Corporate Salary Cap
People are asking whether or not this will hurt New York - the answer is yes. Our state taxes these Wall St. bonuses heavily, and knowing the size of these bonuses our state is surely about to lose out on billions in income taxes. It makes you wonder whether or not the state's budget had that "revenue" incorporated into their current and future budget predictions, and how that might affect next year's $12 billion budget deficit.
So - here is where we are. We're happy that these crooks are going to have their income controlled by the government as long as they are borrowing taxpayer money. However, if these fat cats are going to be paying billions less in taxes due to earning less income, who do you think is going to be closing that budget gap? YOU are, one way or another. Isn't that a bitch?
They won't shrink the size of government and spend responsibly. New York State politicians do not have the will to tell people that they've overspent and made obligations they never could have afforded, and now we are about to have to deal with that problem in a harsh way.
Addition of federal tax money to states in this $1T federal orgy will only exacerbate the problem. Politicians who are afraid of possibly having to get a real job would rather sell the state out than tell the people the truth - that the budget has been too big for too long, and that Albany relied on unusually high tax receipts from Wall St. (and now we know why) over the past 5 years to pay for expansion of government programs that wouldn't be sustainable otherwise. Right now, instead of acting responsibly and paring the budget down to match realistic tax receipt projections, they are waiting to make a decision until that $160B for states is released. Cute, huh?
Not to mention that our state (and our county, and our city...) does its budgeting backwards, thinking of what to spend on before understanding how much you actually have to spend.
So - here is where we are. We're happy that these crooks are going to have their income controlled by the government as long as they are borrowing taxpayer money. However, if these fat cats are going to be paying billions less in taxes due to earning less income, who do you think is going to be closing that budget gap? YOU are, one way or another. Isn't that a bitch?
They won't shrink the size of government and spend responsibly. New York State politicians do not have the will to tell people that they've overspent and made obligations they never could have afforded, and now we are about to have to deal with that problem in a harsh way.
Addition of federal tax money to states in this $1T federal orgy will only exacerbate the problem. Politicians who are afraid of possibly having to get a real job would rather sell the state out than tell the people the truth - that the budget has been too big for too long, and that Albany relied on unusually high tax receipts from Wall St. (and now we know why) over the past 5 years to pay for expansion of government programs that wouldn't be sustainable otherwise. Right now, instead of acting responsibly and paring the budget down to match realistic tax receipt projections, they are waiting to make a decision until that $160B for states is released. Cute, huh?
Not to mention that our state (and our county, and our city...) does its budgeting backwards, thinking of what to spend on before understanding how much you actually have to spend.
:::link:::
Shareholders have a say in bonuses above the cap amount and there's not limits on what they can reward. And it doesn't apply to the 350 institutions that already applied for bailout funds.
It seems like it might take time to see just how much of an impact it will have on the NY state budget. But I hear ya on the budget. See what you have first, then budget accordingly. Basic budgeting 101.