In a room about three times the size of the space given to Comptroller Bill Thompson and a warm crowd to fill it, Mayor Michael Bloomberg reiterated his economic plan for a third term at a Crain’s breakfast this morning, arguing the city couldn’t afford his opponent’s proposals.
Like Thompson was asked last week, moderator and Crain’s Executive Director Greg David asked Bloomberg what he would do to close the $5 billion budget gap. Bloomberg responded with cutting agency budgets — except core services like police, fire and teachers — and health and pension costs. Last week, Thompson said he would cut spending, sans specifics, but he has not signed onto the creation of a new pension tier, which Bloomberg has been pushing for for the last several years.
In response, David took on Bloomberg on a recent ad charging the comptroller with flip-flopping on the millionaire’s tax, which Thompson wants to implement but spoke out against in October 2008. David then reminded the mayor that he too committed to not raise taxes in his first run for mayor only to implement the largest property tax increase less than a year later.
“It sounds like the pot is calling the kettle black here,” said David.
The mayor disagreed.
“No, I don’t think so. Nobody can ever promise for sure that they cant raise taxes. We had a disaster staring at us in the face after 2001 — the terrible tragedy on 9-11. The one thing you cannot do is stop fighting the bad guys.”
The mayor continued.
“We did raise the taxes, if you remember, but when the economy improved, we reduced the taxes again,” the mayor added, referring to the property tax rebate implemented in fiscal year 2005 and the 7 percent property tax reduction in fiscal year 2008. “The real problem with my opponents proposals is he proposes spending millions of millions of dollars. He’s committed to not reducing the size of the work force. Where is the money going to come from?”
Thompson has said he wants to give a tax credit for those businesses under the s corporation tax — a type of double taxation for corporate shareholders — which the Bloomberg campaign alleges would cost $500 million. Thompson has said he considers workforce reductions a last resort. Cutting waste comes first, the comptroller argues.
Bloomberg this morning committed again to not raising taxes for the next year.
“I believe in my heart of hearts that we can get through next year without raising taxes,” Bloomberg said. “It will not be easy. We will not be able to do everything we want.”
By Courtney Gross on October 22, 2009, 11:21 am
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