Half-Percent Sales Tax Increase One Step Closer to Reality

The City Council endorsed today Mayor Bloomberg's plan to raise the city's sales tax to 8.875 percent. The measure, which passed 37 to 10, now goes to Albany for approval by the State Legislature. While those who voted against the increase argue the tax is regressive and unfair, City Council Speaker Christine Quinn says the measure will save 1,200 to 1,500 retail jobs. But, not all councilmembers who approved the tax say they did so willingly. Said Councilman Lewis Fidler to the Gotham Gazette: "If we don’t authorize the sales tax, as distasteful as it is, there will be layoffs...I prefer we find it somewhere else, but that is not the choice we have." The increase is expected to bring more than $500 million in new revenue to the city. Photo: mariab3bx on Flickr

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By Jon Hill in News on June 15, 2009 6:12 PM

Comments [rss]

moocow

wasn't the sales tax lowered to what it is now from a rate close to 8.875%? am i mistaken?

starrygordon

I don't understand this: "City Council Speaker Christine Quinn says the measure will save 1,200 to 1,500 retail jobs." Raising the sales tax means there will be less retail business, and less money retained by retailers to pay employees with. In addition, the employees' pay will be less effective because more of it will be taxed, leading to yet more decline in retail business. Raising the sales tax will, therefore, cause a loss of jobs. It's yet another case of busting the poor in order to avoid inconveniencing the rich. Is there something I'm missing here?

KiljoyWasHere

Agreed. By raising taxes and driving people to either shop online or not shop, you are killing brick and mortar retail jobs.

Brooklyn

Threatening layoffs? I say go ahead and lay some mofo's off -- you could cut a lot of fat from state government.

SonnyBobiche

Remember the $5 a gallon gas that made taxi cabs and buses raise their fares. Gas is at $2.50 but the fares remain the same.

Online or not I shop for clothing in NJ, anyway. They got Nordstroms, Bloomingdale's Macys, Saks and The Men's Warehouse at 0% tax. What's not to like even with an $8 bridge toll?

Bottomless Chips

When the economy turns, will they roll back the tax?

EastRiver

They need to collect sales tax on online sales. There is absolutely no reason people should be able to buy computers and large screen televisions for thousands of dollars and not pat tax on it.

Steven

They do now. Patterson Amazon tax? Buy,macmall etc charge sales tax in NY.

The only place which is still tax free - newegg.com. Thanks, Newegg.

buttface

Don't tell people about Newegg! You're going to blow up our spot!

Wza

D'oh!

buttface

Don't tell people about Newegg! You're going to blow up our spot!

lcrsh79

Terrible. After its raised i seriously doubt they will ever lower it again. Eliminating the clothing tax means i'll order online for now on.

longacre

Tax hikes worked out so well for President Hoover, maybe we'll be living in Obamavilles and Bloombergvilles in a couple of years. Then again, still sounds better than Weinerville.