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FOR IMMEDIATE RELEASE
March 7, 2017
UUP: Expand millionaires’ tax; close unfair loophole
With President Donald Trump set to cut funding for the poor and reduce taxes for the rich as part of his pledge to repeal and replace the Affordable Care Act, the time is now for New York to expand its so-called millionaires’ tax and close the carried interest loophole.
“We have a president who pays lip service to lower- and middle-class working families while making real, unfair policy changes that will put more dollars in the pockets of the rich and the super-rich,” said United University Professions President Frederick E. Kowal, Ph.D. “We cannot allow that to happen, especially in New York.
“Renewing and expanding the millionaires’ tax and ending the carried interest loophole—which has allowed elite investment fund managers to grow wealthy while paying lower tax rates than many business owners—is right for New York and right for America.”
Closing the carried interest loophole is a matter of fairness, said Kowal. The loophole allows investment managers to pay taxes on their profit shares at the capital gains rate instead of regular income tax rates—which could more than double their tax bills.
Kowal, who leads America’s largest higher education union, applauded a plan by the governor and Assembly and Senate Democrats to expand the millionaires’ tax by creating new tax brackets for those earning $1 million or more.
The change would generate more than $5 billion for the state, which Kowal said should be invested in education and used to help bolster SUNY’s underfunded public hospitals—which face a potential influx of millions of patients who would be left without health insurance if the GOP’s new ACA bill is approved.
SUNY’s public hospitals — at Brooklyn, Stony Brook and Syracuse—accept all patients who walk through their doors, whether or not they can afford to pay. UUP’s new ad campaign, which kicked off March 6, calls on the state to support and invest in SUNY’s hospitals. You can view the ad on UUP’s website at www.uupinfo.org.
Kowal criticized the GOP’s bill to repeal and replace the ACA, which slashes federal funding to states that provide coverage to poor, older adults through Medicaid and reduces financial assistance for low-income Americans looking to purchase health insurance.
At the same time, it benefits the upper-middle class and the rich through expanded health insurance subsidies and in tax-free health savings and flexible spending accounts.
“The latest plan by Trump and Republicans to repeal and replace Obamacare is a travesty,” Kowal said. “If passed, this bill will rob millions of Americans of their health insurance coverage, leaving them without coverage and having to fend for themselves.”
UUP is the nation's largest higher education union, with more than 42,000 academic and professional faculty and retirees. UUP members work at 29 New York state-operated campuses, including SUNY’s public teaching hospitals and health science centers in Brooklyn, Long Island and Syracuse. It is an affiliate of NYSUT, the American Federation of Teachers, the National Education Association, and the AFL-CIO.
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