Surging Wall Street Bonuses Won't Save NY's Sorry Fiscal Situation

empire state building new york

Luckily, the Obama administration has been lax on Wall Street bonuses, because that money will come in handy up in Albany.

From Bloomberg:

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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