June worked for me. Many years ago. We worked for a company owned by Harry. And Harry came out with a number of changes that would save money for the company. Problem is they would harm our workers. My job was to explain the many details of the changes — to a gathering of our […]
June worked for me. Many years ago. We worked for a company owned by Harry. And Harry came out with a number of changes that would save money for the company. Problem is they would harm our workers.
My job was to explain the many details of the changes — to a gathering of our employees. I laid out the whys and wherefores — the reasons behind each change.
“Whoa,” June said. “Enough of this crap. The only reason for these changes is that Harry is one cheap SOB.”
I closed my folder and flicked off the slide projector. “I think you nailed it, June.” Truth. Applause.
More truth: Years ago, a married couple asked me to advise them. They earned good money. But they had gone bankrupt twice, and were nearly bankrupt again.
I listed 30 ways they could reduce their spending. Sell a few vehicles, I suggested. Take fewer vacations. They came up with good reasons to reject every one of these recommendations, all 30. In the end, I folded my file. I scrawled five words of truth across a pad and slid it toward them: You spend too damned much.
What is the truth about New York State? Why do we lose so many good people? Why do our businesses struggle, especially Upstate? Why do our schools, cities, and towns struggle? Why are parts of our infrastructure dilapidated?
Our politicians offer us a blizzard of reasons. Every government department explains. Yadda, yadda, yadda.
Here are a few truths that cut through the crap. New York State spends too much. It is that simple. To cover that spending it has to tax its people and businesses too much. We whine about high taxes. But there is a glaring reason we have high taxes. New York spends like that bankrupt couple. So, New York must tax heavily, to cover its ridiculous spending.
If anyone suggests we cut back, the squeals of pain erupt. Maybe you squealed as well.
Take education. New York could not possibly cut back on spending on our dear pupils. Gov. Cuomo proposed adding a billion more dollars in the latest budget. Well, New York already spends 90 percent more per student than the national average. It spends nearly double what the average state spends per student. Yet it cannot find ways to cut that spending?
Consider our state budget: New York has 10 million fewer people than Texas. Yet it spends $60 billion more annually. And it runs three times as much debt as Texas. Because the Empire State has had to borrow so much more — to cover its ridiculous spending.
New York also has to tax us punitively — to cover its spending excesses. Texas taxes gas at 20 cents per gallon. New York taxes gas at 61 cents a gallon. Texas taxes cigarettes at $1.41 per pack, New York charges $4.35.
New York taxes income and heavily. It starts at 4 percent and runs up to 8.8 percent on upper income folks. Texas levies no income tax.
New York splits hairs. It tells us why it cannot reduce any of its spending. It explains away its obvious stupidity. Just as I tried to explain away Harry’s cheapness. The state can offer a thousand reasons why it must spend so much money. Just as that bankrupt couple did.
But the state cannot escape a brutal truth: It spends too damned much.
New York is just about the top-spending state in the union. Try suggesting to its politicians that they cut 5 percent of spending, across the board. If the state outspends virtually all other states, surely we must run a bit of fat. Surely, we could find a few places to save.
Nah. Cannot be done. Nope.
And since it won’t cut spending, the state government must tax, tax, and tax some more. We camouflage and hide the taxes. We sugar-coat them. But we are desperate for money to pay for our ridiculous spending. Desperate because we cannot break our spending habits. We are addicted.
I use “we” at this point for a good reason. If New York ever really slashed its outrageous spending, we would howl. You can’t touch our school budget; Where are the grants for restoring our main street?; These kids will go hungry if the state cuts back, etc. etc.
Few of us can really handle the truth.
From Tom…as in Morgan.
Tom Morgan writes about political, financial, and other subjects from his home in upstate New York. Contact him at tomasinmorgan@yahoo.com, read more of his writing at tomasinmorgan.com, or find him on Facebook.