New York Pol Says: Soak The Rich To Balance The Budget

Here’s some new pain for Wall Street families trying to get by on a mere $500,000 salary: A New York State politician is proposing to tax the “rich” at a higher rate, to help the state get out of its budget morass.

Bloomberg: New York state’s highest earning taxpayers would pay thousands of dollars more in income taxes under a proposed bill that sponsors say would raise $6.2 billion and help ease a $13 billion deficit next year.

The measure’s sponsor, Manhattan Democrat Eric Schneiderman, said the move would provide an alternative to increasing the sales tax on clothes and trimming Medicaid and school budgets that opponents say would hurt the poor and middle class.

So far, Gov. Patterson isn’t on board, though he said he’d consider it if the state also cuts spending, or if the downturn is prolonged (which it may very well be).

Of course, there’s an enduring political appeal to tax-the-rich schemes. Most people aren’t rich, and so it’s essentially a way to pander to the majoriy on the backs of a small few. For most people, it’s a win-win: A balanced budget with other people fitting the bill.

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