Raise taxes on the rich

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Raise taxes on the rich for the well-being of all New Yorkers

by Morris Pearl

It’s budget season again in New York. While all the billion-dollar numbers being thrown around may seem impenetrable for the average New Yorker, nothing is more central to the day-to-day experience and concerns of both rich residents and those who have to work for a living than our state budget.

Do you care about living in a state that has good schools for all of its children? Do you care about clean water to drink and clean air to breathe? Do you care about everyone having internet access and affordable childcare and the COVID vaccine? Then you care about the state budget. So do I.

The budget is about what we value as a community. The question we face now is what do our lawmakers — the ones who write the budget — value? Do they value the same things you and I do? Or do they value putting another $7 billion in Michael Bloomberg’s pocket? (That’s how much his wealth has grown just during the pandemic.)

For the new budget, the state Legislature introduced a bill that would raise about $7 billion in new taxes on the wealthy. Some may think that’s too much. But as a wealthy New Yorker, I say it’s not enough. Albany should be taxing me and my peers even more.

To do this, state legislators should pass the Invest in Our New York Act, a set of proposals that raise $50 billion by taxing the wealthiest people in our state. It includes the following:

  • Tax high incomes at higher rates. Right now the top 1 percent pay the lowest share of their income in state and local taxes. This proposal will raise $12 billion to $18 billion.

  • Tax capital gains so that the income rich people make on their wealth is taxed as much as the income normal people make from their jobs. This proposal will raise $7 billion.

  • Institute an heirs tax so wealthy people pay taxes on money they inherit rather than earn. It will raise $8 billion.

  • Institute a billionaires tax, which will raise $23 billion in the first year and $1.3 billion a year after that.

  • Levy a Wall Street tax, which will place a small tax on financial transactions on Wall Street as they do in other global financial centers and as we did here until the ‘80s. This will raise $12 billion to $29 billion.

  • Restore the corporate tax that Trump’s irresponsible tax bill slashed at the federal level. This will raise $9 billion.

Taxes are public investments in the things that make our community stronger and promote opportunity for each one of us to thrive. Millionaires and billionaires couldn’t exist without public investments in electricity and internet, roads and bridges, security and health, education and training — investments that create a thriving middle class and economic stability.

It’s only right for us to expect them to give back to support those investments. And it’s in their own best interest. Living in a state with a few extremely rich people and a lot of poor people isn’t good for anyone, including rich people.

Take it from me, I’m a millionaire.

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