Oct 14, 2009 6:12 am US/Eastern
Thompson In Favor Of 'Half Millionaire's Tax'
Mayoral Hopeful Says New Taxes Should Hit Those Making $500,000 And Up; Pundits Caution That Is Slippery Slope
Sources: Bloomberg Foe Changed Stance To Woo Working Families Party
NEW YORK (CBS) ―
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2009 Mayoral Election Candidates - Michael Bloomberg (I), left, and William Thompson (D).
CBS
It's tax the rich time again. Democratic mayoral contender Bill Thompson now wants to tax the rich to help solve the city's fiscal woes.
Thompson didn't always feel this way. It's a flip flop at a time when Mayor Michael Bloomberg says no new taxes for anybody.
"The millionaire's tax for New York City is not a good idea. We don't want to drive people out of New York City, so tax increases should probably be done across the board," Thompson said.
A year ago Thompson wanted to tax everybody, but in the heat of the mayoral race his bull's-eye is only on the well-to-do.
"The only taxes I've said should be increased and I would have done it this year are taxes on wealthy New Yorkers. Those making half a million dollars a year of more," Thompson said.
Why the flip flop?
"The constant changing circumstances we're living in. We're watching a recession in New York City that continues to deepen," Thompson said.
Sources say that Thompson changed his position on the millionaire's tax in order to get the support of the Working Families Party, which has long believed that taxing the rich is the best way to raise revenue.
Bloomberg is blasting Thompson for the flip flop, and pundits say Thompson's approach could backfire on him.
"The great fear and one of the reasons this always has trouble picking up strong political selling point is that people fear that millionaire becomes half a million becomes a quarter million becomes a $100,000 and suddenly it's a middle class tax," said David Birdsell of Baruch College.
Tax policy has become a big issue in the mayoral race. On Monday Bloomberg pledged no new taxes next year.
"I don't think taxpayers can really stand any more taxes at any level," Bloomberg said.
But Thompson refused to make that same pledge on Tuesday.
"You know one doesn't know where the fiscal situation is going to be," Thompson said.
Voters will soon get a chance to weigh in. The election is just three weeks away.
The rich already pay most of the taxes, with 61 percent of the income taxes taken in by NYC in 2006 paid by just 2.6 percent of city residents, making $200,000 a year and up.
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