The New York State United Teachers has unveiled another commercial in its expensive campaign for more state spending on education. The latest ad is pushing for the continuation of the 2009 income tax increase on upper incomes that is set to lapse at the end of this calendar year.

This so-called "millionaires tax" imposed a higher 7.85 percent tax rate on incomes of $200,000, and an 8.97 rate on $500,000 incomes and above. On January 1, 2012, both rates drop back to 6.85 percent, resulting in a revenue loss to the state of about $1 billion in the current fiscal year, and $4 billion on a full-year basis.

One billion dollars doesn't buy what it once did in New York, but the unions are overturning every rock they can find to finance more spending, and this revenue source is an obvious choice for them. The Chalkboard last month discussed this issue, so the overt push by NYSUT on the airwaves was certainly expected.

NYSUT and other large entities can purchase expensive and professionally polished ads, but the union should demand a refund for this one. It portrays a rich man chastising students, including telling them that they, as opposed to himself, need to "sacrifice."

Sophomoric Messaging
The ad strikes me as too sophomoric, and I suspect it will not have the bite NYSUT hopes. The old saw of "tax breaks for millionaires" doesn't carry the heft it once had given that it's been tried so often, yet it is never enough as higher spending demands never cease. In this information age, the public also is better informed as it's surrounded by news and information every time one logs onto their computer, waits at a train station, or watches late-night comedians, in addition to 24/7 cable tv news. Accordingly, the public is more skeptical of ads at a level that insults their intelligence.

In New York, taxes have taken a toll that has a greater bite on the middle class which, as Manhattan Assemblyman Micah Kellner reminded us, now comprises a much higher income, especially downstate, than it once did. Families making $200,000 in New York City do not consider themselves rich, much less "millionaires." Of course, people value public education, and are willing to pay substantially for it. But that, too, has its limits. A school tax cap, for example, had little chance of becoming law when then-Gov. George Pataki first proposed one in 1997. The very similar proposal by Gov. Andrew Cuomo today is certain to be adopted in some serious form, and already has passed the state Senate.

Andrew Cuomo is No Nelson Rockefeller - He Opposes Tax Hikes
Gov. Cuomo has made clear he opposes raising taxes, and is set to let these temporary tax hikes remain temporary, indeed, by expiring at year's end. He makes a compelling, yet simple argument borne out by New York history: higher taxes are self-defeating as they will continue to drive away productive New Yorkers and do economic harm. These kinds of policies especially damaged New York State's economy in the early 1970's, when then-Gov. Nelson Rockefeller had tax rates exceeding 15 percent on "the rich." High taxes didn't bring in the revenue to keep up with spending, and didn't prevent New York City's near bankruptcy; rather, they contributed to it.

Embracing Reform is a Better Way
Rather than dusting off the 70's-style drivel of tax-the-rich, teacher unions and all public education advocates need to embrace reforms and accountability, along with mandate relief, to have any credibility to demand more resources in this kind of negative fiscal environment. They can start by taking up Gov. Cuomo's call for mandate relief, and back the repeal of the last-in-first-out (LIFO) law being advanced by NYC Mayor Bloomberg.

Education supporters should consider that no politician is unwilling to spend more on education, if there is money in the kitty. But, trying to make more available in this economic climate may end up becoming more trouble than it's worth if doing so contributes to ongoing state economic problems that will put more downward pressure on education spending in subsequent years.

A lame ad that demands more from "the rich and powerful" is so yesterday. A broader outlook is needed.

Peter Murphy
for The Chalkboard
Twitter.com/PeterMurphy26
Facebook: Chalkboard Nycsa

FOLLOW-UP: E.J. McMahon of the Empire Center for NYS Policy subsequently posted this analysis of the NYSUT ad, with more detail on state tax policies toward the rich. Interestingly, it turns out there is at least one tax break for millionaires that NYSUT supports.