Governor Paterson, Have You Lost Your Moral Compass?

The obscenity continues in America. The economy is destroyed -- short-term and long-term -- by incompetents and greedy people. But, it's regular people who had nothing to do with this disaster who take the hit. And now we have the governor of New York blessing the disaster by taking aim at workers and letting the rich of the hook.

The "liberal Democratic" governor in New York produces a budget that hits the poor and the middle-class but does not ask for higher taxes on the richest one percent of the population -- the people who have made off with hundreds of billions of dollars in the past decade. Instead, the state is proposing to cut pensions:

Gov. David A. Paterson on Tuesday proposed a steep rollback of some of the generous pension benefits that have been an alluring feature of government work for decades, initiating a contentious reckoning with public employee unions.

The governor is proposing to reduce benefits for newly hired state and municipal workers, including those in New York City, by placing them in a new pension category. The New York City portion of the plan was developed by Mayor Michael R. Bloomberg.

"We've made too many promises and asked for too few sacrifices," the governor said during an address to the Legislature. "We're going to have to change our culture as we know it."

The pension proposal was part of an austerity budget unveiled by Mr. Paterson.

With all due respect, Governor, have you lost your mind and your moral compass? You think that working 20 or 25 or 30 years in a job as a cop or a firefighter is not making a sacrifice? How many times have politicians rushed, to get the maximum p.r. value for their own careers, to the site of a fire or a shooting, where a cop or firefighter has died, and spouted the words "the ultimate sacrifice"... but now you are saying these people, when they survive the day-to-day grind and threats on the job, that they don't get to have a decent pension so they can live out the rest of their lives in some semblance of dignity and respect?

And exactly where in your moral frame of reference can you point to regular workers and say they have not sacrificed enough, compared to the people who you refuse to ask to sacrifice -- the richest one percent in our state?

We could wipe out the budget deficit -- or, certainly trim it down to something trivial -- by raising taxes on the very wealthy and going back to a more progressive taxation system that we had in the 1970s. You know this: if the state replaced the existing rate structure (consisting of 5 brackets with rates ranging from 4.0 to 6.85%) with one consisting of 14 brackets with rates ranging from 2.0 to 15.0%, we could bring in $6-7 billion more, and perhaps as high as $11 billion.

Under this plan, 95 percent of the state's taxpayers -- 95 percent of the people -- would receive a tax cut. Like the proposals championed by President-elect Barack Obama, a more progressive taxation system would be easing the burden on the people who are the most at risk in our economically troubled times. The top one percent of taxpayers -- whose average income is $2.685 million -- would see their taxes go up about 5.4 percent. The four percent below that top one percent -- those people whose average income is $326,000 -- would have their taxes rise 1.4 percent. In fact, the top five percent would have their dues burden slightly reduced because higher state taxes would lower their federal obligations.

Everyone else would realize a reduction in their taxes.

You want to talk about sacrifice? Over the past 30 years, workers have sweated their asses off, becoming more productive, laboring harder than ever. Their wages have not kept pace with that productivity -- if it had, the MINIMUM WAGE would be over $19-an-hour. The geniuses running our economy -- Robert Rubin et al. -- somehow didn't learn something basic in economics: if you want people to have money to spend (and since consumer spending accounts for 70 percent of our economic activity), you have to give them money in their pockets.

Well, they didn't get the wage increases. They sacrificed -- so that CEOs (who presumably donate to your election campaigns) could pocket tens of millions of dollars in pay, stock options and PENSIONS. Because of that wage robbery -- that is the only word that fits when you look at the taking of the sweat of the brow with no fair return -- people had to borrow the American Dream. Not own it. Borrow it--either by using credit cards or draining equity from their homes. That is gone.

And you say workers haven't sacrificed?

I've heard this demand calling for "sacrifice" and an end to "generous wages" before. The pundits, Republicans and economic wizards are demanding that auto workers give up "generous" pensions to save the auto industry. Of course, none of the people demanding that sacrifice have actually worked in an auto plant -- if they did they wouldn't be able to wave around their arms in such indignation at the "generous" wages and pensions because their arms would hurt too much, their shoulders would probably be disable or their tendons would ache so badly from the years and years of factory work. So much for meritocracy in America -- the people who fail continue to have jobs and get paid, while the people who had no say in the failure have to pay for it. Ain't America great?

And how, exactly, Governor, after you have cut peoples' pensions, do you think people will be able to spend money to prop up the economy once they retire? The debt-driven Ponzi scheme is over. So, Governor, are we going to replace decent pensions with coupons for Wal-Mart because that's basically the only place people will be able to shop -- and work.

Let's look at the Alice-in-Wonderland, Orwellian framing of this challenge: we have a shortfall in the budget because we've destroyed a progressive tax system, in the state and across the nation, and let an elite enrich themselves -- the same elite that has incompetently run the economy so that for three decades real wages have declined while workers pay for scandal after scandal (the savings and loan crisis, the Internet bubble, the housing bubble and on and on...).

And you ask for no sacrifice from the elite and demand all the sacrifice from those people who had no hand in the economic crisis we face?

Governor, have you lost your moral compass?

Comments

[waxybaby]

It's obvious that all Paterson cares about is his re-election bid and the rich who will support him. Why else would he try to take care of this on the backs of low and middle class people? His assertion that the wealthy will leave if he raises taxes on them has been proven false in other states. Economists from every institution have argued that this is what he should do. I'm a democrat but I really want to see a strong republican, someone from the business community, come in and get him out of this state. He's worse than Pataki and I didn't think that was possible.

[Blue in NH]

So, will Little Stevie Paterson cave in....stay tuned

[EKD]

He also wants to raise the taxes on gas. This is the first time in months I have been able to go to the grocery store and afford to buy some decent, healthy food. The price of gas goes down for a few days and HE trys to figure out a way to take it right back up. My thermostat is set at 60 degrees. Mr Patterson, how warm is your home? And do you use your food money to put gas in your car just to go buy some food that you cannot afford?

[camper65]

The only valid question on the pension issue is: are the reductions in benefits retroactive? If not, then newbies signing on to a new system willingly have no complaint!

[RPLinNYC]

Great post. Thank you.

[Keith52]

I think it's a crime to cut education budgets. Sorry, but it's really worth the red ink. Everything else "trickles down" from a good education. This is really a short sighted fix. No PUN intended.

[VikingQuest]

Can you show me a single document that shows that an increase in public school budgets translates to better education or test scores?

I think it is a crime that in many places it is more expensive to send a kid to 2nd grade than it is college.

Nationwide, public school districts spent an average of $8,701 per student on elementary and secondary education in the 2005 fiscal year.

New York, which also came in highest last year, spent $14,119 per student, followed by New Jersey at $13,800

[DeniseD]

I want to know where the money is going. My kids go to a school that was built in 1964 and has not had one improvement made in all that time. Why do our kids consistently score lower on tests than kids from other countries? Something is seriously wrong here.

[camper65]

Detroit has the 2nd most expensive school system in the country, yet 25% of high school freshmen won't graduate. I suppose your answer is to throw more money at the problem. A definition of insanity - doing the same thing over and over again expecting a different outcome. Madness!!

[VikingQuest]

Like I said, people who have no clue say schools are underfunded and that is the problem.

Schools in the city get more money than in the burbs but yet the schools in the city are terrible at everything, except basketball.

[permanentstudent]

Mr. Tasini,

I voted very happily for you in 2006 against Hillary. Please run a true progressive counter-attack against Patterson in 2010!!! PLEASE!!! Someone has to fight this man!!!

The man makes me ill. He has no idea what the hell he is doing. He's swinging an axe around trying to make a budget cut and he can't find the right things to cut. I think he should be taking aim at the state legislature specifically and their massively huge staff, perks, and call it in votes/work days. Oh that's right when he took over we heard he was friends with the legislature which was supposed to be a relief from Spitzer. It is not! I want the FUC%ING steamroller back over this guy who won't dare say an ill word against our lazy, stupid and utterly useless state legislature.

So again - please run!

permanentstudent

[Jp2]

This is an auto workers generous pension. Twenty five hundred a month.When he gets to social security age they have what they call the carve out. If your social security is $1200.00 a month than your pension is cut to $1300.00.So you still get $2,500.00 a month.Figure 3% inflation for ten years and you lose 30% of your purchasing power.If you live to 20 years after you retire your losing 60% of your purchasing power. Unlike congress that has cost of living built into their pensions.So after 6-8 years of retirement they make more money than when they were working.

[drumz]

where do you get this crap? did you add in all the perks that congress gets???

[apingebrig]

I'm sorry, but you're absolutely wrong. There are almost NO private sector jobs that have pensions anymore, so why should all public sector jobs be guaranteed pensions? Pensions should not be cut for people who are relying on them, but for new hires, they absolutely should NOT be guaranteed a pension.

Yes, several jobs are underpaid, especially soldiers. However, unless you want crushing taxes, this is what has to be done - and the reason why they call it public "service."

[permanentstudent]

Let race to the bottom! How about we look at public pensions as what is deserved from private sector too. It was the standard once upon a time. Then CEOS and shareholders decided it was "too expensive." People have been suckered into believing it is true. CEOs wanted 20% profit margins instead of reasonable profits.

Pensions were replaced by 401k's which turned employees into their own enemies. They have to suck up what the CEO says because it's their 401k that needs share price increases which rely on huge profit gains every quarter. Everyone has been duped. Now 401k's don't look so pretty.

I hope you win the race to the bottom so you can enjoy shopping + working at Wal-Mart for the rest of your life as wages and benefits get slashed (oh less wages equal less social security income over the course of a lifetime too). Then the CEOs cant get 20% profits to line their pockets + force the sacrifices down on employees.

Oh, public "service" - when did we last go to DMV and hate it? If workers had respect for their job, talented people with life skills would be more interested in holding that position rather than be forced over to the private sector for respect. Less wages + benefits and anyone left who is talented in public sector will leave. Then we'll really be left with a bunch of idiots who don't know how to run the government - as our legislators have proven

[hippynanainblingland]

"...so why should all public sector jobs be guaranteed pensions?"

You mean like senators, congressmen, governors, presidents, etc.? Yes, indeed, why should them be guaranteed pensions?

"However, unless you want crushing taxes, this is what has to be done - and the reason why they call it public "service.""

Indeed. About those pesky crushing taxes, just cut the Pentagon's annual take in half, and we'd be able to afford those pensions... and universal health care, and infrastructure repair, and education systems repairs, and the greening of America...

Anyway, there's a better way to deal with taxes. Go to fairtax.org and educate yourself about a much better way.

[WhoneedsGoverment]

I think we're all so tired of just talking about it.
You make great points.

It's hard to follow the money when we are blinded.

.

[Jenzig]

Gov Paterson has asked many times for the legislature to meet and come up with ideas to cut spending and they can't come up with any ways to trim! He's been asking this for several months. I think his proposal is a way to force their hands to come up with something.

I live in Upstate NY, and it's a very expensive state to live in. We have the highest tax rate of the states. I'm afraid with these proposals, we'll drive more people and businesses out.

It's a sad day when you increase taxes on movie tickets and cable television. This is the only way we can afford to entertain ourselves and they are already outrageously priced.

[VikingQuest]

"Gov Paterson has asked many times for the legislature to meet and come up with ideas to cut spending and they can't come up with any ways to trim"

That is because they all vote on feelings and are finding out there isn't an endless amount of money to fund the few that are on costly entitlement programs.

It isn't rocket science, look at their budget . . . government can't grow at that rate and support everyone.

[Samalabear]

Upstate has gotten bad, yes. Have you seen Long Island. I think we're now considered the most unaffordable area of the country to live in, according to one study I read. New York has gotten screwed by both sides -- Republicans and Democrats -- for too long.

A chilling blog, to say the least -- hitting the nail right on the head. We already don't go to the movies because we have cable -- there's nothing Hollywood can offer that is good enough that you can't wait -- and that includes everything. Now the last thing we have left is cable and the package includes the internet, which my family depends on for sending and getting work.

[permanentstudent]

I think this is the biggest downfall of New York. We keep getting stuck in the "no but really, look at how it is down here!" or "up here we've had our plants shut down for thirty years!" We are still one state so let's tackle these issues together.

In Albany we are being squeezed to death by property taxes too, though relative to what is happening in Long Island. Our entire state is broken - not just one side, one region or one part.

We have to band together and cut the nonsense from our legislators who seem perfectly happy to abandon good legislation because of such discourse. As an upstater I don't care the least if a downstater is my governor or senator. Just so long as they work towards fixing all of New York. Patterson and the state leaders are doing nothing for US at all. Nothing.

[Nofsdad]

Come on out to California and check out what the Republicans are doing to public education, the elderly, the children, the working poor, the sick... That's been the pattern out here for decades... at least since the Reagan days, Any attempt to cut spending or bring the budget under control rests squarely on the backs of those least able to bear the brunt.

Why would you expect it to be any different in any other state?

[VikingQuest]

California is $30+ billion in the hole because they can't say no to any additional spending.

[writerjohnny]

If the top 5% in California paid 15% that 30 billion would dissapear immediately. Further, all the super-rich, because that is what they are, probably wouldn't have lost billions in Maddof's ponzi scheme. Win/win!

[notalibatall]

And the Dems can/could stop everything you say the GOP is pushing.

Current California Senate
-24 democrats
-15 republicans

California state house of reps:
-51 democrats
-29 republicans

The GOP is in the minority in California. As they have been for awhile AFAIK. So, if these things do happen, a good portion of the Dems need to go along with it.

[LeonBNJ]

These proposals may be a way to get the public angry enough to support changes in taxation to get more from the rich. Get the masses angry about all these proposals, them calling for the rejection of them and telling the politicans to get it from the rich. Perhaps there should be a larger rate of tax on the sale of real property and co-ops with a value of over $500,000 to discourage run ups in prices and if they can afford millions for a new house, they can afford 10's of 1000's more in taxes.

[VikingQuest]

"We've made too many promises"

This is the key phrase . . . it will relate at the federal level pretty soon when SS & Medicare cuts have to be made.

[drumz]

Thanks to YOUR republicants

[VikingQuest]

WTF would you call Medicare?

$53 trillion with a T in unfunded liabilities?

[VikingQuest]

I'm sorry but even Democrats (not liberals) know that when it comes to having to balance a budget with FACTS instead of FEELINGS it gets tough.

Look at almost any state or federal budget, they took on costs they knew they couldn't pay for but they did it any ways because of feelings. Sooner or later it catches up with you.