July 30, 2008 > Wall Street bonus cuts could mean bad news for NYC
Wall Street bonus cuts could mean bad news for NYC
Submitted By AP Wire Service
NEW YORK (AP), Jul 26 _ A bad year on Wall Street may mean trouble for taxpayers too.
Government officials are estimating that New York City's financial firms will slash pay and bonuses for their employees by $18 billion this year.
And that means a big drop-off in taxable income and far less money for the local economy.
City and state officials are already worrying about a shortfall in tax revenues due to the decline.
Wall Street firms employ about 178,000 people in the city. Those workers account for about 10 percent of the city's tax revenue and 20 percent of the state's revenue.
Wall Street also slashed bonuses during the lean months after the Sept. 11 terror attacks. This decline would be three times that amount.
Information from: The New York Times, http://www.nytimes.com