The big, overriding problem in our country is that while the rich are getting richer, the poor are getting poorer. The war is on the list as well, but that too can be connected to the astronomical gap in wealth between the top and bottom classes in our society. One instrument that has been increasing the trend are hedge funds and those that run them. These people invest in good causes (sometimes) but always make obscene amounts of money. This being New York, there are plenty of these people and at least some in our government want to do something about it, like our City Council.
From The Gothamist:
The NY Sun reports 26 out of the 51 City Council members support an Assembly bill that would require hedge fund and private equity managers to pay more in taxes.The City Council is looking for ways to raise money (like implementing a hotel room tax) rather than slashing programs, noting, "With New York City facing tight budget projections in the years to come, it is incumbent on all of us to make sure everyone is paying their fair share of the tax burden before we ask those who depend on social services and public investments to suffer in the form of budget cuts to schools, mass transit, or health care."
While Governor Paterson and the Legislature would need to sign off on such a tax, this also flies in the face of Mayor Bloomberg's "don't tax the rich" stance. The Mayor believes if the "best and brightest" are taxed--especially as we're competing with other global cities for their talents--they will flee. And the City Council members and others who oppose this kind of a tax say the unincorporated business tax should be eliminated completely and this is not the time to introduce a tax, given the woes of Wall Street.
Okay so its really a razor thin majority that wants to do it, but that isn't bad considering that Bloomberg tries to strong-arm council members and many members can benefit from the generosity of hedge fund managers. Still, these are desperate budgetary times and we need to find the money to keep our city humming. We need to do that without putting even more of a burden on the backs of those that carry so much weight already.
Of course it isn't even up to the Council, this is an Assembly bill and there is no way this will pass the State Senate (this year or next) even if we do get the majority back this November. Taxing the rich is always an uphill battle because the rich have so much control as it is.
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