According to NYS Comptroller Thomas DiNapoli, cash bonuses paid by Wall Street firms to New York City employees declined by 44 percent in 2008. The reduction in bonuses will cost nearly $1 billion in personal income tax revenues for New York State.

"A 44 percent decline in the bonus pool will ripple through the regional economy and the state and the city will lose major tax revenues," DiNapoli said. "The securities industry has already lost tens of thousands of jobs and the industry is still continuing to write off toxic assets. It's painfully obvious that 2009 will probably be another difficult year for the industry."
http://www.osc.state.ny.us/press/releases/jan09/012809.htm

With New York's most vital industry deeply stressed and partially nationalized, simply raising taxes on high earners is not the answer, especially since the wealthiest one percent generates 40 percent of the state's income taxes. As E.J. McMahon points out, therein lies the problem: New York already relies too much on Wall Street and high-income taxpayers. (http://www.nydailynews.com/opinions/2009/01/23/2009-01-23_dems_have_a_taxing_plan_the_millionaire_.html)

Washington 'Stimulus' Plan: Spend Like there's no Tomorrow

Last Wednesday the U.S. House of Representatives passed an $819 billion 'stimulus' bill without a single Republican vote and even President Obama hinted that it would need significant changes before he would support it.

The editors of The Wall Street Journal do a great job of exposing the 'stimulus' as cover for a massive expansion of government programs and federal entitlements by Congress (http://online.wsj.com/article/SB123318915075926757.html). They also argue that this measure is another step toward nationalized healthcare.

Consider some of the $136 billion in government program spending included in the latest 'stimulus' bill:

National Endowment for the Arts	$50 million
Repairs to the Smithsonian Institute	$150 million
Sexually Transmitted Disease Education	$335 million
Climate Change Research	$400 million

Representative Mike Coffman of Colorado makes an excellent case against the spending binge here: http://www.rockymountainnews.com/news/2009/jan/31/huge-spending-package-disastrously-nonsensical/.

For Many Expected to Pay the Bill, there is no Tomorrow

While so many politicians are praising the massive increase in government spending - often referring to it as an 'investment' - it may be beneficial to see how those who actually support the bureaucracy are fairing. Let's take a look at what's happening to the New York employers and employees who will be expected to pay for this 'investment:'

New York City - The New York City Comptroller reports that the City has suffered three successive quarters of negative growth, and lost 65,000 jobs in the last three months of 2008. Click here for the report: http://www.comptroller.nyc.gov/bureaus/bud/Summary_economic_notes.shtm.

Rochester - Kodak employees are bracing for another 1,300 layoffs by spring as company sales plunged in 2008.
http://www.democratandchronicle.com/article/20090130/BUSINESS/901300319/1001

Massena - The General Motors Powertrain plant will officially shut its doors May 1st.
http://www.watertowndailytimes.com/article/20090131/NEWS05/301319955/-1/NEWS

Syracuse - Charlie Hannagan of the Post-Standard reports on the most layoff announcements in one day:
http://blog.syracuse.com/shoptalk/2009/01/most_layoff_announcements_in_o.html

Where are all of the 'green collar' jobs we keep hearing about?

And Speaking of Healthcare...

Just as the federal government moves toward a nationalized healthcare system (under the cover of the latest 'stimulus') New York will likely drive up the cost of private health insurance by imposing $770 million in new or increased taxes included in the Governor's budget. Currently, New Yorkers who buy private health insurance pay $3.1 billion in taxes on health insurance.

New Yorkers for Growth

We believe that a stimulus package from the federal government should be focused on items that will provide true, lasting benefit - not to simply increase baseline spending for government programs. Unfortunately, long-term projects with a lasting value, transportation and infrastructure, for example, are not very well funded in this bill. Instead, Congress has added massive amounts of spending to existing government programs. While this will do very little if anything to stimulate the economy, it will add even more to the debt that future generations already have to shoulder.