March 14, 2019 11 Comments
NYC mayor Bill de Balsio
Mr. Spender
John Aidan Byrne reports for the New York Post, March 9, 2019, that “As tax-fleeced businesses and individuals flee en masse, and city public spending surges into the stratosphere, financial analysts say…New York City is careening closer to all-out financial bankruptcy.”
Milton Ezrati, chief economist of Vested financial communication agency, said: “The city is running a
deficit and could be in a real difficult spot if we had a recession, or a further flight of individuals because of tax reform. New York is already in a difficult financial spot, but it would be in an impossible situation if we had any kind of setback.”
Here are the troubling indicators of a looming financial disaster:
- New York state — and city — are ranked No. 1 nationwide in state and local tax burden.
- Property taxes, almost half of the city’s revenue, are rising faster than any other revenue source — squeezing businesses and forcing homeowners, already hit by federal property tax deduction changes, to relocate to lower-tax states.
- The top 1% of New York City earners pay some 50% of the city’s income tax revenue.
- Long-term debt is now more than $81,100 per household in New York City.
- Since de Blasio took office, city spending has increased some 32% — triple the rate of inflation. But Democratic Mayor Bill de Blasio wants to add $3 billion more in the new budget than the current $89.2 billion.
- The city’s long-term pension obligations have escalated as well, as its workforce has soared by more than 33,000 in the last five years.
Peter C. Earle, an economist at the American Institute for Economic Research, said: “New York City could go bankrupt, absolutely. In that case, the city would get temporary protection from its creditors, but it would be very difficult for the city to take on new debt.”
I've heard this somewhere before. Why is it that every Democratically controlled city or state is teetering on bankruptcy? Gross mismanagement.
ReplyDeleteWe have scores of struggling cities in my neck of the woods. They're run by the incompetents, elected by the ignorant, and maintained by the bureaucrats. They manage to make the best citizens want to leave, cater to the mooches, and run up deficits by continuing to think the property is worth more than it is.
ReplyDeleteNew York is not different than any failed city, except it's still able to borrow money. When that ends, it will become a skyscraper canyon of destitution.
These are all the genius's that mock Trump, mock fiscal responsibility and want free everything. And its hard to believe this happened instantaneously. The leftist congresswoman who was tending bar 12 months ago must have been using coloring books during her time in college. Social promotions rather than merit is raising its head in more facets of life. We've told our kids when they went off to college last fall to think for themselves and not be taken in by any socialist leaning faculty members trying to pawn off some Soros inspired drivel. DiBlasio, Cuomo, Cortez. All sit around thinking of ways to a better America and all they can come up with are cow farts.
ReplyDeleteYup, and CA, IL, NJ, see a pattern????
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