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by Andrea Batista Schlesinger

Why Mike should keep his tax cut


A coworker complained to me the other day. We're New Yorkers, so that's nothing new. But this story stuck with me.

Her husband wanted to take their child to the public library in their upper Manhattan neighborhood on a Wednesday afternoon, but he couldn't. Why? Because their local branch is only open five days a week.

This past week, Mayor Bloomberg delivered his State of the City address. He was glowing as he began his speech and, I have to admit, I was proud as I listened. We have come pretty far these last five years - tackling seemingly overwhelming challenges like 9/11 economic recovery and public school accountability.

But then he started talking about tax cuts. The economy had done better than expected, Bloomberg said, and he wanted to share the wealth by returning funds to their rightful owners. So, presto! One billion dollars would return to our hands by eliminating the sales tax on clothing, cutting property taxes by 5% over the next year, and continuing the $400 property tax rebate.

Sure, the cuts will help ordinary New Yorkers somewhat - but businesses, from investment banks and real estate trusts (big property owners) to department stores, will be the big winners.

Maybe coming from another Republican, like George Bush, it would have made sense to hear about "tax relief," that coded term that implies that taxes, no matter how necessary, are a burden. But this is Bloomberg, who in 2002 asked us to shoulder an 18.5% hike in the property tax because "taxes and frugality are far better than crime, filth and abandonment." He knew then that taxes were part of an equation in which government provides the services that we all rely on.

Yes, things have improved since 2002, but is our work done? Hardly. So with all due respect, Mayor Bloomberg, you can keep your tax cut. I'm still holding out for a stronger city.

Pay for entry-level police officers is so low - $25,100 - that we are having trouble recruiting top talent to combat crime and guard against terror threats. Pay for teachers is still too low to consistently attract the quality people we need to staff the reforms that Bloomberg continues to propose. And no, that won't be solved with a wave of the wand from the Campaign for Fiscal Equity lawsuit.

We lag when it comes to getting our kids the preschool they need. Last year, Council Speaker Christine Quinn asked for money to provide full-day preschool for the 34,000 4-year-olds now in half-day programs. The administration agreed to fund just 2,000 seats.

New Yorkers don't evaluate their experience of being New Yorkers by their tax bills alone. In fact, given nine choices in a March 2006 Marist poll for what should be the top priority for Bloomberg's second term, voters ranked taxes eighth. New Yorkers want their schools to be improved, their police to be trained, and - yes - their libraries to be open. And guess what progress on those fronts demands: a little thing called money.

I know, I know. High taxes make New York City less "competitive." But what kind of competition is won when New Yorkers don't feel good about the city they live in?
 

Andrea Batista Schlesinger
January 21, 2007

Executive Director of the Drum Major Institute for Public Policy