Category: News and Opinion

Social Security: The Generational Betrayal

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Nearly 25 years ago those running the federal government made my generation, and those after, a promise: pay a vastly higher payroll tax throughout your lives and accept a later retirement age, and Social Security will be there to keep you out of poverty in your later years. That promise was made by the eight Republicans and seven Democrats, appointed by President Reagan, who made up the 1982 National Commission on Social Security Reform, by the Congress that adopted its recommendations, and by the President who signed them into law in 1983. That Commission, now long forgotten, was headed by Alan Greenspan. The payroll tax increase has been especially burdensome, since this is a tax that hits you harder the less you earn, and the higher rate has coincided with an era in which the distribution of income has become more unequal in any event. Those my age know they will not be allowed to collect Social Security until age 67, rather than age 65. Yet despite all the additional money that has been paid, and the benefit reductions imposed, to “save Social Security,” the truth is that Social Security was not saved. What has happened is a generational betrayal.

Are High Commercial Property Taxes Hurting the NYC Economy?

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New York City is known as a place with low property taxes, thanks to its virtually unique sky-high local income taxes. Yet there is one class of property for which the city’s property taxes are not low – commercial buildings without special tax breaks. While it has many liabilities, the property tax has one key advantage – it is hard to hide the asset being taxed, and difficult for it to move to a lower-taxed jurisdiction. But like trees, commercial buildings do move slowly over decades as new ones are built in some places and not built in others, while old ones are torn down or converted when they become obsolete. Does this have a negative effect on the New York City economy? We may be about to find out the answer.

Adoption and 2008

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In an article on The Politico website about the problems that Republican Presidential candidates are having with the abortion issue, Rudy Giuliani’s spokesperson says something interesting –

“He presided over a decline of abortions, promoted adoption as a real alternative and saw adoptions increase and abortions decrease,” says Comella.

It’s true that the abortion rate went down in the country and New York City during the Clinton years which largely paralled the Giuliani administration. But I don’t remember any city sponsored drives to promote adoption instead of abortion. Does anybody out there think this really happened?

Moving The Presidential Primary

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A number of states, including New York and New Jersey are considering moving up their Presidential Primary dates to early February.

Those supporting the move in all these states are doing so for a reason that makes sense – giving their state’s voters more of a say in picking the next president.

But in a few states – New York, Illinois and Kansas, pols have said they have another motive. That is helping the presidential candidate(s) from their state.

Do We Get More By Paying More?

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In response to yet another demonstration that New York City residents pay above average state and local taxes, Mayor Bloomberg told the New York Post that “New Yorkers pay more taxes because they get more services.” But if you tabulate how much New York City spends on different type of services, as share of its personal income, you see that isn’t really so. The Independent Budget Office shows that the local share of Medicaid and welfare, which most places don’t have to pay, jacks up New York City’s taxes, in part because our Medicaid program is so expensive, in part because having a local share shifts the burden of the poor to those who live and work near them. That’s us.

School Choice and Stress

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The New York Times had an interesting article today on school choice within the public schools. “Under Mr. Klein, choice has increased exponentially,” the Times said. “Giving people choices is always empowering and almost always will lead to better outcomes for kids,” the Chancellor is quoted as saying. “Choices could indicate when an undesirable school should close.” Yet far from feeling empowered, parents are feeling frantic according to the newspaper. And less affluent, low income parents and their children will be left behind. Why? One sentence captures the problem. “While some parents say they are thrilled to have such a rich menu of options, others complain that it is the schools — not families — who do the choosing.” That’s the reality. The limited, though hopefully growing (some who post here say no) number of schools were a decent education is on offer are deciding which children they will deign to educate. Or it is being decided by chance, or other procedures. The other schools aren’t going to close. They are going to get the kids who aren’t accepted or who lose the lottery.

New York’s Taxes and 2008

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I'm confused.

The City's Independent Budget Office has released a report stating that New York City residents pay much higher state and local taxes than residents of any other city in the US.

How can this be possible?

From 1994 until 2002, wasn't our Mayor a conservative and a tax cutter? Didn't he cut the welfare rolls and refuse to cave into unions. Isn't he the natural heir to Ronald Reagan. Doesn't his conservative fiscal policy mean that Republican primary voters should vote for him despite his views on social issues?

Can Fred Siegel, Steve Malanga, the other folk at the Manhattan Institute, the editorial writers at the NY Post and NY Sun explain how this could have happened?

The 40th City Council District: A Post-Special Election- Analysis (Part I of II)

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I am going to save the heavy stuff for part two of this article. You know: the deep stuff; the in-depth analysis and so forth. The kind of heady stuff that will get me in trouble (as usual), because I am sure some feathers will be ruffled; the kind of behind the scenes stuff that most of you like. You know what I am talking about: the “national enquirer” kind of stuff. The stuff I held back on during the campaign. The stuff I save for the political crack-heads.

Firstly, I must take some credit for the fact that I was the first blogger in the city, to bring attention to the Haitian-American agenda of political-empowerment through this special election. It was rough road all the way, but in the end the mission was accomplished. Congratulations are in order; not just for Mr. Matthieu Eugene (some are saying “Una-gene”), but also for those in that community who have been crying out for empowerment over the years.

Inflation Adjustment and Political Power

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Among the Medicaid budget cuts Governor Spitzer has proposed, and the hospital and nursing home industries are gearing up to fight, is a rate freeze for 2007 in place of the automatic inflation adjustment these industries would otherwise be entitled to. In the past, whenever the state budget has been tight, these industries have received more money automatically, while other needs and concerns, whose increases (or even avoidance of decreases) must be approved each year, have been forced to fight over whatever money is left. Medicaid also has gotten the first bite of the apple at the local government level, as payments to the state are mandatory. By taking away the automatic increase, Governor Spitzer would not disadvantage hospitals and nursing homes in the future, when the state might be facing fiscal problems. He would merely put them in the same position that public schools, transportation, and other public services have always been in — with no guarantees, and thus forced to compete equally in surplus or shortage.