Biglaw, Tax Law

Flat Salaries + Higher Taxes = Angry NYC Associates

empire of taxes.JPGNew York City mayor Michael Bloomberg could be preparing to raise taxes:

To close budget gaps in the year that starts next July the mayor is thinking about a combination of sales tax increases and income tax hikes.

“Every city agency must push each dollar further,” Bloomberg said. “We’re going to do that and doing that means making hard choices that will not be popular with everyone or perhaps anyone.”

The mayor proposed raising the income tax by either 7.5 percent or 15 percent.

15 percent? Tastes like loss of purchasing power.

If New York associate salaries remain flat (a near certainty) then the incentive to work in NYC is … free Knicks tickets?

These new taxes could push the cost of living in New York well beyond the expenses of living on the International Space Station:

“Increasing the personal income tax would be a disaster for the city,” said Nicole Gelinas of the Manhattan Institute. “It’s hard to overestimate that fact. We’ve already got the highest local personal income tax in the nation.”

And this is of course before you take into account Obama’s planned tax increases on individuals making more that $250,000.

If you’re a mid-level NYC associate, it might be time to consider the legal market in New Hampshire.

Tax Hikes, Budget Cuts In The Works For NYC [CBS]

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