Tags: newyork | nyc | billdeblasio | economy | bankruptcy

NY Post: NYC Dangerously Close to Bankruptcy, Experts Say

mayor bill de blasio speaks with gov. andrew cuomo watching
New York City Mayor Bill de Blasio speaks at a press conference with Governor of New York Andrew Cuomo (Spencer Platt/Getty Images)

By    |   Sunday, 10 March 2019 09:32 AM

Here is an inconvenient projection for politicians from Democratic-controlled New York City: It is spiraling toward bankruptcy, according to the New York Post.

With Mayor Bill de Blasio planning to add as much as $3 billion to the $89.2B budget, amid outward migration in high-tax states caused by tax reform, a U.S. economic recession puts NYC "perilously near total fiscal disaster," according to the report.

"New York City could go bankrupt, absolutely," American Institute for Economic Research economist Peter C. Earle told the Post. "In that case, the city would get temporary protection from its creditors, but it would be very difficult for the city to take on new debt."

Already, New York state is ranked No. 1 nationwide in state and local tax burden, and the top 1 percent of New York City earners pay some 50 percent of Big Apple income tax revenue, per the Post. If businesses continue to flee to lower tax states while NYC spending increases, it could be doomsday, economists warn.


"The city is running a deficit and could be in a real difficult spot if we had a recession, or a further flight of individuals because of tax reform," Vested's chief economist Milton Ezrati told the post.

"New York is already in a difficult financial spot, but it would be in an impossible situation if we had any kind of setback."

© 2019 Newsmax. All rights reserved.

   
1Like our page
2Share
US
Here is an inconvenient projection for politicians from Democratic-controlled New York City: It is spiraling toward bankruptcy, according to the New York Post....
newyork, nyc, billdeblasio, economy, bankruptcy
228
2019-32-10
Sunday, 10 March 2019 09:32 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved