Drawing A Line In New York

The present state of dysfunction that prevails in New York government is not the cause of our fiscal crisis. Rather, it is a reaction to the cumulative effect of years of reckless spending and ill conceived policies, born of self serving motives. These policies of big government spending and high business taxes have become synonymous with Albany politics. The precipice on which New York now finds itself, with deficits rising and revenue in decline, is a recipe for economic disaster. It has led to a legislative stalemate in which Republicans and Democrats have dug in their heels, refusing to budge on their principles. Republicans are unwilling to raise taxes while Democrats are loath to cut spending. These differing points of view represent long held convictions of both political parties and at present, are clearly and refreshingly visible. Seldom in Albany have philosophical lines been so clearly drawn and seldom have voters been able to discern so vividly the differing ideologies of their representatives. In November, the New York electorate will have the opportunity to determine which route they prefer to follow and they will cast their votes accordingly. An overview of the policies that have led to this legislative malaise may prove far more instructive in identifying New York’s economic deficiencies than merely focusing on governmental paralysis. The predicament in which New York presently finds itself is attributable to years of mismanaged government and fiscally unsound policies. It is these policies that must be addressed and understood if we are to achieve an economic recovery.
The American Legislative Exchange Council (ALEC) has rated New York as having the worst economic forecast of any state in the nation. The recent report titled “Rich States, Poor States” has its findings based on New York’s chronically high taxes, its excessive government spending and the size of its public sector workforce. New York’s taxpayer funded expenditures on Medicaid, pensions and education are among the highest in the nation, yet these programs consistently underperform. This is due mainly to inefficient management, widespread corruption and a system of promotion based on seniority rather than on merits.
With regard to the New York City school system, taxpayers supply $8.60 for every dollar that employees contribute to their pensions. This drastic disproportion between contributor and benefactor is typical of New York’s policies. The state is projected to spend $49.2 billion on Medicaid in 2010 alone, far more than any other state in the union. By law, the federal government matches all Medicaid funds provided for by a state. These federal funds act as incentives for states to expand their healthcare initiatives. New York politicians use a Keynesian logic to justify these funds as ‘free money’ and have expanded the program accordingly. Up to 30% of our next state budget will consist of Medicaid expenses.
The burden of funding these massive public programs has inevitably fallen upon the taxpayers. The Empire State’s 12.62% top marginal personal income tax rate and 15.95% top marginal corporate tax rate are the highest in the nation. These excessive tax rates have resulted in limited economic growth, lackluster job creation and diminishing capital investment. They have served as a catalyst for New York’s economic demise, resulting in the mass migration of its citizenry.
Throughout the course of 2000 to 2008, New York has experienced the largest loss of residents of any American state. We have witnessed a net migration outflow of 1.5 million people or 8% of our population since the onset of this decade. The migration of New Yorkers to more reasonably taxed locations has yielded a loss of revenue for the state and a loss of capital for investment. Our government inevitably makes up for this revenue shortfall by continually raising taxes.
These policies of excessive government spending coupled with chronically high taxation have resulted in a vicious and counterproductive cycle. The answer to fixing our current fiscal crisis lies not in passing a budget that will merely postpone the inevitable, but in the complete reformation of New York’s fiscal policy. As high taxes and excessive spending have resulted in the near economic collapse of our state, it is reasonable to assume that lower taxes and limited expenditures are the surest path to recovery. The initiation of such policies will not be an easy task. A drastic change in state strategy and leadership will be required to achieve such results.
The budgetary gridlock in the New York State Legislature may in fact be a blessing in disguise. By drawing a distinction among our representatives, based on core beliefs rather than on politics, voters are becoming better informed. A clear distinction of where the candidates stand is a rare New York commodity. This opportunity may prove to be the beginning of true reformation. Seldom have New Yorkers been granted the chance to genuinely affect state policy. Heretofore, the inmates have been running the asylum. It falls on the people to set the course of government by electing true representatives of the state. It is time for New Yorkers to draw a line in the sand and insist on a voice in their fate. We know where our representatives stand. We know what needs to be done. What is now required to effect real change is to remain alert, to keep well informed and to respectfully acknowledge and wisely utilize the enormous power of our vote.

Jeremy Pitcoff

The Second Law Of Thermodynamics

When something is broken in the natural world, action is required to fix it. Sometimes the remedy is as simple as tightening a screw, while some things are simply irreparable. In physics, the second law of thermodynamics dictates that the world becomes more disorderly with each passing second of time; that the universe is inexorably headed toward a permanent state of chaos. Physical objects, once broken, cannot regain their original integrity; they can only be reformed. This reformation, though leaving something to be desired in the world of physical properties, takes on a positive role in the theoretical world of government. The State of New York is broken and there is no screw presently utilized that is capable of securing its repair. The economy of the Empire State is headed toward a permanent state of chaos; a reformation of its current laws and regulations is the only hope for recovery.
New York’s state and local tax burden is rated as the 2nd highest in America. Our residents now pay $6,419 per capita in state and local taxes, equating to 11.7% of the average New York income. Our State has the 5th highest ranking in property taxes and has been deemed the 2nd least business friendly State with regard to corporate, sales, payroll, unemployment and commercial property taxes. Clearly these policies are directly related to New York’s current fiscal crisis and they must be addressed if our goal is to redeem the economy.
If the political leaders of New York would simply pass laws that would reduce the cost of doing business, job growth and investment would follow. The revenue lost by the diminished tax rates would be counteracted and expanded upon by an influx of company startups and the jobs they would necessarily create. All New Yorkers would benefit from business tax reductions. Additionally, a cap on property tax increases would prove most beneficial. Not only would this measure help to curb the disturbing trend of mortgage foreclosures that have become so prevalent on Long Island, but it would help to sustain New York’s population growth which, for decades, has been on the decline. These tax reductions, in conjunction with responsible spending, are the time tested reforms that New York desperately needs.
Obviously New York is broken and now is the time to fix it. Action is required to achieve this end but our current leadership has remained inanimate. Natural law dictates that a reformed physical object is chaotic in comparison to its original state of existence. However, the laws of Mother Nature can prove contrary to the laws of Government. Virtually every seat in our State’s government is up for grabs this November. Our representatives in Congress and the Senate will be subject to election as well. Voters must carefully scrutinize all candidates in order to ascertain who is responsible for New York’s current state of disorder and who will possess the courage and the fortitude to fight the status quo. While the second law of thermodynamics may be unavoidable in the world of physical properties, the chaos it implies and the disorder it necessitates need not apply to New York.
Jeremy Pitcoff
Smithtown Republican Committeeman

Changing Of The Guard

Most fair-minded Americans would now agree that the policies of the Obama Administration and, to a lesser extent, those of the second half of the Bush Administration, have been detrimental to the U.S. economy. The Keynesian theory that vast amounts of public spending can cure a faltering economy has been proven false and must be abandoned in order to resuscitate an asphyxiated U.S. dollar. A weak national currency, coupled with antipathy toward free-trade and an apparent malice toward the American private sector, has emerged as the cornerstone of American fiscal policy. The effects of these polices thus far: A 10% rate of unemployment, economic growth that is feeble at best, an unprecedented national debt and a general lack of public confidence in the competence of big government. With each passing day, the negative effects of these policies serve to further entrench the U.S. economy into a state of mediocrity. Recent statements made by President Obama and Treasury Secretary Timothy Geithner indicate a willingness to accept this mediocrity and to abandon the 235 year tradition of American exceptionalism. I, for one, refuse to accept this abandonment and I fervently pray that the upcoming Congress of 2011 will fill the void of American leadership that we are presently experiencing.

Three things must happen to reignite the American economy. It will take courage, conviction and strong leadership from both political parties to achieve this, but it is certainly within our grasp. The strength of the U.S. dollar must be reasserted, free and open trade must be initiated and the federal government must ease its grip on the American private sector. Though the methods of implementing these goals are open to debate, surely some common ground can be found. As we seek to develop new plans of reform that will permanently strengthen our nation, these three initiatives should be our legislature’s paramount goal in the aftermath of this year’s midterm elections.

1. Cut Spending: A 10% cut on all government spending, with the exception of defense and national emergencies, would instantly increase the strength of the U.S. dollar. Fiscal discipline, though a tough pill to swallow, is one that the American people are now willing to accept. In addition to adding value to the dollar, these spending cuts would help diminish our massive national debt and curb the increasing scope and power of our federal government.

2. Secure Free And Open Trade: American allies such as Colombia and South Korea have been trying for years to procure lasting trade agreements with the United States. Opening American markets to these emerging economic nations is a win/win situation for our country. Not only would this greatly benefit the American economy with an influx of new commercial opportunities, but it would also serve to further strengthen our military ties with these strategically significant nations.

3. Private Sector Growth: It is imperative that Congress pass new laws to release the American private sector from the chains of big government. Permanent corporate, investment and individual tax-cuts are surely the best incentives for American businesses to reestablish their ties to the U.S. market. Although a government run economy may serve to temporarily reduce the pressure on a small contingent of the population, it cannot create new wealth. Wealth and job creation are precisely what America presently needs. This can only be achieved, in a lasting and meaningful way, by the efforts of the private sector.

Just as it took two administrations and two political parties to place the American economy on its current path toward destruction, so now will it take new and virtuous leadership from both sides of the political aisle to reverse it. The greatest strength of America’s national character is in its ability to abruptly change course when necessary. We are a resilient people who recognize bad policies when we see them. Rival party factions and personal loyalties may sometimes cloud our judgment but, in the end, we all seek the same goal for our nation. Each generation of Americans feels an obligation to secure prosperity for its successors. This is a continuous cycle, uniquely American in character, and a testament to our exceptionalism. Though there are some in high office who disagree with this concept of inherent national exceptionalism, their views do not represent the majority of Americans. Most of us know that it is not too late for our country; that our best days are still ahead of us; that we remain the greatest and most benevolent nation ever to inhabit the Earth. To continue this greatness and to further improve the condition of humankind, a change in our present course will be required.

This November, a changing of the guard is necessary to implement the economic policies that will put us back on the track toward prosperity. New leaders must be elected who will place the needs of our nation above party loyalties and political high jinks. America needs to change the current course that is leading us toward a permanent state of mediocrity. The implementation of free-trade, deficit reduction and economic growth is the perfect place to start.


Jeremy Pitcoff
Smithtown Republican Committeeman

We Can Only Hold On For So Long

I am a small business owner in the state of New York. I am one of a dwindling number of my peers whose business has remained fully functional. I pay my bills and my workers on time and for the most part, I stay out of the red. My business, in terms relative to the dismal state of the economy, remains a successful enterprise. So how did I achieve this? How is my business one of a growing minority in New York that has managed to maintain its functionality? The answer is simple in theory, yet easier said than done. I have maintained this functionality by sacrificing my own prosperity.

For nearly two years, I have been working my traditional eighty hour work week while earning minimal profit for myself. During this period, I have consistently paid my employees more than I take home to my family. In September of 2008, at the beginning of the economic downturn, I made a conscious decision that I would not raise my prices while the economy was still in a state of fragility. This decision, I believe, has enabled me to retain my customer base. I chose to temporarily sacrifice my personal profit because of my belief in free market capitalism. I had assumed that the recession would create a period of economic cleansing which is sometimes necessary in an economy based on free enterprise. People would be forced to reign in their debts; there would be a brief period of economic austerity; then, in due time, the age old tradition of American ingenuity would lead us back to prosperity. For six months to a year, I presumed, I would have to tighten my family budget, perhaps dip into my savings, and soon enough my business would be bigger and more profitable than ever. But alas, this was not to be.

Beginning in January, 2009, government policies were systematically applied that amounted to an attack on the American private sector. The nearly $1 trillion in “stimulus” funds proved only to increase unemployment; the most massive entitlement program in American history was initiated in the guise of healthcare reform; the federal government proceeded to take over many formerly private industries; new taxes and regulations were applied to virtually every aspect of the economy. All of these measures, in eighteen short months, have devastated American business.

And how were these policies to be paid for? How does a nation riddled with debt and a 10% rate of unemployment justify this government expansion? Thousands of businesses, just like mine, are now being taxed beyond reason. Day by day and month by month, the burdens of big government are decreasing our ability to function. We cannot expand or create jobs under these conditions; we can merely do our best to survive. In January, 2011 the first round of Obama-Care taxes will be implemented and the Bush tax-cuts will expire. This will result in the largest tax increase on American business in the history of our great nation. We entrepreneurs, who have maintained functionality thus far, will be obliged to massively reduce our workforce. It will simply be a matter of survival. I write these words, not as a businessman complaining of my own economic hardship, but as a patriot with deep concern for my country. My experience is merely indicative of the private sector as a whole. Across this land, American industries are falling apart at the seams. The most frustrating aspect of this entire debacle is that it did not have to be this way.

Had our federal Congress and our Commander In Chief lowered, rather than raised our taxes at a time when we could least afford them, things may have turned out differently. Had they cut government spending rather than triple our national debt, unemployment may surely have been reduced. If the size and the scope of our federal government had been contracted, rather than expanded at a record pace, these warnings would not be necessary. The policies of American lawmakers, in the course of eighteen months, have resulted in a virtual public takeover. As the private sector is drowning in a sea of federal bureaucracy, the big government sharks smell blood. America’s job creators are gasping for air and the redistributionists are encircling them.

Free market capitalism is a fitting system for a nation rooted in freedom. If our federal government continues to infringe upon our constitutional right to the freedoms of commerce and of trade, what liberties will they seize upon next? Those who control the money, by default, control the people. A private sector economy necessitates a government beholden to its citizenry; a state run system, based on wealth distribution, contradicts the tenants of Americanism.

America needs new leadership; this is an incontrovertible truth. Without drastic change in our current fiscal policy, our economy will soon collapse. Tens of thousands of businessmen and women, just like me, cannot withstand much more. We have tried our best to keep our communities intact, but we can only hold on for so long.

Jeremy Pitcoff
Smithtown Republican Committeeman