No Tax Revenues for NY
Wall Street Losses Cut Tax Bill, Sap New York Revenue (Update2)
By Henry Goldman and David Mildenberg
Aug. 12 (Bloomberg) -- Wall Street's mortgage losses have grown so large that some firms may pay little or no taxes for years, widening New York City and state deficits and challenging their ability to provide services, Mayor Michael Bloomberg said.
``I think it will be a number of years before Wall Street starts paying taxes again,'' the mayor said at a press conference yesterday in Manhattan. ``They will carry forward all of those losses.''
Think about the effect on the above on not just city revenues, but state and federal tax receipts as well. Then add in the negative revenue impact from job losses and lower wages/bonuses and clearly we are on the edge of a financial crisis many local budgets.