Tuesday, December 23, 2008

Tax cuts for the rich

Gov. David Paterson said Friday that the loss of tax revenue from just six Goldman Sachs' (G: 7.84, 0.11, 1.42%) 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.

Paterson says it is the right thing to do, but the result is a further hit to the fiscal crisis of state government.

"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.

"I think it was the right urge," he said, but "the state lost $178 million in that moment."
Ahh, it kills me.

Class envy is certainly a double-edged sword. You get these rich, elite Dems campaigning against the rich elite. Scourgify them! Engender jealousy!

Then something like this happens. What is poor old New York going to do without that money? Ask Caroline Kennedy for it? What, Caroline doesn't pay much income tax? I thought she was rich? Right, but she doesn't work, so her income is interest and sales of stock. Stock sales are capital gains, remember?

Anyway, think about the trickle down effect. A half-billion or so of deferred or unrewarded bonuses. What were those rich people going to do with that money? Stuff their mattresses? I don't think so...

First, they were going to pay taxes. That's out.

Then, political donations. Guess that's gonna take a hit.

Can't buy that yacht, huh? Gee, I guess those guys who make the yachts are probably pretty rich, too. No? Just working class union guys earning $20?

Gonna put off those charitable donations? Too bad.

Can't buy that new car/fur/clothes/plane/remodel the condo? Won't mean much to you or your rich buddies, but what about those workers?

Don't the Dems realize that money actually does flow down, not up?

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