By Scott Brinton
Roughly 60 people turned out for a news conference/protest that the Working Families Party convened in the shadow of the Nassau County Supreme Court in Mineola Feb. 20.
"The Fair Tax Plan," said American Civil Liberties Union lawyer Don Shaffer, would raise $289 million in new revenue for the county through a "progressive," 1-percent tax on household income between $150,000 and $200,000 and 2 percent on any income above $200,000.
Also in the plan would be an across-the-board, 20-percent reduction in the county portion of property owners' tax bills.
Right now, Nassau is staring down a $428-million deficit in its annual $2.3-billion budget by 2005 and a $172-million hole by year's end.
Suozzi is under increasing pressure to provide a blueprint for solving the financial crisis by the April 1 deadline set by the Nassau Interim Finance Authority, the state-mandated fiscal oversight board.
Suozzi has not taken an official position on an income tax, except that he would consider all options when drafting his county financial plan, said Louise Tripoli, his spokesperson.
Of the income tax, she said, "It is among the many items that are on the table for consideration."
Richard Kessel of Merrick, a NIFA board member and chairman of the Long Island Power Authority, said the finance authority hasn't drawn any conclusions about an income tax. "We are not going to take a position on any specific revenue enhancement," Kessel said. "We're awaiting a full, comprehensive, four-year plan from the Suozzi administration. If it includes an income tax, we'll review that."
Arguments for the tax
The "Campaign for a Fair Tax Plan" represents such diverse groups as the Working Families Party, Long Island Progressive Coalition, Civil Service Employees Association, Painters and Allied Trades union, Sewanhaka Federation of Teachers and the St. Martha Social Ministry, among others.
Lisa Tyson of North Bellmore, associate director of the Massapequa-based Progressive Coalition, said last Wednesday's news conference was a first step in sending a message to Suozzi that a surcharge for higher-income residents should be included in his financial plan.
The hope now, Tyson said, is that grass-roots support for such a
surcharge will grow countywide.
Michael Sheridan, 37, of East Meadow, said taxes should be based on "ability to pay."
Sheridan, a personal trainer, noted that property taxes must be paid, whether a resident can afford them or not. An income tax, on the other hand, recognizes that not all residents--particularly the elderly on fixed incomes and the poor--can pay Nassau's continually rising property taxes, he said.
Joe Marziotto, 75, a retired TWA aircraft technician, said he now receives two-thirds of the annual $40,000 salary he earned after working 40 years for Trans World Airlines. A property tax, he said, is a heavy burden for a senior like him to bear on an income that never increases. He's concerned about keeping his modest Elmont Cape Cod.
Marziotto, who once ran for state Assembly, said that under the "Fair Tax Plan, "I don't have to worry."
Dr. James Krivo, a dermatologist from Franklin Square, said of the plan: "It's not more taxes. It's making the taxes more just."
Ann Mallouk of Garden City said she would be among the 9 percent of Nassau County residents who would pay the income tax. "I support the Fair Tax Plan. This is a responsible, common-sense solution that balances the budget without slashing services for Nassau's families and children," she said.
Arguments against the tax
An income tax for Nassau, though, appears to stand little chance of passing the county Legislature, even if Suozzi were to propose it in his four-year plan.
Earlier this month, county Legis. Lisanne Altmann (D-Great Neck) floated the idea of a 1-percent tax on household income above $100,000 to the media. The Legislature's nine-member Republican caucus immediately came out against the proposal, as did most of the 10 Democrats.
Additionally, Albany insiders say an income tax for Nassau hasn't even a slim chance of passing the state Legislature during an election year when lawmakers fear being labeled "tax and spend." Ultimately, an income tax would require approval by not only the Legislature, but also Gov. George Pataki.
David Denenberg (D-Merrick) is among the county legislators who stand against an income tax. He said he opposes creating any new tax without eliminating one.
He also fears that an income-tax surcharge would cause wealthier people and businesses "to think twice" about moving to Nassau County, and he believes their tax dollars are needed to support the local economy.
New York City and Yonkers charge an income tax, but outlying suburban areas in Westchester and New Jersey do not. Upper-income residents who work in the City might choose to settle down in those areas instead of Nassau to avoid the income tax. Business owners might even locate their firms elsewhere.
At first blush, Denenberg said, an income tax appears to provide tax relief for lower-income residents. He, however, said they would be forced to pick up a greater share of the tax burden without wealthier residents and businesses.
"Poor people would be in worse shape if there were no rich people," Denenberg said. "Who's paying the majority of taxes?"
Denenberg also noted that, once in place, the income tax could be increased at any time.
Francis Becker (R-Lynbrook) also opposes an income tax. He said the county first has to cut expenses before looking to tax residents. "We have to get our house in order as far as expenses, specifically labor contracts. These things have to be in order before we consider a new tax," he said.
County's other options
Denenberg said that County Executive Suozzi, even before elected this past November, had laid out a plan to save Nassau County $100 million annually by:
oConsolidating services and offices.
oImproving the county's use of technology to increase efficiency.
oNegotiating leaner contracts with the unions, most notably the police contract.
oAnd taking advantage of a court-ordered reassessment of Nassau's property-tax rolls, which is expected to save the county tens of millions of dollars annually as it will have to fight far fewer tax-certiorari cases.
Denenberg would also like to see Nassau's Hub, the business district surrounding Veterans Memorial Coliseum, better developed to attract more businesses and bring in greater tax revenues.
