obligated to offer every homeless person
shelter. Each night now, an average of more than 37,000 people stay in
city shelters. That is the highest on record. About 6,000 to 8,000 of
them are in family units; the rest are individuals.
Since Sept. 11 in New York, authorities have sealed off tunnels,
undersides of bridges and alleys where homeless people once sought
shelter. Police sweep homeless people off the streets by arresting them
if they don't go to a city-run shelter.
The police department denies that it uses this tactic against the
homeless. But a local advocacy group is suing to stop this policy. And
one police officer here was recently suspended for refusing a direct
order to arrest a homeless man on trespassing charges.
- END -
(Copyright Workers World Service: Everyone is permitted to copy and
distribute verbatim copies of this document, but changing it is not
allowed. For more information contact Workers World, 55 W. 17 St., NY,
NY 10011; via e-mail: [email protected] Subscribe wwnews-
[email protected] Unsubscribe [email protected] Support the
voice of resistance http://www.workers.org/orders/donate.php)