The Forbes 'win-win' list

Politicians of all parties and ideologies generally agree on two points: they favor ethics reform and they oppose raising taxes. Regarding the latter, a qualification is in order: raising taxes, or at least proposing the idea, on billionaires is not bad politics. I mean there are only about 740 billionaires in the country. Adding in family members, close friends, and toadies, still means that those aspiring to elected office aren't risking a lot of votes by proposing new taxes on the super-rich.

President Biden has proposed a "Billionaire Minimum Income Tax." He says that your local billionaire shouldn't pay a lower tax rate than your local firefighter. Actually, the tax applies to families with a net worth in excess of $100 million. So I guess it's a "Hundred Millionaire Minimum Income Tax," which, unfortunately, is more of a sound bump than a sound bite. When the choice is between accuracy and glib packaging, the wise political leader chooses the latter. Selling "Old Age, Survivors, and Disability Insurance" to the public might be a bit of a slog. Call it "Social Security," and you've got a winner.

Governor Hochul takes a different tack from President Biden regarding billionaires. She doesn't want to drive billionaires, or even humble multi-millionaires, out of New York by imposing wealth taxes. She understands that the regular income tax rates, along with local property taxes, are sufficient to do that job. Heck, they even chase away middle class citizens.

Biden, Hochul and the Inquiring Taxpayer agree on the general principle that all citizens should "pay their fair share." General principles are fine and dandy in their place. A place far removed from reality.

Terry Pegula is a billionaire, ranking somewhere in the neighborhood of #520 on the Forbes list. The President's Billionaire Tax is designed to ensure that he pay at least as much income tax as the average Buffalo Bills fan. Nevertheless, Governor Hochul has just agreed to help Mr. Pegula build a new stadium for the Bills. The help comes in the form of $600 million in state money. There may be a fine line between a $600 million tax carve out and a $600 million gift of public money, but it's a line without much practical significance. In Canandaigua, our beloved developers and their enablers go the tax break route. The average citizen needn't be overly concerned about the difference. Either way, the money comes out of your income tax and property tax payments. It's an automatic deduction, so you needn't worry about filling out any approval forms.

Pegula Sports and Entertainment wisely hired a stadium consulting firm to assist with the new stadium project, that firm being Legends Global Planning, a company controlled by none other than Jerry Jones, owner of the Dallas Cowboys. A division of that same company is overseeing selling sponsorships and seat licensing. Mr. Jones is #264 on the Forbes list of billionaires. He and Mr. Pegula are partners in an exclusive club of very rich NFL owners.

Speaking of "seat-licensing," that's a neat little trick in itself wherein the fan pays a fee for a personal-seat-license which allows him to then buy actual tickets for use of the seat on game day. The Cleveland Browns have stopped selling PSLs, but a working class couple can still purchase them on the secondary market. They can get two in section 139 for a paltry $7,000. Another $280 for game day tickets will complete the deal. It's no wonder that so many fans drink. The Bills have announced that they will employ this scam (you can be sure that they will present it as an unbelievably fan-friendly offering) as a way to allow the Pegulas to recoup their own $350 million investment in the new stadium. When you realize that 19 NFL owners are billionaires, you understand that they know a thing or two about recouping.

It never fails to amuse the Inquiring Taxpayer when multi-millionaire/billionaire businesspeople and their various elected and unelected enablers package their raid on the public treasury as public-private "win-win" deals. Kind of like two teams both winning the Super Bowl. Similar in that neither happens. A spokesman for Pegula Sports and Entertainment made the predictable assessment that "This is a good investment for everyone involved." Would you expect him to say: "Man, are we making out on this!"? Governor Hochul's crystal ball shows the state making back its commitment in 22 years. Safe to say, neither she nor her crystal ball will be accounting for that prediction in 2044.

The vast majority of economists say that public subsidies for new professional sports stadiums are an ineffective allocation of public monies. A fairly representative view is that of University of Chicago economist Allen Sanderson, who says that "Sports stadiums are no catalysts for economic development. They just largely enrich the team and the league and the owner of the franchise." Even without a Ph.D. in economics, you might have figured that out for yourself. It goes back to that Forbes list and why the owners are on it while the fans aren't.

An Albany lobbyist said that he was stunned by the negotiations for this new stadium: "Everyone in government folded like a cheap suit." We can be sure that Mr. Pegula and his fellow NFL owners do not wear cheap suits. In fact, most of the people who get the biggest tax breaks and public gifts dress well, eat well, and vacation well. Yet whether they are building a resort on Canandaigua Lake, affordable housing in downtown Canandaigua, or a football stadium in Orchard Park they invariably "need" public money to make ends meet.

By subsidizing wealthy businesspeople with our tax dollars, we hear over and over again, we are actually benefiting our own selves. Which just goes to show that it's the average working stiffs who need to keep "paying their fair share." Because while the Bills may "win" on gameday, the citizens' subsidies for wealthy businesspeople apparently ensure that those citizens will "win-win" every day. Forbes should create a new list. You may be on it.

Joe Nacca of Canandaigua is a frequent Daily Messenger contributor.

Joe Nacca

The Inquiring Taxpayer

Messenger Post Media

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