Outraged New Yorkers Launch ‘Taxpayer Brigade’ to Hold Pay-to-Play Paladino Accountable

Outraged New Yorkers joined together to launch the Taxpayer Brigade today with kick off events in Syracuse and Buffalo.  The Taxpayer Brigade will be following Carl Paladino throughout the State over the next several weeks to hold the candidate accountable for abusing taxpayer dollars for personal gain.

“Carl Paladino lobbied for taxpayer handouts but failed to deliver jobs, so today we’re launching the ‘Taxpayer Brigade’ to hold him accountable,” said State Democratic Chair Jay Jacobs.  “It’s time for pay-to-play Paladino to either make good on his commitment to the people of New York or refund their money.”

Pay-to-Play Paladino: Government Rents, Huge Tax Breaks, Very Few Jobs

Paladino claims to be for less government, but he is the ultimate insider. He is a major government landlord who pockets over $10 million a year in government rents and has received at least $12 million in tax breaks. “Paladino is state government's biggest landlord in Western New York, holding half of the 52 leases the state has taken out on offices in Erie and Niagara counties, a Buffalo News analysis shows. Albany's rent payments to Paladino this year will total $5.1 million. His companies will collect another $5 million in rent from the federal and local governments, including his two most lucrative leases that net him $1.7 million for an office that houses some operations of the Erie County Department of Social Services and $1.5 million for FBI offices behind City Hall.” [Buffalo News, 4/18/10, Click]

Paladino has distributed over $450,000 to politicians in an effort to gain insider influence.  "Paladino’s extensive dealings with government coupled with at least $452,000 in political contributions in recent years to scores of politicians are in sharp contrast to the rhetoric of his campaign for governor, in which he has railed against government spending and portrayed himself as an outsider dedicated to taking on the ruling elite.” [Buffalo News, 4/18/10, Click]

Paladino abused a state program to get $1.4 million in tax benefits without producing the promised jobs for the community.  “Anti-big government gubernatorial candidate Carl Paladino is fighting to hold on to a $1.4 million tax break for a company that created only one job and put back into the economy less than it took out.” [NY Daily News, 9/20/10, Click]

Further analysis shows Paladino pocketed $3 million in tax breaks through the Empire Zone program and only created 25 new jobs.  “For the last decade, anti-big government candidate Carl Paladino has pocketed millions of dollars in tax breaks by promising to jump-start economic revival in and around his native Buffalo. Today it's clear that promise remains unfulfilled. A Daily News probe found Paladino's companies netted $3 million in tax breaks through a program called the Empire Zones - while producing a grand total of 25 new jobs.” [Daily News, 10/3/10, Click]

In order to obtain these tax breaks, Paladino sells his vacant lots to himself, yet the lots remain vacant.  "To justify tax breaks in one instance, he sold a dozen vacant lots he owned to himself and claimed hundreds of thousands of dollars in ‘real property investments.’ Seven years later, these ‘investments’ remain what they were - vacant lots.” [Daily News, 10/3/10, Click]

Paladino’s Empire Zone buildings allow him to pocket $77 million in rent from taxpayers while simultaneously receiving 1.2 million in tax breaks.  “Records show six of Paladino's Empire Zone buildings hold leases that will allow him to collect $77 million in taxpayer-funded rent. Meanwhile, they've simultaneously received $1.2 million in sales and property tax breaks.” [Daily News, 10/3/10, Click]

Paladino will collect $24 million in state rent on one building alone; has already saved over half a million in taxes.  “This year, the Empire Zone was shut to new participants, although businesses already benefitting will continue to collect their tax breaks. Paladino is one of those continuing to benefit. He was a major participant in the program starting in 2000, the year former Gov. George Pataki loosened up the rules and expanded the definition of what properties were eligible. Paladino's Ellicott Group got into the program that year with a huge office tower on Main St. in Buffalo. That tower now collects much of its rent from the same entity that's handing it a tax break - the State of New York. Overthe life of his leases, Paladino stands to collect $24 million in state rent from this one building. To date he's already saved $576,400 in sales taxes. Since it entered the Empire Zone in 2000, Ellicott Group has produced one new job.” [Daily News, 10/3/10, Click]

For more information about the NY Taxpayer Brigade and to learn more about Carl Paladino, please go to:  www.paladinofacts.com