49537185 Cmte Scam NY Exec Summary Feb2011

8/7/2019 49537185 Cmte Scam NY Exec Summary Feb2011

1/16

TheCommitteetoScamNewYork

HowTheCommitteetoSaveNewYorksBigBusinessElitesDodgeTaxes,Score

Handouts,GetBailedOut,andStillWantMore

PreparedbyKevinConnorandChrisKeeley,

PublicAccountabilityInitiative

forCommunityVoicesHeard(CVH)and

VoicesofCommunityActivistsandLeaders(VOCAL-NY)

February23,2011


2/16

WhoTheCommitteeSaysTheyAre

WHOWEARE: Wearecitizensandtaxpayerswhocaredeeplyaboutthefutureof

NewYorkStateasagreatplacetolive,workanddobusiness.

WHATWESTANDFOR: Westandforrestoringfiscalsanitytostategovernmentinorderto

ensurethatfuturegenerationsofNewYorkerswillhavetheopportunitytogetagreateducation,findagoodjoborstarta newbusinessandprosper.

WHATNEEDSTOHAPPEN:

ThegeneralpublicneedsavoiceintheefforttoendNewYorkStateshabitofspendingmoneywedonthaveanddrivingfamiliesandemployersoutofthestatewithhightaxesandinflexiblemandates.Thisstartswithapropertytaxcap,atrulybalancedstatebudgetandreformofprogramsandmandateswhereNew

Yorkisoutoflinewithreasonableandsustainablestandards.Source:http://www.letsfixalbany.org/about-us


3/16

WhoTheCommitteetoScamNY

ReallyIsBillionaires.Thereare13membersofForbes listofthe

Richest400Americans:StevenRoth,RupertMurdoch,

StephenSchwarzman,RichardLeFrak,JohnPaulson,StephenRoss,DavidRockefeller,MortimerZuckerman,JerrySpeyer,WilburRoss,HenryKravis,LeonardStern,andSheldonSolow.

Bigbusinesses.Citigroup,GeneralElectric,andrealestatefirmColliersInternationaleachhavethreerepresentativesinthegroup,morethananyotherbusiness.

Banks.GoldmanSachsandCitigroupeachhavefivepastorpresentexecutivesordirectorsassociatedwiththeCommitteesbackers,morethananyotherbusiness.

TheFed.TheFederalReserveBankofNewYorkhastiestofourmembersofthegroup,morethananyothergovernmentorganization.


4/16

WhoTheCommitteetoScamNY

ReallyIsNewYorkCityEconomicDevelopmentCorporation.KathrynWylde,the

PartnershipsCEOandaCommitteefounder,sitsontheboardofthecityseconomicdevelopmentagency,whichinturnapprovestaxbreaksandother

subsidiesforbusinesses.MarioPalumbo,aboardmemberoftheRealEstateBoardofNewYork,alsositsonNYCEDCs board.

EmpireStateDevelopmentCorporation.KenAdams,afounderoftheCommitteeandformerpresidentoftheBusinessCouncil,wasrecentlynominatedastheheadofESDC,thestatesprimaryeconomicdevelopmentagency.

LowerManhattanDevelopmentCorporation.REBNYboardmembersJohnZuccotti andWilliamRudin bothsitontheboardofLMDC,whichisresponsibleforoverseeinglowerManhattansreconstructioneffortspost9/11anddisbursingrecoveryfunds.

FederalReserveBankofNewYork.Itsnotastateorlocalgovernmentboard,butisoneofNewYorksmostpowerfulgovernmentinstitutions.Asnotedinthebailouts section,theFRBNYs boardincludesthreeboardmembersofthePartnership Wylde,JPMorganCEOJamieDimon,andLoewsCEOJamesTisch anditspresident,formerGoldmanSachseconomistWilliamDudley,holdsanexofficioboardseatatthePartnership.


5/16

CampaignContributorsStatewide(2007-2010);Legislative(2009-2010)

$7,277,220TOTAL

$2,503,333Allotherstate-level,mostrecentelectioncycle

$159,500DONOVAN2010

$196,655DEMOCRATICSENATECAMPAIGNCOMMITTEE- HOUSEKEEPING

$210,300NYSDEMOCRATICASSEMBLYCAMPAIGNCOMMITTEE(DACC)

$221,000SCHNEIDERMANFORATTORNEYGENERAL,INC.

$241,005NYSSENATEREPUBLICANCAMPAIGNCOMMITTEE- HOUSEKEEPING

$335,500NYSDEMOCRATICSENATECAMPAIGNCOMMITTEE

$336,548SPITZER2010,INC.

$397,500NYSSENATEREPUBLICANCAMPAIGNCOMMITTEE

$872,682PATERSONFORGOVERNOR,INC.

$1,803,196ANDREWCUOMO2010

TotalDonatedbyCommittee

Affiliates

Recipient


6/16

CommitteetoScamNY:ASummary

Taxevasion:Atleast1,705offshoresubsidiariesincorporatedintaxhavens.

13relatedfinancialfirmsreceived$149billioninfederalbailout funds(TARP),orroughlyenoughtofundNewYorkStatesentirepublicschoolsystemforthreeyears.

IndividualsassociatedwiththeCommitteewillsavemillionsinpersonalincometaxes ifthestatestaxonhigh-incomeearnersisnotextended.


7/16

TheCommitteetoScamNY

hasmorethan

400corporateentitiessetup

justintheCaymanIslands

TaxDodging


8/16

TaxDodging

1. MorganStanley(318)2. BankofAmerica(269)

3. NewsCorp(127)

4. Marsh&McLennan(122)

5. Pfizer(104)

6. JPMorganChase(76)7. WellsFargo(56)

8. JonesLangLasalle (56)

9. BlackstoneGroup(46)10.Tyco(42)

TheseCSNYgroupshavedozens,orevenhundredsofentitiesshelteredoverseas:


9/16

TheCommitteeshonorarychair,FelixRohatyn (left),isemployedatLazard,firstmajorWallStreetbanktoincorporateinan

offshoretaxhaven (Bermuda)

SeveralbusinessesassociatedwiththeCommitteeeither

specializinginfacilitatingtaxavoidancebywealthyindividualsandcorporations orhavebeenfinedfordoingso,

includingDeutscheBank,UBS,andRoberts&HollandLLP

TaxDodging


10/16

ScoringHandouts 13financialfirmsreceived$149billioninfederalbailoutfunds(TARP)duringthe2008financial

crisis,orroughlyenoughtofundNewYorkStatesentirepublicschoolsystemforthreeyears.

Committee-connectedbusinesseshavebeenapprovedforroughly$2billioninstateandlocalsubsidiesintheformoftaxbreaks,infrastructurespending,andotheroutlays.

IndividualsassociatedwiththeCommitteewillsavemillionsinpersonalincometaxes ifthestatestaxonhigh-incomeearnersisnot

extended.


11/16

MembersofTheCommitteetoSaveNYanditsaffiliated

entitieswantNewYorkStatetoserve

themandthem

alone,withjustcrumbsleftfor

everyoneelse.

CommitteetoScamNY


12/16

ConsequencesDuetolong-termpolicydecisions

thatTheCommitteetoScamNewYorkwantstocontinueandevenexpand,NewYork:

- IsAmericasmostunequalstate,

- Hasanincrediblyunfairtaxstructure,

- Corporationshavebeenpayingless,and

- Thepoorhavebeenpayingmore.


13/16

NewYork:

AmericasInequalityCapital

Source:FPIatwww.fiscalpolicy.org/FPI_NewYorkShouldContinueTheIncomeTax_20110214.pdf


14/16

TheWorstisGettingWorse

Source:FPIathttp://www.fiscalpolicy.org/FPIBudgetBriefingBook_2011.pdf.


15/16

ThePoorPayingMore

Source:FPIatwww.fiscalpolicy.org/FPI_NewYorkShouldContinueTheIncomeTax_20110214.pdf


16/16

CorporationsPayingLess

Source:FPIatwww.fiscalpolicy.org/FPI_GrowingBurdenOfBusinessTaxExpenditures.pdf

Documents

49537185 Cmte Scam NY Exec Summary Feb2011