Yonkers Council Democrats Support the Largest Tax Hike in New York History
By RON MATTEN

Ron Matten Archives, Book Reviews, Campaign Trail, Finance, Governance, History, Political Analysis, Politics 26 Comments

Yonkers City Council President Republican endorsed Candidate Ron Matten. Learn more at: www.Ron4Yonkers.com

YONKERS, NY— March 31, 2021 —  On Monday. March 29th, the Yonkers City Council Democrats, led by Council President Khader voted in support of the largest tax hike in New York State history. The poorly worded resolution is ripe with inaccuracies and exaggeration. This SuperTax Plan is composed of six bills designed to confiscate $50 billion dollars from New York’s economy.

It raises the tax rates on annual incomes of $300,000. Yonkers is only one of two municipalities in the state that have a personal income tax. The Yonkers income tax rate is 16.75% of your New York State tax obligation. This just makes it more expensive to live in New York State and Yonkers. The result would be an exodus of high-income earners from Yonkers and the State, resulting in less revenue over time.

The second proposed catastrophe would be to add a tax surcharge on capital gains. The federal government taxes capital gains at a lower rate than ordinary income. The justification for this is that the dividends paid to shareholders (owners) have already been taxed once and an investment yield does not consider inflation created by the Federal Reserve. The Democrats on our council are in support of a surcharge to make the federal capital gains rate equal to the earned income rate. Seniors would be negatively impacted, as they receive investment income into retirement. The rich would ensure that they spend less than 183 days in New York, qualifying as nonresidents and preserving their income.

Our democratic friends in the council are in support of raising the inheritance tax. This is in addition to the estate tax. Basically, they are demanding that the heir pay tax on inheritances over $2 million. This could include a childhood home or assets on a family business. How do you avoid the onerous tax? You simply leave the state.

How many times can you tax a dollar of income? If it were up to the democratic council members, at least twice. The resolution supports a wealth tax. This wealth tax would be a tax on assets including stock, bonds, and corporate ownership. How does one avoid a penalty for being successful? Move to Florida, Texas, or Nevada.

The Council Democrats support adding a New York State surcharge to New York businesses to raise their federal tax rates to pre-Trump rates. I remind you that pre-Trump, the US had the second highest corporate tax rates on the globe. But this new rate would only impact corporations in New York State. Why would a corporation want to stay in NY and pay a 14% surcharge? How many jobs would a 14% surcharge cost the State?

And finally, our council friends would like to add a transaction tax on every Wall Street trade. I should remind you that our pensions, 401Ks, and retirement accounts are funded through stock and bond holdings. A fund trades these assets to provide the best returns for retirees. This would also increase the spreads on the small investor, making trading less profitable. Our friends would have you believe that the middle class does not trade stocks and bonds.

This short-sighted resolution supports legislation designed to cause the wealthiest taxpayers and job producers to leave the State. This is not the “Invest in our New York Act,” but “The Exodus of our New Yorkers Act.” It is estimated that $34 billion in income already left the area during 2020.

New York State is receiving $50 billion in rescue funds. The State’s fund balance is actually $8.5 billion higher than last year, and revenues are up over projections, without the rescue package. New York State does not have a revenue problem, but a spending problem, which is generally the case with one party rule.

This proposal would give New York City residents the highest tax burden in the nation. Yonkers, the only other municipality in the State with a personal income tax would not be far behind.

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Ronald Matten is the Republican endorsed candidate for Yonkers City Council President. He resides in the City of Yonkers.

Ron MattenYonkers Council Democrats Support the Largest Tax Hike in New York History
By RON MATTEN

Comments 26

  1. All, “You can’t get blood out of a stone”, is the old saying. To stem these reactionary, harebrained proposals, let’s put the emphasis on Mayor Spano’s housing initiatives to INCREASE, not DECREASE our 200,000 population. We have Target in County Center, we have Lionsgate on target to build a studio by the river. Etc! Our population has been at 200,000 for a long time. Let’s grow it and thereby
    increase our tax base, and hopefully, keep our well off citizens from relocating. Let common sense prevail. Meanwhile, we will have to be very careful in our spending, until the pandemic is under control. Together, we will prevail. “Yonkers is booming”! Not to worry.

    1. I hear your voice often. I hear your jealousy of Zehy’s success and knowledge of politcal campaigns. He produces winners. You simply can’t get over the fact that he paid his time in jail and has moved on. This lack of compassion on your part and so may others has kept Yonkers from reaching greater heights. It s time to forgive. Kindly, Hezi

      1. I agree, nick spano and Zehy both paid time for their mistakes. And they are better then ever, Yonkers is lucky to have them.

  2. Both the Republicans and Democrats refuse to follow the constitution. We are all equal and a corporation is a person and has the same rights. How ever corporations pay a federal tax rate of 21% and the peasants pay 35%. This is unconstitutional, period. Politicians cannot pluck a figure out of their asses and say those above this threshold should pay this and those below that only pay this, it’s illegal.
    The only way to implement this is a FLAT TAX. What a flat tax would do is institute a fair system and not have corporate welfare, with write off for everything. We also need a means testing and an audit for those on welfare programs. Too many not getting married, co-habiting and claiming a raft of benefits. This should also apply kids, you cannot just have kids and use them as cash cows,

    Flat Tax please and I’m sure if the Yonkers income tax was challenged it would also be illegal as you cannot be charged a tax based on where you live. This also applies to congestion tolls which are also arbitrary. If you go here you pay this and the money will be given to the MTA which, like most government agencies needs private corporation type accountability. This is robbing Peter to pay Paul.

    Neither Party will ever enforce the corporation because Republicans want to give the wealthy and Democrats tax and spend to give to their base on welfare, why do you think Biden has the position he has on the border, it’s to grow the Dems voter base.

    Politicans are to stupid to put in charge of our taxes.

  3. Greed really should be classified as a mental illness.

    Earning $300,000+ each year puts you in the 2% of earners in our country. 98% of Americans make less than you. The number is lower in NYS and Yonkers.

    Only 6% of American *households* make $300,000 or more each year. The number is lower in NYS and Yonkers.

    It’s time to end welfare for the wealthy. Let’s have a city, state, and country for the 98% once again.

      1. You mean socialism for the rich.

        You’re perfectly entitled to think that catering to the needs of the 2% at the expense of 98% of the population is normal.

        Since you’re predisposed to labels, I have one for you: mentally ill.

        1. As this data visualization clearly shows, the top 1% pay much more than taxpayers of any other income level.
          It is almost double as much as the next bracket of top incomes: those earning the 2% to 5% of the highest wages in America pay 20.5% of all Federal Income Tax. Or in absolute terms: $281.51 billion.
          It is also almost four times as much as those whose incomes range from the top 6% to 10%. They pay 10.9% of Federal Income Tax, or $149.97 billion.
          Those who earn between the top 10% to 25% of wages in America are a much larger group; yet their collective input into the Federal Income Tax is only half as much again as the previous band: 15.9% (i.e. $281.55 billion).
          Those with an income anywhere between the top 25% and 50% only pay 10.5% of all Federal Income Tax, no more than $143.95 billion.
          The entire bottom half of wage earners pays only 2.8% of its income in taxes into the federal coffers. In actual money terms: $37.74 billion. That is more than 14 times less than the top 1%, even though this group is 50 times as numerous.

  4. Great article – Ron. Nice to see an application of reason and common sense within a dense political jungle of distorted ideas. God bless and good luck!!

  5. Why would anyone move out of New York? Look at all that’s been accomplished? We’ve legalized gambling and we have more casinos on the way. Bail reform has allowed violent recidivist criminals to get back out on the street immediately. NYPD will be all but non-existent in the next few years. Now, we can look forward to legalized marijuana and higher taxes! It’s a liberal’s paradise.

  6. maybe you should all take a deep breath and consider what has happened tax wise over the past 40 years…eg since Ronald Reagan ran in 1980 on the Kemp Roth tax cut fallacy….That was a back of the napkin computation by so called economist Arthur Laffer who drew the “laffer curve” which was premised on cutting taxes and the concomitant result of “rising revenues” to the FederalGovernment as a result of the “increase in productivity” and GDP supposedly generated by those tax cuts….AND GUESS WHAT……it never happened…didn’t happen under Reagan who had to raise taxes mid his two terms leaving Bush sr with no choice but to raise them again….Then W cut taxes too also the result was sold as a revenue raising measure…guess what once again deficits abounded..and in W’s case the biggest financial crisis since 1929 requiring Barack Obama to clean up the mess….And then finally Donald John Trump sold the same bullshit and lowered tax rates on the wealthiest and on corporations…his good buddies…only to result in the biggest deficits in history. So what have we learned from these three major mistakes in fiscal policy? YOU CAN’T CUT TAXES AND EXPECT TO GET IT BACK FROM INCREASED REVENUES…all you do when you decrease revenue to the federal government is to guarantee that at some point down the road you will run out of money for necessary projects like medical care fighting a pandemic infrastructure social security and medicare….Now those of you who continue to scream “socialist” at the mention of tax hikes are watching too much Sean Hannity…because when you raise taxes only on those making 400,000 a year or more as the Biden plan does and only at the margin you are simply undoing the bullshit Laffer curve nonsense that has put the US behind the rest of the western world in providing for its citizens…Our infrastructure is on the verge of antiquity….roads and bridges are going to fail…tunnels will fail as well…Look at China everything is new new new…because they spend spend spend to keep up..rather than postponing spending on necessary new projects…If you live in a house and the house has leaks in the roof if you ignore those leaks you will lose your roof…Conservatives can no longer complain about deficits..that ship sailed with Trump spending trillions on his tax cuts…They no longer have credibility…So sit back and give Biden a chance to undue the problems created by 40 years of being sold a bill of goods on the benefits of tax cuts…and I don’t want to denigrate anyone regardless of their income but I am betting that the number of yonkers residents making in excess of 300,000 is di minimus….

    1. The author is specifically discussing New York State’s plan to tax the rich until they leave and how the Dems love it. They are punishing people for earning money.

  7. It’s not surprising about the taxes; look what is going on with the Federal Government and the new Commander In Chief. The current Council President wants to move further to the left of his primary opponents and appeal to the union hierarchy which is still strong in the city of Yonkers. (Teamsters, Local 32BJ etc.)

  8. Here’s an idea Ronny boy..you leave the City of Yonkers and the state…while you are at it leave the country because with us Dems in charge you loser Reps are gonna be miserable…for a long time..have a nice day!

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