Financial Crisis To Vaporize $6.5 Billion In New York Tax Revenue

In a report about “Wall Street’s Transformation” (we’d have called it Wall Street’s obliteration, but whatever), New York Comptroller Thomas DiNapoli lays out the stark financial fallout from the crisis.

The financial crisis could cost New York State and New York City 225,000 jobs and $6.5 billion in securities industry-related tax revenue over the next two years, according a report (.pdf) released today by New York State Comptroller Thomas P. DiNapoli. The Comptroller noted that the Governor and Mayor have been proactive in dealing with the crisis, but New York, like other states, may require federal assistance given the magnitude of the projected budget gaps.

“Wall Street is the engine that drives the economies of New York State and New York City, but the global credit crunch has slowed that engine down,” DiNapoli said. “This year is on pace to be one of the worst years ever on Wall Street. Through the first half of this year, broker dealer operations of New York Stock Exchange member firms reported a loss of nearly $21 billion.

The breakdown for tax losses is $2 billion in NYC and $4.5 billion lost for the state. To give a sense of how quickly things are deteriorating, at the end of September, the state losses were estimated to be $3.5 billion.

See Also:
Crisis Fallout: New York Is Going To Suck

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