New York City, grappling with the aftershocks of the global financial crisis, has been forced to refund more than $800 million to companies that overpaid their taxes this year based on expectations of a more robust business performance.The refunds — three times the amount typically returned — have triggered deep unease among city budget officials, who are already struggling with weakening revenue and face pressure to slash services and raise taxes.
They come as the city, according to the Bloomberg administration, faces a budget shortfall that is expected to climb to $4 billion over the next two years. And having to give back such a large amount of money is certainly going to make the situation even bleaker.
Each year, companies estimate their tax liabilities based largely on their performance in prior years. And because the first half of 2007 was so lucrative for many financial firms and other companies in New York, many prepaid millions of dollars more in taxes. But with revenues collapsing this year, companies owe the city much less in taxes.
In a departure from previous years, when the companies would simply instruct the city to apply any overpayment to subsequent tax bills, they are demanding the cash now.
City Refunds $800 Million in Corporate Taxes
The financial genius running our fair city said he looked into his crystal ball and knew all this would happen years ago. So what gives?
Four more years!
7 comments:
Why are homeowners' rebates (refunds) of $256 Million being kept, but corporate refunds of $804 Million being sent out?
POWER!
Homeowners can threaten to leave and the Commissar says "So what?".
Corporations threaten to leave and the Commissar says "Then whose ass can I kiss?", "do the CEOs actually believe that I want to be left alone with the "Little People?".
Why didn't this "Financial Genius" see this coming and have measures ready to handle the situation?
Isn't his reason for eternal power that he is a "Titan of Commerce" who will get the city through the financial crisis that he caused by his own arrogant stupidity?
But Emperor Michael R. Bonaparte
still insists on pimping for projects like Willets Point (on Chen Creek)
in spite of a spiraling downfall in NYC's economy just to please the likes of Wilpon, Muss and all of his wealthy friends!
CUT THOSE TAX INCENTIVES FOR DEVELOPERS instead of nickel and diming us taxpayers (with diminished city services to boot)!
where will he get the $$$ for willets point? maybe he should ask seth pinsky to turn in the yankee tix he extorted or maybe even have hiram monster-rat & tully pay for it with the windfall they both got
Taxpayer-
The rebate isn't a refund. It's a temporary tax cut.
The refund is a return of a pre-overpayment of a tax.
Fifty years of driving off business and welcoming social parasites who vote democratic brought us here.
If you think Mark Green or Freddy Ferrer would have done better than Mike Bloomberg, drop the crack pipe and step away from the keyboard.
and lets build willets point with no money and tax the people of new york .
please help get this mayor out and fast he's killing us
TO NEVERSLEEP:
REBATE
1. a return of part of the original payment for some service or merchandise; partial refund.
REFUND
1. to give back or restore (esp. money); repay.
It's not so difficult; look it up.
"If you think Mark Green or Freddy Ferrer would have done better than Mike Bloomberg, drop the crack pipe and step away from the keyboard."
How did you get to this comment? Did you swallow your crackpipe?
Will Ackerman ackompany Hillary to State? He already has a boat to shuttle her about with!
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