Posted by Tina
Time is ticking down; we’re rapidly moving toward the beginning of the change administration. Given Obama’s promise for higher taxes on businesses, and the rich, and given the anger over currupt players in the financial sector, soaking the rich might prove to be a very popular idea. But…there will be a downside to raising tax rates…just as there will be for limiting the size of bonuses and pay:
NY to Lose $178M in Tax Revenue From Execs Who Gave Up Bonuses
** Albany, NY – Gov. David Paterson said Friday that the loss of tax revenue from just six Goldman Sachs’ executives will cost New York $178 million. The executives complied with the urging of New York Attorney General Andrew Cuomo and others who said in November that major Wall Street companies benefiting from federal bailouts shouldn’t pay out the usual huge bonuses to executives. *** “Things could go even more south in a big hurry,” Paterson told reporters. He said Wall Street firms receiving federal bailout did the right thing by forgoing bonuses to their executives, but that has had a devastating effect on New York’s fiscal crisis because Wall Street taxes accounted for 30 percent of state revenue in the last fiscal quarter. AP **