Nov 6, 2008 12:06 pm US/Eastern
Expert: Bloomberg's Tax Plan Could Be 'Disaster'
Mayor Says Promised Property Tax Rebate Is Off Table
NEW YORK (CBS) ―
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Mayor Bloomberg announced the grim news on Nov. 5. NYC property tax rebates are off the table and increases in income taxes are on the way (file).
CBS
These tough economic times have Mayor Michael Bloomberg considering some harsh measures to balance the city budget. One of the most controversial ideas is the repeal of a promised $400 property tax rebate
There will be 1,000 fewer police officers to fight crime, yet 200 new traffic agents to slap drivers with $60 million worth of new block-the-box tickets. Bloomberg is proposing both deep spending cuts and lots of new taxes.
In the current fiscal year, the mayor wants to hike property taxes 7 percent and take back a promised $400 property tax rebate.
"Nobody likes to look their constituents in the eye and say, 'I'm sorry the $400 rebate is not gonna be there.' Nobody wants to look their constituents in the eye and say, 'I'm sorry, you're gonna have to pay more taxes.' Nobody wants to look their constituents in the eye and say, 'I'm sorry, library hours will be a little bit shorter,'" Bloomberg said on WCBS 880 on Thursday morning. "If we do those things now we won't have to cut a very large amount of very important things and we will be in good shape down the road."
But many believe New Yorkers won't understand the mayor's logic.
"I think the people of the city of New York will be enraged," said City Councilman Simcha Felder (D-Brooklyn).
To plug gaps in the fiscal year that starts next July, Bloomberg is proposing a combination of sales tax increases and income tax hikes.
The mayor proposed raising income taxes by either 7.5 percent or 15 percent. At 7.5 percent, a taxpayer making between $50,000 and $75,000 would pay an additional $116. At 15 percent, the number is more like $233.
"Increasing the personal income tax would be a disaster for the city. It's hard to over-estimate the fact we've already got the highest local personal income taxes in the nation," said Nicole Gelinas of the Manhattan Institute.
CBS 2's Marcia Kramer will sit down with Bloomberg this afternoon to discuss the city's looming budget crisis. See her reports beginning on CBS 2 News At 5.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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