Millionaires to New York governor: make us pay higher taxes

A group of New York State millionaires has penned a letter to Governor Andrew Cuomo asking to be taxed more.

The letter, signed by more than 40 people, including well-known names such as Rockefeller and Disney, calls for a new tax plan where the rich contribute more to help pay for infrastructure projects and to help combat poverty and homelessness.

"As New Yorkers who have contributed to and benefited from the economic vibrancy of our state, we have both the ability and the responsibility to pay our fair share," reads the letter, "We can well afford to pay our current taxes, and we can afford to pay even more."

We've left our country with tremendous income inequality where the top wage earners pay lesser rates of tax than most of our middle classLeo Hindery Jr

One of the signatories is Leo Hindery Jr., managing Partner of InterMedia Partners, a New York-based media industry private equity fund. He tells As It Happens host Carol Off the tax system is unfair to the lower and middle class and top earners should pay their fair share.

"I'm willing to take quite a bit more (taxation)."

Hindery is willing, even though he says other members of the richest one-per cent of Americans believe his proposal is "... traitorous, they think it's horrible. The thought that they may actually have to pay their fair share of taxes, they find it abhorrent."

Hindery says the country stepped away from progressive taxation (where the tax rate increases as the taxable amount increases) during the administration of Ronald Reagan.

"We've left our country with tremendous income inequality where the top wage earners pay lesser rates of tax than most of our middle class … it's economically a real disaster for the future of our country."

The letter proposes a plan being dubbed "the 1% plan". It would create higher tax rates for those earning incomes $665,000 US or more.

Currently, single filers making more than $1,062,000 pay the state's top rate of 8.82 percent. Under the one-percent plan, the 8.82 rate would apply to anyone making $1 million to $2 million, and higher rates of 9.35 percent, 9.65 percent and 9.99 percent would apply to those making $2 million to $10 million, $10 million to $100 million and more than $100 million, respectively. (all figures US)

Are you going to go to Europe, which has progressive taxation ... are you going to go Canada which has it? If you can find a better tax system that works for your selfishness, go for it.- Leo Hindery Jr

Hindery believes in progressive taxation, which he says the U.S. embraced for nearly a century, "If you're going to live in this country and take advantage of what we give our citizens everyday, then you're obligated morally, in my opinion, to abide by a progressive tax system," says Hindery.

Hindery says he should be taxed more at the federal level as well, where he currently estimates he pays rates as low as 15% on his income,

"Upwards of $50 - $80 Billion (US) would come in to the U.S. Treasury if we taxed all levels of income at the high end at more progressive rates" says Hindery.

Critics of higher taxes argue that it will force people and their money to flee the country, but Hindery wonders where they will go.

"Are you going to go to Europe, which has progressive taxation ... are you going to go Canada which has it? If you can find a better tax system that works for your selfishness, go for it."

The plan Hindery's group is proposing will face some battles. The state Democrats already have a millionaire tax plan of their own in the works and state Republicans have spoken out against any plan to further tax the people of New York.

With files from AP

Full text of the letter:

Dear Governor Cuomo and Legislative Leaders,

We are upper‐income New Yorkers who treasure the quality of life in our state.

However, we are deeply concerned that too many New Yorkers are struggling economically, and the state's ailing infrastructure is in desperate need of attention.

We cannot afford to ignore these challenges. As business leaders and investors, we know that the long-term stability and growth of a company requires investments in both its human capital and physical infrastructure. The same is true for our state.

It is a shameful fact that child poverty in New York State is at a record level, exceeding 50% in some of our urban centers. New York State has a record number of homeless families – more than 80,000 people – struggling to survive across the state. And far too many adults in our state do not have the work skills needed for the 21st century economy.

Now is the time to invest in the long-term economic viability of New York. We need to invest in pathways out of poverty and up the economic ladder for all of our fellow citizens, including strong public education from pre-K to college. And, we need to invest in the fragile bridges, tunnels, waterlines, public buildings, and roads that we all depend on.

These human and physical infrastructure investments will pay off in the creation of new jobs, a workforce prepared to fill them, and a reduction in the extreme income inequality that currently exists in our state.

The question is: how do we pay for those investments? In the spirit of shared sacrifice, we, the undersigned, call for a balanced solution that includes maintaining, expanding, and making permanent the top marginal income tax rates for upper-income New Yorkers like us who can afford to pay more. Specifically, we urge the governor and the legislature to implement the 1% Plan for New York Tax Fairness, which calls for new marginal rates of 7.65%, 8.82%, 9.35%, 9.65% and 9.99% for brackets starting at $665,000 (the top 1% of earners in our state), $1 million, $2 million, $10 million and $100 million, respectively. We also urge our elected leaders to make permanent the lower tax rates for working families, ranging from 4% to 6.85%, before they expire next year.

If the temporary tax rates at all levels are allowed to expire, it will mean a $1 billion dollar tax increase for middle class families and a $3.7 billion dollar windfall tax cut for millionaires like us.

As New Yorkers who have contributed to and benefited from the economic vibrancy of our state, we have both the ability and the responsibility to pay our fair share. We can well afford to pay our current taxes, and we can afford to pay even more. Our state needs to invest this revenue in our struggling schools, in antipoverty measures and in infrastructure improvements. Our state's long-term economic prosperity depends on strong investments in our people and our communities.

Everyone does better when everyone does better. We urge Governor Cuomo and the New York state legislature to expand the current millionaires tax and ensure that upper-income New Yorkers like us keep doing their part to invest in our state.

Sonia Alexander, NYC * Elyse Arnow-Brill, Joshua Arnow, Pound Ridge * Roy Berberich, Mineola * Polly Cleveland and Thomas Haines, NYC * Arthur Cornfield, NYC * Louis B. Cullman and Louise Hirshfeld Cullman, NYC * Pierce Delahunt, NYC * Anne Delaney, NYC * Abigail Disney, NYC * Barbara Fleischman, NYC * Sarah Frank, NYC * Rosemary Faulkner, NYC * Elspeth Gilmore, NYC * Steven and Mary Goldring, NYC * Agnes Gund, NYC * Catherine Gund, NYC * Leo Hindery Jr., NYC * Polly Howell & Eric Werthman, Glenford * Marion Hunt, NYC * Craig Kaplan & Anne Hess, NYC * Dal LaMagna, NYC * Ruth and David A. Levine, NYC * Michael A. and Ann Ross Loeb, NYC * Joshua Mailman, NYC * James and Jacqueline Mann, Mt Kisco, NYC * Mark Nelkin, NYC * Jan Nicholson, NYC * Susan Ochshorn and Marc I. Gross, NYC * Richard Perl, NYC * Seth Perlman, NYC * Karen Pittelman, NYC * Mark Reed, NYC * Steven C. Rockefeller, NYC * Darius A. Ross, NYC * Martin Rothenburg, Syracuse * Lindsay Shea, Germantown * Daniel A. Simon, NYC * Lynn Stern, NYC * Jessie Spector, NYC * Sarah Stranahan, NYC * Peter Strugatz, East Hampton