Daschle's $128,000 Mistake

Seriously, how, after working as a Senator who wrote tax legislation, do you fail to pay $128,000 in taxes? I'm sure he's going to be confirmed and for all I know he's a great guy, but I hope that he runs HHS better than his own finances.



Update (2/3/09 1PM): Oh well, so much for that.

Paterson Proposes Tax Hikes After All...For The Middle Class

The Governor's budget comes out tomorrow, but the details are starting to leak today. He'll definitely being cutting programs for the poor like Medicaid and others. Tuition increases for CUNY and SUNY students is also on the list. Yet for the time leading up till this week, Paterson said he didn't want to increase taxes. Well guess what, he changed his mind....though not for the people that can best afford it.

From The NY Times:

ALBANY — Gov. David A. Paterson will propose a $4 billion package of taxes and fees on a range of items, from sugary soft drinks made by Coca-Cola and Pepsi to luxury items like furs and boats, when he unveils his plan to close a deficit that has ballooned to $15 billion, people with knowledge of the plan said on Sunday.

Higher taxes will also be imposed on health insurers and a sales tax exemption on clothing and footwear under $115 will be eliminated, though the administration will propose a two-week holiday for goods under $500, under the budget the governor will introduce on Tuesday.

A number of fees will be increased, with users of the Department of Motor Vehicles and the state parks bearing much of the burden, people with knowledge of the plan said. Tuition at the State University of New York and the City University of New York will also be increased.

So basically the taxes that affect the working and middle classes will be raised the most. His excuse for not following the wishes of most New Yorkers to cut some programs and tax the rich was ignored. He says that the rich will leave New York and take their money elsewhere, a common tool used to scare the peasants in this globalized age.

Now Governor Paterson has expressed his remorse for these decisions, some that go against what he's voted for in the past. Yet that was then and this is now. Despite his move from the Legislative to the Executive branch in Albany, he should stay faithful to his principles and protect those that really need the help in these dire times and not the wealthy who have for the most part been preparing for nasty economic weather.

Bloomberg's Answer To Fiscal Crisis Is To Punish The Middle Class

Supporters of Mayor Bloomberg's end run around democracy last month claim that they want someone that can steer us through bad financial times. Well he is definitely ready to act, but if you aren't a wealthy developer or real estate tycoon he might just crash the budget right through you. His proposals thus far to close the city's budget gap is to cut programs for those that have been slashed too much already.

From The NY Daily News:

His solution includes:

- Not only slashing 3,000 jobs but canceling the January Police Academy class.

- Chopping school-based budgets by 1.3% - $359 million - over the next two years.

- Rescinding the 7% property tax rate cut this year, pumping $576 million into the city's coffers.

- Erasing the $400 rebate, a savings of $256 million.

- Increasing fees and fines to generate $123 million.[...]

The bleeding will include shorter library hours, less training for firefighters and fewer child welfare supervisors and street cleaners.

Even with the layoffs and steep service slashes, Bloomberg said, the city still faces a $1.3 billion deficit in 2010.

The list of possibilities to recoup the cash, he said, includes repealing the sales tax exemption on clothing, raising income taxes by 7.5% or even 15% in January and more services cuts.

The proposed increase in personal income tax would hit the middle class, costing those who earn $50,000 to $90,000 about $116 to $356 more next year, according to City Hall's estimates.

Nothing in that bill has any effect on those who have plenty of money to weather the financial storm we are in. Every single item in there is meant to save Bloomberg's wealthy friends at the expense of those who are having trouble in these times. The truth is he really could care less about the residents of New York City, unless they are a part of the gentrification process or call the Plaza or the Pierre their second home.

So will the City Council play ball and bend over for the Mayor like twenty-nine of them did with the term limits fiasco? Quinn doesn't like what Bloomberg wants to do, but since she is the Mayor's official tool, I have no confidence in her to do anything right for her constituents on the west side or any side of our city. She has already proven her worthlessness to us as Speaker and better expect to be challenged for her seat next year, along with everyone else she helped get behind the Mayor with their arm-twisting and threats of taking away their precious lulu.

Obama Ad Highlights McCain's Tax Increase On The Middle Class

John McCain may want to lower taxes, but it is primarily for the rich. He wants to show us he has a health care plan that helps America, but he fails to say how he intends to make us pay for it:

Paterson Readies His Budget Axe Yet Again

Sunday night was the first I had heard of the Lehman Brothers bankruptcy and Bank of America's acquisition of Merrill Lynch. One of the first things I wondered yesterday morning was when Governor Paterson would call legislators back up to Albany for more budget cuts. While Congress may act first on a stimulus package, a crisis on Wall Street can be felt far and wide but the epicenter is still New York. So what is a Governor to do that has already slashed almost $500 million from the budget?

From The Times-Union:

"I would not be surprised if the budget deficit we just cut down may skyrocket back up, and I may have to call on the Legislature to come back and grapple with it again," Paterson said Monday during an interview on the New York City-based NY1 news channel. He repeated that contention on the regional cable TV channel Capital News 9.

Paterson's remarks came during a tumultuous day on Wall Street, as the Dow Jones industrial average plunged 500 points -- its worst drop since Sept. 11, 2001 -- on the news of Lehman Brothers' bankruptcy filing, the takeover of Merrill Lynch by Bank of America, and the state's plan to devise a lifeline for American International Group insurance company.

The upheaval will likely mean mass layoffs and a drop in state income tax revenues. Officials say the results of their midyear financial report, usually finished in late October, will dictate whether lawmakers need to impose another round of cuts.

Legislative leaders took a wait-and-see attitude toward another crisis session.

The wait-and-see won't last long and Albany could become a center of chaos as early as next month, before election day. Paterson talked about tax hikes as well as budget cuts, so that is better than this past special session where it was all about cutting services from the Republican Senate and the Governor's office.

As TU points out, this upcoming session should be even more intriguing than the last, as voters across New York will decide if control of the State Senate swings to the Democrats or not. Only two seats will make a difference, that is if you don't count the DINOs in there at the moment. Legislators definitely have big decisions as they face their constituents in a few weeks and will have to judge whether they balance the budget by raising taxes or cutting programs, because revenues are going to drop even further thanks to Wall Street.

McCain Still Doesn't Know His Tax Policy

And it begs the question, what else doesn't he know about himself?

City Council Stands Up Against Greedy Hedge Funds

The big, overriding problem in our country is that while the rich are getting richer, the poor are getting poorer. The war is on the list as well, but that too can be connected to the astronomical gap in wealth between the top and bottom classes in our society. One instrument that has been increasing the trend are hedge funds and those that run them. These people invest in good causes (sometimes) but always make obscene amounts of money. This being New York, there are plenty of these people and at least some in our government want to do something about it, like our City Council.

From The Gothamist:

The NY Sun reports 26 out of the 51 City Council members support an Assembly bill that would require hedge fund and private equity managers to pay more in taxes.

The City Council is looking for ways to raise money (like implementing a hotel room tax) rather than slashing programs, noting, "With New York City facing tight budget projections in the years to come, it is incumbent on all of us to make sure everyone is paying their fair share of the tax burden before we ask those who depend on social services and public investments to suffer in the form of budget cuts to schools, mass transit, or health care."

While Governor Paterson and the Legislature would need to sign off on such a tax, this also flies in the face of Mayor Bloomberg's "don't tax the rich" stance. The Mayor believes if the "best and brightest" are taxed--especially as we're competing with other global cities for their talents--they will flee. And the City Council members and others who oppose this kind of a tax say the unincorporated business tax should be eliminated completely and this is not the time to introduce a tax, given the woes of Wall Street.

Okay so its really a razor thin majority that wants to do it, but that isn't bad considering that Bloomberg tries to strong-arm council members and many members can benefit from the generosity of hedge fund managers. Still, these are desperate budgetary times and we need to find the money to keep our city humming. We need to do that without putting even more of a burden on the backs of those that carry so much weight already.

Of course it isn't even up to the Council, this is an Assembly bill and there is no way this will pass the State Senate (this year or next) even if we do get the majority back this November. Taxing the rich is always an uphill battle because the rich have so much control as it is.

Working Families Party Reasserts Tax Proposal On The Wealthy

Although the tax hike on New York's wealthiest failed during the budget process this year, there is new hope for implementation of it yet again. It doesn't look exactly like what it did two months ago, but a redistribution of income for those that have less is definitely a good thing considering all of the corporate welfare that has been going on in New York and the country in the last few years decades.

From The NY Sun:

Under a plan advanced by the labor-backed Working Families Party, the wealthiest New Yorkers would see their state personal income taxes more than double.

Marginal income between $500,000 and $1 million would be taxed at a rate of 9.35%. Between $1 million and $5 million, the rate would go up to 10.35%. From $5 million to $10 million, the rate would be 11.85%. Income above $10 million would be taxed at $13.85%, which is more than double the current rate of 6.85%.

Party officials said the tax hike would generate $6.5 billion a year for the state and would apply to just fewer than 100,000 filers.

The money would be used to pay for a property tax break for households with up to $250,000 in gross adjusted income. The plan would give rebates to homeowners when their taxes consume a certain percentage of their income. The rebate would cover 70% of the taxes owed above the percentage cap, which would range between 5% and 9% of income.

It is time for legislation on local, state and federal levels to have some progressive threads in it. This bill would do just that for the Empire State. Even though Speaker Silver hasn't come out for it yet, I doubt it matters until Joe Bruno is no longer one of 'three men in a room'. Despite that, we must continue to push for these issues so that New York weeds out the politicians who side for the wealthy and not the people.

Getting rid of Bruno's majority this November will go a long way in starting that process.

Weiner Wants The IRS To Do Our Taxes

So today is April 14th, meaning by the midnight tomorrow, you've either have to have your tax returns mailed in, filed for an extension or as many others do, have an accountant take care of it for you. It is a major headache for millions of Americans and makes late March and early April a hellish time for CPAs and all those that do taxes for a living. However, that could all change if a bill proposed by Congressman (and Mayoral candidate) Anthony Weiner passes through Congress this year.

From The NY Daily News:

Some 40% of Americans who file the simplest tax forms would qualify for the proposed "auto file" program, which will be introduced by Rep. Anthony Weiner (D-Brooklyn, Queens) when Congress returns next week.

"More people will file. Fewer people will have to spend money on tax firms or on computer software. And we'll be improving the relationship between the IRS and taxpayers for whom April 15 is a big headache," Weiner said.

The voluntary system, similar to California's "Ready Return" program, would apply to taxpayers who use 1040EZ and 1040A forms.

The IRS would use the W-2 and 1099 documents it gets from employers to fill out the forms.

Taxpayers would have a chance to review the IRS's calculations and make changes before signing the forms, Weiner said. Those who itemize their deductions probably would not want to use auto file, he said. And taxpayers would still have to take care of their state tax forms.

So the program is voluntary and if you have itemized deductions this won't work for you. If you simply file taxes without trying to pay less then go ahead, but most people want to do the opposite. After looking at this bill, it seems that Weiner is just trying to get some publicity in time for the height of tax season.

Debate To Tax The Rich Heats Up

As the budget deadline looms near, everyone in New York is looking to get their agenda accomplished. Bloomberg is working hard on congestion pricing, some legislators are looking to get paid more and a Working Families Party idea to raise the tax on millionaires is making its way through the process. Since things are still uncertain, we are hearing a lot from those that want to see the massive budget gap partially filled by this tax and those (the rich) that do not. The ads have already started appearing for congestion pricing and now we have those in favor of the millionaires tax.

From The Daily News:

The one-minute spot starts airing today - just as state lawmakers are back in Albany with one week to go until the April 1 budget deadline - and will remain on the air "for a while," according to Ron Deutsche, executive director of New Yorkers for Fiscal Fairness.

The spot, entitled "Tough All Over," notes how the cost of gas and health insurance keeps escalating, which is allegedly squeezing the middle class nearly out of existence as "the rich are getting richer" and "the wealthiest New Yorkers just aren't paying their fair share."

"A national recession means out state's budget is in trouble," the ad continues. "Some Albany leaders want to cut funding for hospitals and nursing homes and reduce money for schools and colleges. There is a better choice. By raising taxes on people who earn over a million dollars a year, we can protect education and save quality healthcare. Taxing millionaires or cutting schools and health care - that's an easy choice."

Sure, its a little deceptive, but sometimes its hard to fit all the details into thirty seconds and get your point across. The facts are that the middle and working classes are punished in more ways than just taxes and the rich have plenty of money in order to live comfortably. The complaints from the wealthy fall on mostly deaf ears across the state, considering the burgeoning number of foreclosures, rising gas prices and a whole host of issues in this declining economy.

If lawmakers are smart, they'll include this in the budget since their constituents want it. According to the Quinnipac survey , 77 percent of people support it. Not only is it popular, it'll make a billion and a half dollar difference in these hard times. Despite the assumption that the rich will leave NY (which isn't true), it is more important that the burden of the recession not be placed on the people that have always taken the brunt of bad times, those who make way less than a million dollars a year.

Bloomberg Whines About Taxes

The Democratic majority in the state assembly have been talking about a temporary (though it should be permanent) tax on those that make more than a million dollars a year. This boost would bring in an additional $1.5 billion to our treasury that desperately needs the funds. If anything, the money will help to save programs that help those that have the least among us and put a tiny dent into those that have beyond plenty. Unfortunately, the most public millionaire billionaire has to pout about this issue (as he does about many others).

From The NY Sun:

Balancing the state's budget on the backs of its richest citizens could make New York City a less desirable place to do business and even lead residents to move away, Mayor Bloomberg cautioned yesterday at a press conference in Queens.

"I think at this point, where we're in competition with other cities around the world for entrepreneurs and the best and the brightest, it's not the time to be raising taxes," he said in response to a question about a proposal by some Democratic Assembly members to raise income taxes by 12% on residents making more than $1 million a year. Supporters of the tax say it would raise $1.5 billion in state revenue a year and help to close a looming budget gap.

In criticizing the tax, the mayor contrasted the proposal with his congestion pricing plan, saying commuters could avoid congestion fees by changing their behavior. "They have an alternative — the alternative is to take mass transit," Mr. Bloomberg said. "If you were to raise taxes on a particular group of people, their alternative is moving out of the city and taking with it all of the revenues that they would generate."

No, sorry Mr. Mayor, you do not get to compare middle class renters and homeowners in the far reaches of the Bronx, Westchester, Brooklyn and Queens to the wealthy few that make more than a million dollars a year. That is just not gonna work with New Yorkers. The argument that rich people will leave the city is just a fear tactic that keeps the wealthy making more money and the poor being screwed even more than they have been already.

Taxing The Super Wealthy In NY

Lets face it, nobody likes tax increases. On the flip side, we need taxes to keep our civilized way of life going, or else we would each have to pave our little strip of street outside and you know that'll never happen. Anyways, it is getting more well known that in this oncoming/present recession, income taxes are going to be down across the board, but there is always one group that is able to fly through tough times. That would be the super wealthy.

From Business Week:

The Assembly's Democratic majority on Wednesday proposed a temporary increase in income tax paid by New Yorkers making more than $1 million a year.

The measure, expected to be in the Assembly's budget proposal next week, would raise $1.5 billion annually, said Dan Weillor, spokesman for Assembly Speaker Sheldon Silver.

It would raise the income tax from 6.85 percent to 7.7 percent for New Yorkers making more than $1 million a year. The first year's revenue would go to the general fund, which the state uses to pay for most functions and from which it will need to fill a $4.8 billion deficit.

The second year's revenues would be split between the general fund and transportation needs. The last three years' revenues would be used for transportation costs, split between the New York City mass transit and the state Department of Transportation, Weiller said.

Oh my god, nooooooo, taxes, how will I be able to buy my third yacht?!?!? Seriously, less than one percent of an increase in state taxes will amount to a billion and a half extra dollars, money that can be spread around to help everyone. Honestly, these millionaires know that without the hardworking middle class, they would never have made their money, since no one would have bought what they were selling. And if you are just an inheritance baby, then well, pay up. This is an interconnected society, and this is the least we can do.

Glenn Beck Wants To Tongue Ron Paul?

Parents, shield your children's eyes, everyone else remember to swallow the coffee before reading this or else the monitor will be splattered because when it comes to Glenn Beck, he can always catch the audience off-guard (perhaps thats what he hardly has much of an audience). The Beckster invited libertarian Republican candidate Ron Paul on the show and he really got Glenn's rocks off, semi-literally that is.

From Crooks and Liars:

Download (577) | Play (697) Download (420) | Play (345) (h/t Bill)

Warning: Do not view this clip within one hour of eating, as it may induce severe gastrointestinal distress and/or vomiting.

Ron Paul joins Glenn Beck to further his platform of eliminating taxes and the IRS. I’ll leave aside the fact that a presidential candidate is endorsing citizens break existing laws as a “reasonable civil disobedience” and merely point out that while I think everyone can get behind not having our taxes go to wasteful projects like the black hole of the Iraq occupation or bridges to nowhere, our taxes also pay for a lot of really good things as well–like federal infrastructure, education and health care for seniors and veterans, and I can’t believe people could have spent the last seven years with the Bush Administration and not see the value of keeping those programs funded.

But piddly little details like that do not bother Glenn Beck. In fact, Beck finds himself quite aroused by Ron Paul.

GB: What is your proposal?

RP: Mine is to get rid of the IRS and not replacing it with anything by cutting a lot of spending, because we lived without an income tax before 1913, so I’m not interested in the flat tax or the…or the sales tax. Although anything would be better.

GB: Yeah. Just what you’re saying. I mean, you’re speaking, you’re speaking…you know. If we weren’t both men…you know. I’d like to french kiss you on the whole abolishing the IRS thing… You had me at hello.

I seriously do not want to hear about Glenn Beck french kissing on TV, whether its Dina Sansing, Ron Paul or anyone else. You would think Glenn could show a little respect to the candidate, even if he is for abolishing our modern way of life (at least after 1913).

More Dishonesty From The NY Statehouse: IRS Steps In

NY State Legislators are notorious for dipping their hands in the taxpayers cookie jar. Usually it works by writing favors into law and giving government contracts to their friends favorite donors. Now it seems that our representatives up in Albany are trying to short the state by taking inappropriate tax deductions on their income.

Apparently a $79,500 base salary is not enough for them while they work a few months out of the year. Technically they can take deductions for business expenses for up to 122 days, in reality deductions are being taken for well over 200 days.

From the NY Post:

ALBANY - State lawmakers could be on the hook for tens of thousands of dollars each in back taxes for wrongly claiming deductions related to their job, sources said.

In a letter that has sent shivers through the entire Legislature, the IRS recently formally alerted lawmakers of the problem.

Lawmakers were given 45 days to review their 2004 and 2005 returns and repay any amounts owed without penalty.

Under federal law, legislators are able to take a deduction for "ordinary and necessary business expenses" each day while away from home for the legislative session.

Technically, the Legislature gavels into session each day whether lawmakers convene or not.