In order to avoid further spending cuts and layoffs, New York City Mayor Michael Bloomberg proposed to increase the taxes by another half a percent, which would bring the combined state and city sales tax to 8.875%. He also proposed that the sales tax ban on clothing, which was originally meant to increase the attractiveness of the city’s retailers, be lifted. If passed, the measure could collect as much as $950 million annually, and with a nickel per plastig bag, the city could receive another 100 million bucks. The myor continued to reject the idea of raising taxes to the wealthy.
Presenting the proposal to the City Hall, he admitted that the proposal is not ideal but must be done in order to prevent losing the ability to pay the teachers and police commissioners.
“It is true that sales tax, if you have the same rate, is a regressive tax, but the bottom line is, the people that have more money buy a lot more things, and they spend a lot more of it. Is it a good tax? No. None of these taxes are good taxes. But if you want to cut, would you really want to have a city where we couldn’t pay our teachers, where class size would go up dramatically? Do you want a city where the police commissioner and his people can’t keep crime coming down? No. Do you want a city where our culturals and parks and everything fall apart and then we have no tourism and we have no business and people leave the city? No. There’s no easy answers.”
Some say the mayor should be ready for a “vigorous fight”.