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.
Last year, the NY Times examined how Senator Schumer defends hedge funds' and private equity firms' low tax rate.
Photograph of City Hall by Triborough on Flickr
