Getting ahead of the impending damage from federal service cuts affecting New Yorkers

Today’s post is written by Politics and Other Stuff editor Paul Fisk

The MAGA wrecking ball approach to governance is inflicting incalculable harm on our nation, with more of it cynically timed to not take full effect until after the 2026 election.  Blue states like New York are being hit particularly hard.

Already enacted federal actions will dramatically increase health care costs and could eliminate insurance for 1.5 million New Yorkers.  The cuts increase hunger and food insecurity for 300,000 adults and children who currently benefit from SNAP. They negatively affect education, agriculture, and the environment. They move us backwards on climate change.  They raise prices for state and local governments as well as families. 

The unfortunate reality is that the harm already done will take years, if not decades, to repair.  The dissolution of safeguards and norms, the dismantling of bureaucratic capacity to provide needed services, the loss of institutional memory, the destruction of data and research, and the loss of faith in our government by our own citizens and the rest of the world are not things that can be fixed overnight.  The states must step up and salvage as much as possible.

The Fiscal Policy Institute, an independent, nonpartisan think tank, estimates New York state’s immediate budgetary loss over two years at $7.6 billion, roughly twice the state’s predictions, plus another $4.9 billion cut to the health care industry outside the state budget.  Medicaid cuts included in the federal mega-MAGA bill may seriously damage or even result in closings at rural hospitals.

The state may be inclined to follow a previous plan for facing big problems: paper them over in election years with one-time actions and put off permanent solutions that often never seem to materialize.    New York no longer has to plead poverty and an inability to do more.   

We have a better alternative now: reinstate the Stock Transfer Tax, a major revenue stream that was in place from 1905 until 1981.  It helped solve the New York City fiscal crisis in the 1970’s and it is needed again now.  It could bring in at least $15 to $20 billion annually, and grow, according to an analysis by noted economist and Yale Global Justice Fellow James Henry.

We have a golden opportunity to enact a long-term fix that could solve not just the immediate problem but provide resources to make serious progress on filling financial gaps in health care, education, infrastructure, climate change and other areas.

New York can reinstate nearly painlessly this miniscule one-tenth of one percent sales tax on stock trades, which is far below typical brokers’ fees and would be paid to a great extent by wealthy financial speculators, day traders, and out-of-state investors. Some wealthy traders have been contributing part of their profits in hopes of protecting their interests. 

Past objections to this surcharge have been credibly debunked in an article by James Henry and in a letter to colleagues from the Assembly sponsor, Phil Steck, a Democrat from the Albany area.  It would be tragic if we let a privileged few prevent us from adopting an equitable, recurring and growing revenue source that could dramatically improve our state’s fiscal condition. 

Our Democratic state government officials have the opportunity to stand up for their stated beliefs.  This is a chance to show voters that Albany can act on their behalf and not, like Washington, just for the already-wealthy, whose contributions some may have become a bit too fond of receiving.

We can counter the cuts from Washington and create a permanent revenue stream with growth potential. It can be a win-win. 

Tell your state representative that this is the year to do it: approve legislation (A1494/S1237) to create this revenue stream to address our major problems and get ahead of the devastating  federal cuts that are coming in programs that are vital to New Yorkers.

Paul Fisk is retired from the NY State Budget Division and is a former City of Buffalo Budget Director.

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President Donald Trump's big supporters are getting a clear message to "reconsider their relationship to the regime" — and back off — as millions of people prepare to hit the streets for "No Kings" protests across the U.S, according to an analyst.

More than 2,500 events are scheduled across 50 states on Saturday and "the need for resistance is urgent," Chauncey DeVega writes in a commentary piece for Salon.

Trump has been emboldened by the U.S. Supreme Court, moving quickly to impose aggressive immigration tactics, drawing the National Guard to multiple states and unleashing attacks on the media and comedians. He's also signaled invoking the Insurrection Act and targeting "left-wing" groups.

"These lies, and the hostility behind them, reflects a larger dynamic: Trump is seen by many of his supporters as a type of god-king on a divine mission. In this worldview, resisting Trump and the MAGA movement is an act of evil — unpatriotic at best, and outright treasonous at worst," DeVega writes.

His supporters could now see the mounting tension and decide where they stand, the writer argues. And some might have a different view.

"But America is still a democracy, albeit an increasingly weak one, and Trump still needs to maintain a veneer of public support," DeVega writes. "Protests and mass mobilization threaten his legitimacy. They counter the narrative that Trump and the MAGA movement enjoy unstoppable, popular momentum. No Kings will remind political bystanders — and the undecided — that resistance is not futile. Such protests can also send a signal to elites that it may be in their self-interest to reconsider their relationship to the regime."

The protests Saturday could also have a negative impact and empower Trump to move further into attack mode.

"But protests and marches also provide an opportunity for autocrats to expand their power," DeVega writes. "Trump has repeatedly signaled his desire to invoke the Insurrection Act, which would allow him to bypass the courts and to 'legally' deploy the military against the American people to put down 'civil unrest' or a 'rebellion.' Such a move could also be a prelude to de facto martial law, cancelling elections and suspending other civil rights and freedoms."

It could set the stage for the Trump administration's increased retaliation against people pushing back — and the stakes are high as people resist.

"Many have observed that Trump, with his actions against Democratic-led cities like Los Angeles, Washington, D.C., Portland and Chicago, is looking to create a pretext for a much harsher crackdown. This makes Saturday’s No Kings protests even more consequential. In the event of any violence, whether from protesters or agent provocateurs, the president will doubtless seize on it to expand his power," DeVega explains.

"While important, attending No Kings protests is a beginning and not an end. It should be seen as a first step of sustained political activity to slow down the Trump administration and MAGA movement’s attempts to end multiracial democracy," DeVega writes.