Luckily, the Obama administration has been lax on Wall Street bonuses, because that money will come in handy up in Albany.
A 40 per cent jump in Wall Street bonuses this year may bring relief to New York City and Albany as the state and its biggest metropolis struggle with a combined $14 billion in budget deficits this fiscal year and next.
New York investment houses will dole out $26 billion in bonus checks by the end of March, said Alan Johnson, president of compensation consultant Johnson Associates Inc. The money will probably boost sales of multimillion-dollar co-op apartments and generate extra income-tax revenue for state and city governments.So
So how much can it help out New York? Last year Wall Street doled out about $18.5 billion, so if you figure 7% taxes on the additional $7.5 billion, you’re looking less than $500 million in additional taxes, give or take a few. So while this helps, the NY economy needs A LOT more than just a resurgent Wall Street.
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