McMahon’s Reality Check

There was a lot of buzz about Eliot Spitzer’s plan, announced during yesterday’s State of the State speech to appoint Nassau County Executive Tom Suozzi to a new commission that will look at the possibility of imposing property tax caps for local schools and municipalities.

As a result, some are already calling it the Suozzi Commission, but along with that, notes E.J. McMahon of the Manhattan Institute’s Empire Center for Policy Research, entails some risk.

McMahon was on Talk 1300 radio this morning and then he later chatted with some reporters here at the Capitol and he noted that any real change in property taxes will mean changes inÂ the gold-plated pension and retirement health benefits that teachers and municipal employees get in New York.

WithÂ those benefitsÂ protected or even memorialized in state law, that means legislators will have to go up against powerful and well funded unions such as the state teachers union,Â Â CSEA and the 1199 health care unions.

That amounts to a political third rail, McMahon noted, which in turn raises the possibility, at least, that the tax cap study might not yield much in the way of results, which could in turn mean that Suozzi could ultimately become the governor’s “fall guy” for aÂ Â failed effort.

Of course it’s too early to doom the cap commission, which McMahon is rooting for, but the guarded assessment provides an interesting take on just how politically difficult it will be to actually get a handle on NY’s highest-in-the-nation property taxes.Â Â 

  1. SmokinJoe says:

    Tom Suozzi is nothing but a hack media hound and he’s gotten some rope to hang himself with.

    Blowing up hard working citizen’s pensions so a bunch of rich downstate scum can keep from paying their fair share of taxes???

    Good luck selling that one wacko!!!

  2. The Referee says:

    As usual, EJ is right and smarter than most.

  3. jason says:

    “the tax cap study might not yield much in the way of results, which could in turn mean that Suozzi could ultimately become the governorâ€™s â€œfall guyâ€ for a failed effort.”

    He’s right, the cap commission will accomplish nothing but make Suozzi look impotent….not important.

  4. chris_chichester says:

    Number 1, you are incapable of civility. You can’t defend or promote any position without calling people “scum” and other vile names. You’re consumed with bitterness and hate. It’s sad. Why the Times Union allows you to post to Capitol Confidential is amazing.

  5. gary condit says:

    I think EJ could profit from some of 11thMental’s budget-related expertise…cutting the Senate Republican Campaign Committee’s New York State funding to close up some of the gaps, for instance.

  6. skeptical says:

    Amen to that, Chris. Joe’s energy diminishes the blog. Often times it’s better to not post, since any chance for thoughtful debate or dialogue is obliterated by his pedestrian expressions of latent angst. Jay, here’s one vote to clean him up or send him packing. Let him go wrestle with his peers on facebook.

  7. mercury says:

    Google Manhattan Institute and you will then see what they are about (neo-con bushies). They are funded by tobacco, big oil, wal-mart the large financial institutions and of course fox news (we distort you decide). These are the same industries that are reaping the wealth while we face increases in the prices of everything we need. These companies are part (not all) of the reason why governments are in debt. Price gouging gasoline and the subprime mess……….why would anyone even acknowledge someone (EJ) from a right wing neo-con think tank. Bush and Cheney give speeches there also, if that tells you anything. Anyone who reads these attacks on working class individuals including government employees, should find out and research who these people are and their organization. These people and republicans are not the working classes friends.

  8. SmokinJoe says:

    #4 ….. If the shoe fits ….. Yes, rich people who buy politicians to avoid paying taxes ARE SCUM!!!!

    Only you and your kind would believe otherwise!!!

  9. knottime says:

    â€œTom Suozzi (a D) is nothing but a hack media hound (see Schumer), and heâ€™s gotten some rope to hang himself with. (Are you sure you want to go with the rope metaphor? Andy isnâ€™t sure youâ€™re completely on board.)

    Blowing up hard working citizenâ€™s pensions (teachers and state workers, who support Dâ€™s by direction from the D union bosses) so a bunch of rich downstate scum (more Dâ€™s) can keep from paying their fair share of taxes (class warfare against rich Dâ€™s by entrenched unions!!???!!)

    Good luck selling that one wacko!!!â€

    Keep selling irrelevancy. Itâ€™s working.

  10. getthefacts says:

    Dear Mr. McMahon:

    I have a question. If it is the gold plated retirement benefits that cause high property taxes, for the few years that local governments and state government did not have to contribute to the system because of the well performing stock market during the 1990′s, what was the cause of the high property taxes during that period?

    I do not think he will attack the Medicaid and the way wealthy people can shield the money through trusts, and that these benefits are some of the best in the country and school property taxes are high because of the mandats from the state such as handicapped program where people can pick any private school and we have to pay.

  11. hungeraction says:

    Aside from the merits of a cap on property taxes, it would interesting to see how such a cap would treat three different layers of government that have the authority to levy property taxes: schools; municipal (town, villages, and cities, along with fire departments); and county.

    The other issue with respect to property tax relief that Spitzer never addresses is the failure of the state to comply with Section 54 of the State Finance law, a Rockefeller era law that requires the state to share 8% of the revenues it raises with local governments. When it only shares 2% (the budget says, not withstanding Sec. 54, here is what we giving you), the forces up local property and sales taxes. Complying with Section 54 would particularly help cities, especially upstate.

    Cities in NY unlike more western states have virtually no ability to expand their boundaries to absorb population growth (e.g., suburban sprawl). So the homeowner tax base moves out, the cities are left with extremely high rates of poverty (25 to 30% in Buffalo, Syracuse, Albany, ROchester) with high percentage of tax exempt property (schools, hospital, cultural institutions) while being forced to provide an array of services (police, fire, traffic control, snow removal, street cleaning) to service an out of city work force that shows up during the day, then goes home to the suburbs to spend their earnings and pay their local taxes. (The City of Albany has a population of 95,000; more than 60,000 non-city residents show up every for work.)

    I was suprised to learn recently that technically counties are not really local governments under our state constitutional system of government. They are really more of a local administrative arm of the states (e.g., they have no role in issues like zoning and land use). So it doesn’t make a lot of sense when they complain about unfunded state mandates, because carrying out state mandates is largely their purpose, whereas the town, villages and cities are much more independent local governments.

  12. devtob says:

    McMahon is a Pataki hack who, now that Pataki is less than yesterday’s fish-wrap, landed a six-figure sinecure at a wingnut “think tank,” and is therefore, remarkably, transformed into a budget expert.

    At least by the Murdoch press/Trustco radio.

    No one, outside the wingnut micro-minority, cares a whit about what he has to say.

  13. Mike says:

    Yeah, JJ, why don’t you ban Smokin’ Joe for his antics and let the extreme right wing practice mass character assassination unchallenged.

    Do you now understand why John Galt, topo and all the intelligent people are fleeing this cesspool to read EB at the Daily Politics?

  14. 11thWardDem says:

    Not quite sure where you are getting that quote from Condy, but I will find out.

    Either way, it’s nice of you to provide rhetoric of substance, er um I mean and argument of nothing, er um I guess I mean way to waste everybody’s time with your dribble.

    “We never not once ever asked for paid rethuglican’t hacks to spread their dribble and rhetoric, but we get to put up with it every day CapCon.”

  15. knottime says:


    Trying to have substantive discourse with SJ is impossible for anyone here except Mr. Black, who shall reside in the Smokin Joe Hall of Fame, as the First, and Last, Inductee.


    Warpinâ€™ to the â€œInevitableâ€ match up between and Obama/Clinton:Clinton/Obama vs. McClain/Lieberman.

    Warpin ready. With money. And time. And a â€œprogressiveâ€ attitude.

    And at the end, weâ€™ll belly up, Bart.

  16. gunga dan says:

    “A kind Providence has placed in our breasts a hatred of the unjust and cruel, in order that we may preserve ourselves from cruelty and injustice. They who bear cruelty, are accomplices in it. The pretended gentleness which excludes that charitable rancor, produces an indifference which is half an approbation. They never will love where they ought to love, who do not hate where they ought to hate.”

    –Edmund Burke

  17. knottime says:

    This sucks, but it must be done.

    I hate this. I really do.

    Am I now going to have to instruct the TU on the right to be read? On behalf of a moron named SJ?

    Please, let us ignore him.

    Weâ€™ve earned, and learned, the ability to ignore him, which is part of the purpose of free speech.

    Let him be stoopid. Heâ€™s earned the right. And demonstrated his ability.

    But to not allow him to express his stoopidity is not consistent with the obligation of the Times Union to the First Amendment. And the Founders made it Number 1 for a reason.

    p.s. For those offended by SJ, the page down key is below the page up key, and if really offended, you hold down the shift key and the page down key at the same time. Ctrl/End takes you to SJâ€™s homepage.

    Problem solved.

  18. knottime says:


    How’s the broadband comin’?

  19. chris_chichester says:

    Number 12, anyone who knows EJ doesn’t for a minute believe he’s a “hack.” EJ has deep experience in state politics and policy.He’s also a thinker who commands respect from both Republicans and Democrats. If you knew these facts you would not have personally attacked him with your drivel.It’s yet another posting the Times Union allows on Capitol Confidential that debases the paper.

  20. knottime says:

    Maybe the newbie needs caffeine.

    Or not.

    Warpinâ€™ weâ€™ll see.

  21. Saratoga Steve says:

    Pamal Albany Broadcasting’s WROW 590 and Clear Channel’s 810 WGY also have local AM radio talk in the Albany market. If some find some of hosts there a bit more critical of the Capitol’s 2nd and 3rd Floors (perhaps to put it mildly, caustic at times may be a better word), in fairness, they cannot be accused of fraternization.

    One side of the issue says that you need these people as guests to hear their take and the other side that if you work in their work and/or social environments, you can become a part of the system that you supposed to be reporting on. Yes, some things may be said that are critical and the guest may continue to return, but that can be all a part of the game (to at least maintain some appearance of journalistic credibility, and not being just a PR, fundraising or social mouthpiece). Who’s got a cool party or hot breakfast and where may be important to one side, whereas the other may not know … and may not want to know.

    Just a totally ignorant observation about Broadcasting Journalism by a totally inexperienced Dummy from … The Peanut Gallery.

  22. devtob says:

    No. 19 — Pataki hacks stick together.

    McMahon, according to a short bio he presumably wrote, is a former reporter with a bachelor’s degree who got several high-level Republican patronage jobs before becoming a “budget expert” for the Business Council and the right-wing Manhattan Institute.

    His solution to any budget problem, crisis level or not, is to cut public employees’ jobs, salaries and benefits.

    Which is exactly what his bosses want him to say.

    McMahon is no “budget expert,” just another front man for powerful special interests who gives good quote.

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