Legislative Memorandum In Support Of A
Common -Sense Budget That Invests In New York

February 2003

Interfaith IMPACT of New York State is a statewide advocacy organization representing Protestant, Unitarian Universalist, and Reform Jewish congregations and individuals. We address emerging public policies and their legislative implications from our shared faith traditions which derive, from the historic teachings of our faith in God and humankind, and which call upon all people to participate in the ongoing work of perfecting the world. We speak for great numbers of New Yorkers who support the raising of revenue as proposed in "A Common-sense Budget that Invests in New York Families."

Our supporters know that massive cuts in the state budget will translate into a combination of increased taxes at the local level and deterioration of essential services in education, health care, transportation, security, and jobs. There is a better way that won't disproportionately penalize average working families.

To grow New York's economy we need to invest in New Yorkers. Good jobs require educated New Yorkers, safe communities, affordable health care and reliable transportation.

Cuts in education, health care and other essential services hurt us all. When the State cuts funding for education, for health care, for children and seniors and families, and for the environment, real people are hurt.

Instead of hiking local property and sales taxes we need a state tax system that's fair to working families. When Albany cuts the state budget, local property and sales taxes soar. Cuts in state spending on schools, health care and other essential services are shifted to local taxpayers who can least afford it.

Instead of shifting spending on to local taxpayers,the State should:
- Capture a portion of the federal tax windfall. If you earn $300,000 a year, you'll be getting a tax break of around $5,000 from the federal government in 2003. A modest, temporary NY state tax increase on the portions of family incomes above $100,000 could raise up to $3 billion to help solve the state's budget crisis and avoid damaging reductions in services. And state tax is a deduction on federal income tax which reduces the actual cost.

- Close the loopholes that allow big corporations to avoid paying taxes on profits they earn in New York. Corporate taxes account for only 4% of the state budget, down from 10% in 1977. New York law allows companies to use accounting tricks to avoid paying taxes on what they earn in New York. Closing the loopholes would raise $1.5 billion.

- Tell the federal government to help states recover from the recession and September 11th. The Governor and State Legislature should pressure Washington to increase federal payments for Medicaid and economic recovery.

A common-sense budget invests in New York's families.

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