Skip to comments.Now who’ll pay NY’s bills? (Wall Street Pay/Bonuses are down and the rich are less rich today)
Posted on 01/20/2012 4:42:56 AM PST by SeekAndFind
After a disappointing year, the big banks are pulling way back on their bonus pools. This is going to be hard on bankers whose salaries are usually a very small part of their overall compensation and yes, before you drag out the worlds smallest violin, let me agree that they have no entitlement to anything more. But the bankers arent the only ones whove built their lifestyle around a heavy flow of easy money.
Before the financial crisis, the industry payroll accounted for 20 percent of New York states tax revenue; it still accounts for about 13 percent, as well as a hefty chunk of the citys tax base. Plus, the state Comptrollers Office estimates that every financial-sector job creates two more jobs.
New Yorkers who dont work for banks spend a lot of time lamenting the bankers existence: buying up choice apartments for rates you cant afford, gentrifying your neighborhood retail into one teeming sea of Godiva Chocalatiers and LOccitane en Provence shops, bidding up the price of a private day-school education to well north of college tuitions and generally making things miserable for the rest of us.
But in a very real way, you can credit the financial industry for New Yorks revival.
What turned this around was not the creative class, which was still flocking to rent-controlled apartments in the safer parts of town. No, what made the difference was money.
Oh, one can point to all the vibrant creative arts and their near-cousins in advertising and publishing; one can sing paeans to the citys energy and diversity. But those of us who lived in New York in the 1970s and the 80s also recall that it was violent, crime-ridden and depopulating. In the early 1970s, the city flirted with bankruptcy.
(Excerpt) Read more at nypost.com ...
This is the problem that NYS has because they have evicted (via high taxes and regulations) all other businesses from the state. Now the state is too reliant on Wall Street. If Wall Street must cut back then it negatively impacts state revenues.
I wonder what happens when all of the trading on Wall Street is done via computer and the best traders can stay at home and do their trading from low-tax states. Then, New York will have ‘killed the goose who lays the golden egg’.
Oh, by the way...hydraulic fracturing is still banned in New York State. Does that make any sense??? Meanwhile we buy our natural gas from the folks Pennsyltucky and provide those nice folks with some revenue.
Rush noted a while back that NYC is dependent on a very small group of high-income earners for the bulk of its tax revenue—IIRC, it was somewhere in the neighborhood of 400 people.
Rush further noted that if a sizable number of these folks left, or if their income was reduced significantly, NYC would be in a world of hurt.
So be it.
Why this made me think of Springsteen, I have no idea.
All that while our state is losing 2, count'em 2, House seats thanks to folks voting with their feet and fleeing the state.
1. Take more from the rich
2. Define "rich" as "middle class"
New York is becoming the next Detroit to keep the Democrats in power.
Rich is anyone who draws a paycheck. If progressives really wanted to tax the the rich, they’d tax wealth instead of income.
I was going to mention that. I think Cuomo understands very well that the gusher of revenues from natural gas would save him the trouble of pretending to fight with the unions. But he also knows that his NYC supporters want to maintain upstate as a big, empty park for their weekends in the country.
Dodd-Frank will dramatically change the financial services industry. Obama has delayed many of the coming regulations until after the election. One of the little known parts of Dodd-Frank is the new racial preferences imposed on the financial services industry. The combination of the draconinan regulations and racial prefernces will be more than enough impetus to convince the industry to move lots of work to other countries. The northeastern states will take a major hit after the election.
“Gov. Cuomo to present lean NY state budget”
Quote from article; “The budget proposed Tuesday contains no new or higher taxes or fees, but instead is built around spending about $2 billion from the “millionaire tax” increase on New York's top earners adopted in December”.
Who is John Galt?