Bloomberg To Cut $1B From NYC Budget

By Justin Gardner | Related entries in Bloomberg, Business, Money, Taxes

Some tough cuts and tax increases are coming to The Big Apple.

From WCBSTV.com:

“This is a very tough time for our city and nation,” Bloomberg said. “We have a $4 billion budget gap. It is serious, I think it is manageable.” [...]

For now, Bloomberg is proposing $894 million in new sales taxes, including:

-Increasing the sales tax by one quarter of one percent from 8.375 percent to 8.625 percent
-Repealing the sales tax exemption on clothing purchases under $110
-And new taxes on lots of things that are now tax-free, like music downloads. [...]

“I would love to not have any sales tax, it’s not good for business here,” he said.

That’s the mayor’s plan for now, except even he admits it might not be his plan in the end. If the Legislature decides to put a surcharge on the personal income tax for taxpayers who make over $500,000, he told CBS 2′s Marcia Kramer he might piggyback on that.

“We’d have to find a billion dollars more revenue,” he said.

This is obviously risky business. Increasing taxes during a deep recession isn’t necessarily a good strategy because it depresses consumption and makes people save.

But then again, we’re talking about Bloomberg, one of the most successful business men in the world. If he thinks this is the way to go, we may want to pay attention.

More as it develops…


This entry was posted on Saturday, January 31st, 2009 and is filed under Bloomberg, Business, Money, Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply


NOTE TO COMMENTERS:


You must ALWAYS fill in the two word CAPTCHA below to submit a comment. And if this is your first time commenting on Donklephant, it will be held in a moderation queue for approval. Please don't resubmit the same comment a couple times. We'll get around to moderating it soon enough.


Also, sometimes even if you've commented before, it may still get placed in a moderation queue and/or sent to the spam folder. If it's just in moderation queue, it'll be published, but it may be deleted if it lands in the spam folder. My apologies if this happens but there are some keywords that push it into the spam folder.


One last note, we will not tolerate comments that disparage people based on age, sex, handicap, race, color, sexual orientation, national origin or ancestry. We reserve the right to delete these comments and ban the people who make them from ever commenting here again.


Thanks for understanding and have a pleasurable commenting experience.


Related Posts: