Category: News and Opinion

As I was standing amidst the overflowing garbage on the boardwalk on Coney Island on July 4^th, which the oft-downsized Parks Department can apparently no longer afford to pick up (the trash bins in Prospect Park were not emptied on Monday July 3^rd either), and watching the police recruits, who will be replaced by those with so little ability that they cannot get a job for more than $25,000 per year, I wished more people were aware of the importance of the 2000 pension deal, which in an instant transferred $billions to retired and about to retire public employees from our then-future, now present.  As long as the benefits for the insiders, and cost to the rest, are separated by a few years in time, most people do not notice the connection.  They are vaguely dissatisfied, but they don’t understand why.  The ongoing losses to our quality of life are “inevitable.”  Now, it seems, more “inevitable” losses may be coming.

Now that the slot machines are shut down, the majority of people who don’t read the newspapers may have noticed that New Jersey, the richest state in the country, a state that therefore has a low social service burden and a large tax base, is nonetheless bankrupt.  Some may be wondering how this could have happened.  The answer is that the State of New Jersey has pursued many of the future-destroying policies of the State of New York, but to a greater extent and with a lower tax rate.

The City and State of New York reduced their contributions to their employee pension funds, allowed employees with 10 or more year’s seniority to stop contributing themselves, and drastically increased benefits by adding an inflation adjustment that was retroactive for those already retired.  As a result, required pension contributions have soared, leading to year after year of service reductions and higher taxes.  Moreover, some of the additional contributions New York City will be forced to make have been deferred, leading to even greater contributions in the future.  We’ll start paying for some of the 2000 pension deal in 2010.

Now that the slot machines are shut down, the majority of people who don’t read the newspapers may have noticed that New Jersey, the richest state in the country, a state that therefore has a low social service burden and a large tax base, is nonetheless bankrupt.  Some may be wondering how this could have happened.  The answer is that the State of New Jersey has pursued many of the future-destroying policies of the State of New York, but to a greater extent and with a lower tax rate.

The City and State of New York reduced their contributions to their employee pension funds, allowed employees with 10 or more year’s seniority to stop contributing themselves, and drastically increased benefits by adding an inflation adjustment that was retroactive for those already retired.  As a result, required pension contributions have soared, leading to year after year of service reductions and higher taxes.  Moreover, some of the additional contributions New York City will be forced to make have been deferred, leading to even greater contributions in the future.  We’ll start paying for some of the 2000 pension deal in 2010.

Now that the slot machines are shut down, the majority of people who don’t read the newspapers may have noticed that New Jersey, the richest state in the country, a state that therefore has a low social service burden and a large tax base, is nonetheless bankrupt.  Some may be wondering how this could have happened.  The answer is that the State of New Jersey has pursued many of the future-destroying policies of the State of New York, but to a greater extent and with a lower tax rate.

The City and State of New York reduced their contributions to their employee pension funds, allowed employees with 10 or more year’s seniority to stop contributing themselves, and drastically increased benefits by adding an inflation adjustment that was retroactive for those already retired.  As a result, required pension contributions have soared, leading to year after year of service reductions and higher taxes.  Moreover, some of the additional contributions New York City will be forced to make have been deferred, leading to even greater contributions in the future.  We’ll start paying for some of the 2000 pension deal in 2010.

Now that the slot machines are shut down, the majority of people who don’t read the newspapers may have noticed that New Jersey, the richest state in the country, a state that therefore has a low social service burden and a large tax base, is nonetheless bankrupt.  Some may be wondering how this could have happened.  The answer is that the State of New Jersey has pursued many of the future-destroying policies of the State of New York, but to a greater extent and with a lower tax rate.

The City and State of New York reduced their contributions to their employee pension funds, allowed employees with 10 or more year’s seniority to stop contributing themselves, and drastically increased benefits by adding an inflation adjustment that was retroactive for those already retired.  As a result, required pension contributions have soared, leading to year after year of service reductions and higher taxes.  Moreover, some of the additional contributions New York City will be forced to make have been deferred, leading to even greater contributions in the future.  We’ll start paying for some of the 2000 pension deal in 2010.

Now that the slot machines are shut down, the majority of people who don’t read the newspapers may have noticed that New Jersey, the richest state in the country, a state that therefore has a low social service burden and a large tax base, is nonetheless bankrupt.  Some may be wondering how this could have happened.  The answer is that the State of New Jersey has pursued many of the future-destroying policies of the State of New York, but to a greater extent and with a lower tax rate.

The City and State of New York reduced their contributions to their employee pension funds, allowed employees with 10 or more year’s seniority to stop contributing themselves, and drastically increased benefits by adding an inflation adjustment that was retroactive for those already retired.  As a result, required pension contributions have soared, leading to year after year of service reductions and higher taxes.  Moreover, some of the additional contributions New York City will be forced to make have been deferred, leading to even greater contributions in the future.  We’ll start paying for some of the 2000 pension deal in 2010.

If you read my prior posts, you know that in Fiscal Year (FY) 2004 New York City residents paid an estimated $149.19 for every $1,000 of their personal income in state and local taxes, either directly or through the businesses they work in or patronize, and that the residents of the rest of New York State (the part outside New York City) paid $128.03.  This compares with a national average of $104.09.  And, you know that nearly the entire difference was accounted for by higher local taxes, since New York’s state taxes, at $62.12 per $1,000 of personal income, were just slightly higher than the national average of $60.83 per $1,000 (and New York State income tax payments by residents of Connecticut and New Jersey in part offsets that difference).  This is an overview of where that additional money goes.