Schumer: Tax the rich for new roads
Cut tax breaks to pay for infrastructure, the senator says
BALLSTON SPA, N.Y. » U. S. Sen. Charles Schumer, D-NY, says the federal government can fund $1 trillion worth of infrastructure upgrades by eliminating tax breaks for America’s wealthiest residents and corporate executives.
Work is needed across New York to repair bridges, roads and tunnels and improve broadband to remote areas such as the North Country, he said during a conference call.
“There’s a need for a new plan,” said Schumer, the U.S. Senate minority leader. “We have shown that we can pay for this, which has never been done before. If we don’t get it, it will be an issue in the election.”
Congressional mid-term elections, which could change control of the House and Senate, are slated for November. Republicans currently have the majority in both chambers.
Schumer said the choice for lawmakers is simple -- infrastructure or tax breaks for the very wealthy.
However, aging infrastructure is a concern for officials at all levels of government.
“I know most, if not all, towns and counties in New York state feel underfunded for infrastructure,” said Keith R. Manz, Saratoga County Public Works commissioner. “
County officials statewide are seeking a $150 million increase in CHIPS (Consolidated Local Street and Highway Improvement Program) funding from the state, to raise it from $438 million to $588 million.
“The last increase we had was in 2013, which was a $75 million increase,” Manz said. “Also, we are requesting reestablishing the $65 million extreme winter recovery funding that is currently not
in the governor’s Executive Budget.”
Manz said his department has another busy year coming up with 20 miles of paving on 10 roads, plus reconstructing five brides and a couple of culvert replacements.
Schumer said procedures would be in place to ensure that smaller upgrades in less populated areas are given serious consideration, the same as major jobs such as the proposed Gateway project that calls for two new tunnels connecting New York and New Jersey, beneath the Hudson River, to expand Northeast rail capacity.
“There are set-asides so big projects don’t squeeze out smaller projects, and you’d have to apply (for funding) like you do now,” Schumer said. “The best projects would be chosen.”
Schumer has identified five specific ways to provide the $1 trillion needed for his plan. They are:
• Return the top individual tax rate to 39.6 from 37 percent, which he de- scribed as “nothing more than a tax giveaway to the super rich.”
• Restore the individual Alternative Minimum Tax to 2017 law. This tax ensures that high-income earners cannot avoid taxes by abusing deductions and other loopholes. Returning it to 2017 law would ensure that the top 1 percent pay their fair share, increasing federal revenues by $ 429 billion over 10 years, he said.
• Restoring estate and gift taxes. Schumer said Republicans doubled estate tax exemption levels to $11 million for individuals and a $22 million for married couples, benefiting only millionaires and billionaires.
• Close the carried interest loophole, which enables Wall Street executives to continue disguising their income as capital gains to avoid taxes.
• Bring the corporate tax rate to 25 percent. Schumer said this would allow American businesses to stay competitive without providing a massive windfall to special interests that results in stock buy-backs and CEO bonuses being prioritized over hiring new employees and increasing workers’ pay.