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New York - Governor Vows No Tax Hikes But Bloomberg Likely to Raise Taxes as Gap Widens |
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The Democratic governor, speaking at an economic summit with legislative leaders, ruled out tax increases for the current and next year's spending pact.
He added later: "I don't believe in taxes, I don't believe in lay-offs, and I don't believe in taking money from schools." The Democratic-led Assembly has repeatedly urged raising income taxes on millionaires.
Paterson said the state's finances have weakened sharply in the past few weeks, adding the latest data do not reflect the collapse of Lehman Brothers nor Citibank's possible loss of Wachovia to rival Wells Fargo.
The governor first pledged not to raise taxes in answering a question from Republican Senate Majority Leader Dean Skelos that revealed some of the difficulties the leaders will have in closing rapidly rising shortfalls in the state budget.
The Long Island Republican, who goes into the November elections with only a two-seat majority, had said that his chamber's economic advisor did not think it was now appropriate to "definitively" revise state forecasts.
After Paterson responded that he feared some representatives did not understand the seriousness of the financial emergency, Skelos repeatedly objected to what he said were the governor's lectures.
But New York City Mayor Michael Bloomberg said taxes will "probably'' have to rise to help close the city's $2.3 billion budget gap for the next fiscal year.
"We don't have enough money to balance the budget. We're going to have to find additional revenue sources,'' Bloomberg said today during his weekly appearance on WOR radio. "People say, `Does that mean taxes?' It probably does.''
The city is dependent for as much as 9 percent of its revenue from Wall Street, which has sustained job losses amid restructuring of financial industries. They represent about 5 percent of city jobs and about 20 percent of wages, according to the city comptroller's office.
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Read Comments (3) — Post Yours »
1
Oct 03, 2008 at 12:27 PM Anonymous Says:
As a republican my whole life I would vote for Paterson any day of the week he has sound economic principles which I would hope the members of my own party in DC had
2
Oct 03, 2008 at 12:50 PM Nisht Kein Chuchem Says:
Finally some sanity in Albany! And most surprisingly by a democrat.
3
Oct 03, 2008 at 03:52 PM mikey Says:
That's all Bloomberg knows how to do - Raise taxes and spend more.
Well how about cutting wasteful pork spending and all sorts of programs the city should not be providing.
No third term -