Millionaires' Tax Resolution

WHEREAS, the Poughkeepsie Journal reported last December 25th on a Quinnipiac poll showing that 84 percent of New Yorkers support a millionaires' tax, including over 70 percent of registered Republican voters; this confirms many other polls last year with similar results on this issue, and

WHEREAS, the Wall Street Journal has reported that 98 percent of small business owners make less than $250,000 a year; according to the Small Business Administration, "businesses with fewer than 20 employees account for 90 percent of all U.S. firms and are responsible for more than 97 percent of all new jobs, according to a new report by the Small Business Administration," and

WHEREAS, Dutchess Outreach, Interfaith Impact of NYS, Interfaith Alliance of NYS, NYS Child Care Coordinating Council, NYS Community Action Association, NYS Coalition Against Domestic Violence, NYS Alliance for Retired Americans, NYS Senior Action Council, NYS AFL-CIO, Hunger Action Network of NYS, MicroBizNewYork, Nutrition Consortium of NYS, Capital Area Council of Churches, Albany Presbytery, Faith and Hunger Network of NYS, FOCUS Churches of Albany, Leviticus 25:23 Alternative Fund, Inc., Lutheran Statewide Advocacy, Regional Synod of Albany, Reformed Church in America, Office of Justice and Peace, Sierra Club Atlantic Chapter, Environmental Advocates of New York State, Citizens Environmental Coalition, and Citizen Action of NYS, all support a millionaires' tax, and

WHEREAS, unless our state's tax system truly becomes more fair and progressive, there will not be enough revenue from the state to Dutchess County and all municipalities to avoid draconian budget cuts or punishing local property tax hikes, and

WHEREAS, middle class New Yorkers now pay twice as much of their income in state and local taxes than do millionaires according to the Institute on Taxation and Economic Policy, and top state income tax rates for the wealthiest have been reduced from 15.375% to 6.85% over the last 25 years according to the NYS Division of Budget, and

WHEREAS, a Princeton University study showed that an increase in New Jersey's top income tax rate in 2004 did not adversely affect the number of high earners choosing to live there, and the tax increases on high-income earners put in place in 2003 did not have the negative impact on the state's economy, or on the number of high-income taxpayers in the state, that Governor Pataki predicted in vetoing the Legislature's budget bills, and

WHEREAS, in fact, the number of high-income returns grew steadily from about 245,000 in 2002 to an estimated 430,000 in 2007, and employment in the state increased each year that the temporary surcharge was in place; the wealthiest New Yorkers (over $200,000) also saw their incomes increase 108% between 2003-2008; those below $200,000 only saw an increase of 15% over the same time period, and

WHEREAS, according to Nobel Prize winning economist Joseph Stiglitz, "it is better for state's economy to increase taxes on the wealthy rather than to cut spending on goods and services purchased locally," and 120 economists from across New York (including many from Dutchess County) wrote to the governor in December telling him "economic theory and historical experience (shows) it is economically preferable to raise taxes on those with high incomes than to cut state expenditures," and

WHEREAS, high earners typically spend only a fraction of their income in any given year, saving the rest; on the other hand, state spending employs workers, provides services and puts money in the hands of New Yorkers in need, all of which put money in circulation, priming the economic pump, and

WHEREAS, Gov. Paterson's budget proposal shows that the top 5 percent of New York taxpayers had 59 percent of all income in the state in 2006, one and a half times the combined income of everyone else; if one puts this together with the income numbers from 2002, and with the budget's projections for 2009, a curious picture emerges, and

WHEREAS, even allowing for some slippage in high incomes in the recession, all of the income growth between 2002 and 2009 will go to the wealthiest 5 percent; the other 95 percent of households taken together will have about the same income this year as in 2002 (without adjusting for inflation); the incomes of the top 5 percent will have doubled over that period, a $200 billion income gain, and therefore be it

RESOLVED, that the Dutchess County Legislature requests that our state legislature pass and our Governor sign into law legislation reforming our state's tax system to make it more fair and progressive, increasing taxes on millionaires to avoid cuts to crucial services here in Dutchess County and local property tax hikes, and be it further

RESOLVED, that a copy of this resolution be sent to Governor David Paterson, State Senators Vincent Leibell and Stephen Saland, and Assemblymembers Greg Ball, Kevin Cahill, Joel Miller, Marcus Molinaro, and Frank Skartados.