In the 1970’s the message was clear to N.Y.C. and State. If we can’t manage our city’s financial health the Federal Government would not intervene. Today as Wall Street Opens just a week after the 7th anniversary of the 9-11 attacks our City and State financial health is on the verge of life support. As blogger s feature juvenile non substantive issue such as Palin’s glasses (see:http://www.associatedcontent.com/article/1018366/sarah_palins_glasses_make_eyewear_a.html)
or Hillary’s pant suits the tax receipts to the City and State are in great trouble due to the economic hit that is facing the nation as the financial system implodes.
Reason #1. As the times has reported London England is gainning on N.Y.C. as the financial capital of the world. Lehmans collapse is estimated to be a loss of 100 million dollars in tax revenues to the City and State. See the Times article at http://www.nytimes.com/2008/09/13/nyregion/13rivalry.html?ex=1379044800&en=4d42111006df5559&ei=5124&partner=permalink&exprod=permalink
Reason #2. NYS tax rate is one of the highest in the nation.The latest Tax Foundation estimate shows the combined federal, state and local tax bite on New York residents and firms this year will come to 37.1 percent of their personal income. By this measure, New York’s burden is exceeded only by neighboring Connecticut’s, where taxes average 38.3 percent of income. The national average is 32.7 percent.
Reason # 3. AIG, Lehman, Bear Stearns, Goldman and, Merril Lynch are all New York based as such the metro New York Region will sustain a harder impact than other American Cities. After the Federal bailout of AIG god only knows where this is heading
Reason # 4. Real Estate in NYC will drop now and you should have known that ” what goes up must come down” Below is the clip from Bloomberg
Manhattan Home Market Slows as Wall Street Cuts Jobs (Update1)
By Sharon L. Lynch
March 31 (Bloomberg) — New York City’s residential real estate market is showing the first signs of fallout as U.S. banks and securities firms cut the most jobs in seven years.
Manhattan apartment sales fell in January and February from a year earlier and new properties came to the market at the fastest pace since at least 2000, according to data from New York-based real estate appraiser Miller Samuel Inc. Transactions slid 6.4 percent to 3,250, while the number of condominiums, co- operatives and townhouses for sale at the end of last month climbed to 6,225, 15 percent more than at the start of the year.