So what happens when a tax hike, imposed on the private sector strictly to cover the cost of pay raises for the public sector, does not deliver the funds that were expected?
Well, one can come to the realization that raising taxes in a recession is likely a primary cause in deflating government revenues, and thus cut other areas of the budget in order to provide funds for an ill-advised pay raise, or force the the public union back to the table in order to renegotiate the deal in light of the current economic crisis.
Or you can do what the Democratic governor of New York is doing, and double-down on stupid by dramatically increasing the tax that is helping to crush businesses and reduce state revenue in the first place:
The levy was 0.34 percent, or $3.40 for each $1,000 of payroll, including government payrolls, in the five boroughs and seven suburban counties. It was supposed to raise $1.3 billion a year, but revenues are coming up far short.
No doubt the recession has something to do with that. So raising the rate is akin to squeezing a stone to get more blood. Even if the Legislature foolishly goes along, it won't work.
Paterson wants to raise the rate in the city to 0.54 percent...
It's also impossible to ignore the thought the tax reflects Paterson's campaign calculations. He looks to be trying to balance the state's books on the back of Gotham's taxpayers in the hopes of sparing other voters and gaining their favor...
Using the force of government to extort monies from private sector businesses and individuals in order to pay of the raises of poorly-managed public sector businesses and individuals, all so that the governor can maintain power for another four years. Welcome to governance, Democratic-style...
Is it any wonder that the sales of tar, feathers, and pitchforks are climbing thru the roof?
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