New York City’s latest personal income and sales tax increases will result in the loss of an additional 18,250 private sector jobs in the city, and will raise $70 million less than expected, according to the Manhattan Institute’s NYC-STAMP tax model.
Households in the New York City metropolitan area will account for nearly 90 percent of the added state income taxes that New York State residents will pay to help finance spending increases in the 2003-04 state budget, assuming the Legislature overrides Governor Pataki's expected veto.
By any standard of comparison, the tax increases proposed by the New York State Legislature would easily exceed all the new taxes enacted during Governor Mario Cuomo's last term in office.
Instead of imposing higher taxes on an struggling economy, New York State legislators should be looking for more ways to save money in the $59 billion state funds budget Governor Pataki has proposed. Here's a by-no-means exhaustive list of eight cost-cutting steps that would add up to over $1 billion next year.
New York’s economy stands to reap enormous benefits from President Bush's proposed tax stimulus plan.
New York City’s impending property tax hike will lead to the loss of another 62,000 private sector jobs, re-accelerating a downward economic spiral that dates back to the end of 2000, according to a forecast by the Manhattan Institute's econometric model.
This report analyzes New York State government’s fiscal history over the last three and a half decades, with a particular focus on Governor Pataki’s accomplishments. It finds that fiscal crises are always preceded by periods of higher-than-normal spending, and that reducing spending is the only successful way to solve a crisis. Tax increases, such as those passed in the early 1970s and 1990s, exacerbate crises by reducing economic activity.
New York City's new schools chancellor, Joel Klein, kicked off his introductory news conference with the observation that ‘resources are scarce.’ True enough—although you wouldn't know it from looking at the Board of Education's budget for 2002-03. Even after the latest round of budget cuts ordered by Mayor Bloomberg, spending will keep pace with inflation. And adjusting for cost-of-living changes, per-pupil expenditures are up 57 percent since 1983.
For all the hue and cry about the ‘cuts’ needed to close New York City’s $4.9 billion budget gap, a funny thing happened on the way to the 2003 fiscal year: the first adopted budget of the Bloomberg era does not reduce overall city spending. The nearly $800 million increase in the "city funds" portion of the budget is the key to understanding why New York City continues to face massive potential deficits for as far as the eye can see.
Mayor Bloomberg's proposal to raise the city’s cigarette tax to $1.50 from 8 cents per pack is expected to cut taxable consumption in half, as many more smokers quit, cut back, or turn to alternative sources out of state or on the Internet. This would undermine the financing for Governor Pataki’s health care programs, which depend partly on revenue from the state’s cigarette tax.
Mayor Bloomberg could realize more than $1.2 billion a year in city budget savings if he can get municipal employee unions to agree to proposed labor givebacks and productivity reforms including a health insurance co-pay, a longer work day for teachers, more scheduling flexibility for cops and firefighters, and less vacation and leave time for newly hired workers. But it all starts with ‘the zero option’—a pay freeze after current contracts expire in fiscal year 2003.
A majority of City Council members has called on the council leadership to back a city income tax surcharge of up to 55 percent on high-income New Yorkers. This $1.23 billion tax increase would have a devastating impact on the city's economy, leading to the loss of another 48,000 jobs, according to the Manhattan Institute’s tax policy analysis model. It would boost the combined state and city income tax rate to a maximum of 12.5 percent—nearly double the next-highest rate in any neighboring state.