Mayor Argues Against Low Taxes, Rates
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As America’s economy begins to take center stage in the presidential campaign, Mayor Bloomberg is arguing that one problem with the idea of low taxes and low interest rates is that cutting them “probably won’t do very much” to stimulate growth during periods of economic decline.
Responding to a question yesterday about whether the next president will have to raise taxes, Mr. Bloomberg said he is not suggesting there be high taxes and high interest rates, but pointing out that it’s easier to stimulate the economy when high taxes and high interest rates are lowered.
“The country has some very serious economic problems and we are not addressing those problems,” he said, speaking at a press conference at the Harlem Renaissance School. “And whether or not your raise taxes or lower taxes, whether you have a stimulus in one ways or another, the next president and the next Congress is going to be charged with trying to help an economy and help an awful lot more people.”
The mayor, considered a potential presidential candidate, is facing a debate over taxes in the city as he prepares to announce, during his annual State of the City address on Thursday and with the release of the city’s preliminary budget the following week, ways to close a projected $3.1 billion budget gap.
His administration may be considering raising property taxes and ending a $400 property tax rebate for homeowners. Last year, the mayor cut property taxes by 7%, but said he would keep an eye on the city’s finances to determine whether it could afford to the keep the cut in future years.
Mr. Bloomberg publicly denies he is a candidate for president, but he is conducting a nationwide polling and voter analysis, according to an Associated Press report. His opinions on tax policy and plans to close the city’s budget gap are expected to come under heightened scrutiny amid speculation he will make a White House run.
Three Democratic candidates, senators Edwards, Obama, and Clinton, have said they would raise federal taxes.
When asked yesterday if he is paying for national polling right now, Mr. Bloomberg offered up another denial. “No matter how many times you ask the question, I’m not a candidate,” he said. “That’s the answer. I can’t go into nitpicking. This is ridiculous.”
