After the record jump in Wall Street bonuses early this year, a slowdown in personal-income growth in New York and other finance-intensive states was inevitable in the second quarter.
From the perspective of Labor Day 2006, employment and wage trends in New York since the beginning of this decade could be described as a tale of two sectors: private and public.
Reimposing the full 14 percent surcharge on New York City’s resident income tax will cost New York’s battered economy 10,700 badly needed private sector jobs, according to the Manhattan Institute’s tax policy simulation model. As a result, our model indicates the revenue gain from a restored surcharge will be about $30 million less than has been projected.
Saddled with yet another high-priced mandate from Albany, Mayor Giuliani and the City Council are rethinking their tax-cutting agenda. But curtailing tax cuts now would represent a step backward from policies that have contributed to the city's strongest private-sector employment growth in a half century.