Results tagged “taxes”

"The Empire State is being drained of an invaluable resource -- people," proclaims a new study from the Empire Center For NY State Policy. It shows that many New Yorkers are leaving the state in record numbers, and the move is looking to be quite taxing on the state. Between 2000 and 2008, 1.5 million state residents left for other parts of the U.S., leaving the state with a huge loss in taxable income. Nearly 80% of those who left were New York City residents.

Rep. Charles Rangel is the Teflon Rep! Even though he apparently knows nothing about paying his own taxes, he's keeping the chairmanship of the House Ways and Means Committee—which is involved with the country's tax code!

Method Man, a member of Staten Island's hip-hop group Wu-Tang Clan, was arrested yesterday for tax evasion. He turned himself to the 120th Precinct and when he was taken to his arraignment, he used a copy of "Ultimate X-Men" to cover his face. Really—video below.

New rates for things like driver's licenses and registration fees from the NY State Department of Motor Vehicles went into effect yesterday. All over NY State, the standard driver's license fee is now $64.50—up from $50, but in NYC and surrounding counties drivers will have to pay $80.50, because those areas are helping bail out the MTA. Registration fee-wise, a typical passenger vehicle will cost $55 (up from $44), but in the NYC-area, it'll be $105. Republican legislators are using the high fees to show how much Governor Paterson has raised taxes, but Paterson said he'd consider reducing them if the GOP can find revenue elsewhere, "I'd be happy to entertain it but they are not just going to be able to get up at a news conference and act shrill. They are going to have to tell us where they can close the gap."

Senate Majority Leader Pedro Espada's non-profit (but profitable enough for him to have been paid $460,000 in 2007) Soundview Health Network remains a source of questions from state officials. Earlier this summer, the NY State Comptroller's office yanked a $3 million state grant to the clinic because Espada, on the application form, claimed there were no outstanding tax liens, claims or judgments over $15,000... only there were (the Post says it owes about $1 million in taxes now) and now Attorney General Andrew Cuomo's office is investigating whether Espada gave false statements about his business's health. The Times Union also mentions the new investigation "is separate from ongoing probes involving Espada's campaign and the Soundview organization... Cuomo's office is looking into whether Espada improperly benefitted in his successful primary election last year by allegedly using Soundview employees and resources for political activities. Questions about Espada's residency and his failure to file complete campaign disclosures are also under investigation."

Lehman Brothers may be out of business and bankrupt, but that doesn't mean NYC can't demand over $600 million in underpaid taxes. The NY Times reports, "The Bloomberg administration has accused Lehman of shortchanging the city of $627 million in corporate and other taxes, beginning in 1996. It is now trying to convince federal bankruptcy court in Manhattan that the city should jump closer to the front of Lehman’s long line of creditors." Apparently Lehman, per the city's estimates, unpaid its corporation tax by $615 million and never paid commercial rent taxes of $12 million, which, prompts a lawyer representing some of Lehman's other creditors to ask: "How did the city get to the point where the city was looking at so many tax years, and so much money? It raises a lot of questions." (The city says it had been talking to Lehman about recouping the money and pointed out that audits can take a really long time!)

Some more Ruth Madoff news, courtesy the Post: The Ponzi schemer's wife "owes an eye-popping $600,000 in tax penalties and interest... Under a spending agreement filed in Manhattan Bankruptcy Court, the wife of jailed Ponzi schemer Bernie Madoff will be able to spend money only on settling that bill, legal fees and a 'reasonable' amount on living expenses." So we suppose that is coming from the $2.5 million she was allowed to keep. The Post says this "stems" from a deal she made after being sued for almost $45 million, "Ruth has to provide trustee Irving Picard with a 'complete monthly accounting' listing 'any and all income or other assets received,' along with all of her purchases over $100"—like flying to NC to see Bernie in prison—"and her current bank balance." In lesser Ruth news, there's a "Save Ruth" Cafe Press store.

Mayor Bloomberg sounded off on some issues that came up yesterday. He was upset that Secretary of State Hillary Clinton and the State Department have reversed a policy where NYC collected taxes from foreign governments' diplomatic buildings. About $260 million in unpaid back taxes plus future revenue will be lost, leading the mayor to say, "Since 1873 they've been saying this is taxable... It's just patently unfair to New Yorkers and Americans and it contravenes established policy for 130-odd years and it just doesn't make sense." He also worried that foreign governments would buy properties, since they'd be tax-free, and rent them out. Even Senator Schumer thinks the policy sucks! As for news that the NYPD signed a $1 million contract for typewriters—used for police reports (and which are so cumbersome they may prohibit some cops from filing reports)—Bloomberg said, "Why are they using any is the question you should ask, and where do you find them? That was the thing that I thought about. I didn't think anybody made them anymore."

The latest happy tidings from that fountain of good news named Albany warn that ballooning pension costs may drain local government coffers in the next six years. As reported in today's NY Times, an analysis from the state comptroller's office forecasts that state pension costs will triple to $8 billion by 2015, and the only solution is—you guessed it—there isn't one! Upset by that prospect, NY State Association of Counties Director Stephen J. Acquario tells the Times: "It’s alarming, eye-popping and unthinkable...Where is this money going to come from?" In keeping with local custom, no one in Albany can agree on an answer. Governor Paterson wants to limit pensions for new workers, while Comptroller Thomas DiNapoli thinks instead that counties should borrow money from the state to cover the costs. Others believe a tax increase will have to be in the offing, but of course, the legislature is a bit indisposed at the moment. A strong economic recovery could help matters, but what's the bottom line here? Cut benefits or bottom out, says Zvi Bodie at the Boston University School of Management: "Going forward, we’re going to have to promise less."

Well, that was quick: the Upper West Side location of H&H Bagels reopened this afternoon, after being seized by the government for non-payment of taxes early this morning. The State Department of Taxation and Finance this afternoon told the CityRoom that the retail location of H&H and its Hell's Kitchen bakery owed more than $100,000 in back taxes. Clerks at the UWS bagel store have returned to laying out lox slices and buttering those poppyseed selling plain, unadorned bagels like there's no tomorrow, and have been specifically instructed not to talk about the temporary seizure. A woman at H&H's flagship (identifying herself as “Blanca, just Blanca”) said the seizure was “a misunderstanding that has been cleared up." The tax department differs; CityRoom explains, "so many tax warrants, or liens, had piled up by Friday that the department was still struggling to provide a full accounting to reporters." H&H hopes to have everything cleared up by today, so that no more locks will be hoisted upon on the House of Lox.

Lawmakers will likely be making more cuts to the state budget now that State Comptroller Thomas DiNapoli has revealed "tax revenues declined even more than anticipated in April." According to his press release, the General Fund revenues were 44% less than last year and 5% less (about $239 million) than Governor Paterson's already more-modest projection for the month. DiNapoli warned, "We’ve already tapped nearly all of our unreserved funds so there is very little cushion if revenues continue to fall. We need to watch revenues and spending very closely, because the state may be forced to readjust priorities." Speaking of spending, it's up 12% from last year, mainly due to education, health and the environment. However, other revenue-generating ideas from the state budget—such as increased taxes for higher income brackets and and other fees—won't show up until this month and next. The Department of Taxation and Finance took a glass half full approach, telling the Times, "The state’s finances are in line with the fiscal plan, since decreases in projected revenues were largely offset by decreases in spending."

Last week, western NY billionaire, former gubernatorial candidate and owner of the Buffalo Sabres Tom Golisano announced he was changing his legal address to Florida, to avoid paying about $4.75 million more a year in taxes, thanks to the state's increased taxes for higher income brackets. Yesterday, he told reporters he was frustrated with the State Senate Democrats (he backed quite a few of them during the election) for passing the measures, "One or two of those senators could have said, ‘Wait a minute, we'd better take a look at this budget.' A 9 percent increase in a recession. But none of them had the fortitude to do that, which is absurd." Golisano added, "Nobody wants to leave New York. Just economically, it makes so much sense to leave it, and that's because of the irresponsible government we've had." Still, the State Department of Taxation and Finance tells the Buffalo News, "If you’re a nonresident making money in New York, you are going to pay taxes to some extent." The Buffalo News points out that Golisano is dating Monica Seles (ewww), also splits her time in NY and Florida.

     

Yesterday was tax day, and, as you no doubt know, "tea parties" were held across the nation to protest the current state of the union, which is going to hell because the Muslim terrorist president wasn't even born in America, as these insightful demonstrators know all too well. Last February, a modest group of New Yorkers held their first tea party at City Hall, but yesterday close to 2,000 tea-baggers (yes, ha) spilled out of the park and onto Broadway, eventually overwhelming the wide street on both sides. Tea bags were in short supply, but there were plenty of signs ("Washington: You have run out of our money!"), derision ("If it were a bunch of Democrats this would be unruly!"), and chanting (ranging from "USA!" to "Abolish the Fed!"), which at times drowned out the speakers .

Have some Kleenex handy; grotesque demagogue Rush Limbaugh announced this week that he's turning his back on New York City because of "ridiculous" income tax increases on those who make over $500,000. Though Limbaugh's presence in New York is minimal—he only uses his Fifth Avenue penthouse to take refuge from hurricanes in Florida—the news of his withdrawal came as a relief to many New Yorkers, including Governor Paterson. Asked about Limbaugh's decision this morning, Paterson told reporters, "If I knew that would be the result, I would’ve thought about the taxes earlier."

'Eek, don't raise taxes on the rich!' Bloomberg and other plutocrats warn, or else they'll defiantly tie their sweaters around their necks and move somewhere else, where the lower orders have a better appreciation for trickle-down economics. But according to a pretty thorough article in today's Times, there's actually scant evidence that an income tax hike on the wealthy will engender a Park Avenue strewn with tumbleweed. In fact, after 9/11, the state and the city imposed a temporary surcharge on incomes of more than $100,000, and a comptroller study suggests it had little impact on those who make over $250K.

Today, Governor David Paterson backed off of some controversial proposed taxes, explaining, "Nobody wants to add problems to the citizens of New York. We got there because we couldn't find another place to trim or cut spending." Last December, Paterson unveiled a number of ideas to raise revenue like taxes on non-diet sodas, "digitally delivered entertainment services" (like an iTunes download), and clothing under $110. Apparently the state can avoid resorting to these kind of taxes because of expected federal stimulus fund money. Paterson, Assembly Speaker Sheldon Silver and State Senate Majority Leader Malcolm Smith all appeared at a press conference this morning; Smith said, "This decision lets the public know that they have input in the process and that we are listening."

With tax day two months away, elected officials making sure to remind people about the Earned Income Tax Credit. City Councilman Eric Gioia took to the airwaves to say, "I want New Yorkers to know if you made under $43,000 last year and you have kids, you could qualify for thousands of dollars back... The average recipient receives $2,600 and you could qualify for over $6,000." About 250,000 New Yorkers qualify, and here's IRS info to see if you qualify—apparently childless workers can be eligible, too. During his weekly address, Mayor Bloomberg said that there are a number of tax assistance sites (some are free, some cost $20) set up to help people file their taxes— here are the locations— and promoted the $aveNYC accounts, where you can get free tax help and put your refund into a savings account.

The NY Times reports that a group of Democratic State Senators are introducing a bill to tax the wealthy, to help shore up state revenue: "New York households that earn more than $250,000 in taxable income a year would see their tax rate rise to 8.25 percent from 6.85 percent — the highest rate currently paid. Those who earn more than $500,000 would pay 8.97 percent; and those who earn more than $1 million would pay 10.3 percent." Assembly Speaker Sheldon Silver supports taxing the upper income brackets, while Governor Paterson does not (though he did concede, last December, that might be a possibility). However, State Senate Majority Leader Malcolm Smith said of the bill, "The problem is foreclosures. The problem is a $15 billion deficit. The problem is trying to figure out how do we create jobs in this economy. So in that regard, I’m not sure if taxes is the way you do that.”

Earlier today, President Obama said, "We know the only way to solve the great challenges of our time is to put aside stale ideology and petty partisanship, and embrace what works," while introducing new Commerce Secretary nominee Judd Gregg, a Republican senator. Of course, Gregg is the second nominee for that position—former New Mexico governor Bill Richardson dropped out due to a corruption probe. And, today, two other appointees—Nancy Killefer, Chief Performance Officer nominee, and former Senate majority leader Tom Daschle, Health and Human Services Secretary nominee—withdrew their names from the running due to tax issues, an issue that mired Treasury Secretary Timothy Geithner's confirmation process in some drama.

For a former Senate Majority Leader, Tom Daschle is pretty stupid. Even though he suspected he might have to pay $128,000 in taxes on a car and driver (which were courtesy of the equity firm he was working for) all the way back in June, Daschle never told the Obama transition team when he was selected to head the Department of Health and Human Services last November. Instead, he told them about it a few weeks ago. While Daschle is "deeply embarrassed and disappointed," you can't blame one Democratic senator's aide saying to the NY Times, "It’s totally shocking. Why do we have to continue to have the same story over and over again with these nominees?” Daschle will meet with Senate members today to discuss the matter; Politico suggests that some think Senate Finance Committee member Senator Max Baucus (D-Montana), who defended back taxes-owing Timothy Geithner, is slow-rolling Daschle because, well, he doesn't like him.

Treasury Secretary designate Timothy Geithner, under prodding from the Senate Finance Committee, said that he misfiled his taxes between 2001 and 2003—resulting in unpaid taxes discovered only during his vetting last fall—while using Turbo Tax. Geithner was quick to say, "I want to say I take full responsibility" in taking the fault (and not blame the computer software), and the Washington Post was amused, "The man charged with leading this nation out of recession -- an architect of the $700 billion financial rescue package -- hunched over a computer, surrounded by stacks of paper, trying to figure out his taxes, just like the 18 million other working stiffs who bought TurboTax last year." Geithner's snafu stems from freelance work at the IMF—he thought he was an employee while the IMF just considered him a contractor and did not take out his taxes. At any rate, he's expected to be confirmed next week.

A State Supreme Court judge has blocked a state law that enforces the collection of taxes on cigarettes sold on Indian reservations. Earlier this month, Governor Paterson signed the bill to make sure reservations collect the $2.75 state excise tax, pointing out the law has always stood, it just hasn't been "adequately applied for far too long," not to mention it gave non-Indians "easy access" to tax-free cigarettes. The judge wants government officials to explain themselves next month, noting that the state hasn't even, the Buffalo News reports, "set up a process for providing rebates to Native Americans who pay taxes on cigarettes bought in reservation stores." Justice Margaret A. Murphy also thinks the state hasn't been respectful of the tribes, "You can’t point to [reservation] retailers and wholesalers, call them criminals, then expect them to come to the table."

Quinnipiac University released a new poll today with NY State voters' thoughts on Governor Paterson's recently announced tax proposals to close the billion-dollar deficit. Respondents were opposed to the tax on non-diet sodas, 60% to 37% (even diet soda drinkers opposed it, 58% to 39%). While voters "would rather cut services than raise taxes" 53% to 36%, they do support a tax for people making more than $1 million/year 84% to 13% (Paterson hasn't proposed it, but might turn to it). Overall, though 88% of voters believe that the state has a budget crisis, only 46% approve of how Paterson is handling it. But 53% approve of the job he's doing (to 29% who don't) and 54% (vs. 33%) believe he has the leadership skills to deal with the budget.

Governor Paterson introduced a budget, full of tax hikes and fees for things like regular soda, beer, movie tickets and online music downloads in addition to big cuts to education spending, to combat a $15.4 billion budget deficit this year and next. Many critics have argued that these taxes—aiming to raise $4 billion—are hitting regular people, and now Governor Paterson tells the NY Times the rich may be taxed.

Governor David Paterson's budget proposal that includes a big cut to education funding and a variety of taxes and fees gets worked over. The Daily News, which called it a "slash-and-burn budget," points out, "The proposal, which needs legislative approval, did not include broad-based income tax increases, but relied on smaller ones"—specifically 137—"to raise $4.1 billion from cash-strapped New Yorkers." The head of the State Conservative Party, Michael Long, said of things like reinstating the sales tax on clothing under $110 and taxing spirits, wine and regular soda, "You're sending notice to the people of New York that we really don't want you here. The governor proposed flat spending, but why not actually cut the budget before raising taxes and fees?"

If the MTA's service cuts announced earlier this week do in fact go into effect, 1.3 million New Yorkers will be affected by the changes. During the press conference Thursday, MTA heads Elliot Sander and Dale Hemmerdinger encouraged straphangers to contact their reps in Albany as a last resort to bail out their 1.2 billion deficit. Assembly Speaker Sheldon Silver must have heard the call because yesterday he suggested a tax to help alleviate the burden on the MTA saying, "I am not afraid of a reasonable, responsible tax being part of the solution." The only additional good news following the announcement of cuts is that with the W train gone, plans are to extend the Q to Astoria.

With all of the headlines going to the plethora of angles to come out of the big Election Night fallout, Mayor Bloomberg took the opportunity yesterday to drop a bombshell on us: personal income taxes for city residents could be going up as much as 15%. That idea came out of the mayor's press conference yesterday addressing the grim state of the city economy where he also revealed that the previously promised $400 tax rebate would no longer be happening. That's a move that even #1 Bloomberg ally Speaker Quinn said she was troubled by.

A state judge has ruled that a 77-year-old Bay Ridge tax lawyer must pay back taxes after wrongfully deducting more than $300,000 for prostitutes, porn, sex toys and erotic massages. After the verdict, the defendant William Halby told the Post, "I live a solitary life. I have no social life. I needed that release." So he dutifully documented each liaison in a notebook titled "Tax Journal," in case he ever got audited. Turns out that in 2002 alone, Halby deducted $111,364 for "therapeutic sex" and massages "to relieve osteoarthritis and enhance erectile function through frequent orgasm." He argued that the write-offs were necessary medical expenses. But because "significant portions" of his sex therapy was, you know, illegal, they can't be written off. The state auditor also argued that "in addition to being illegal in New York State, these expenses are not substantiated with receipts."

Now that Representative Charles Rangel has gotten himself into a income tax fix, the tabloids are keeping a closer eye on his goings on. Both the Post and Daily News report that he's stopped proceedings to divorce his wife of 42 years Alma.