NY Rebates Checks and Bloomberg

The New York Post once again featured the war of words between the Mayor and City Council regarding rebate checks and when they will be mailed out. The debate seems to be posturing with the Mayor on one side wanting an increased property tax and the council looking to tell their constituents they provided goodies. From the NY Post:


"We're continuing to work with the City Council on the issue of the rebate and all of the other budgetary challenges created by the financial crisis," Bloomberg spokesman Marc LaVorgna said when asked whether the checks will go out this month.

Also on the table is a 7 percent property-tax increase, which would raise $1.2 billion annually. The real issue here has nothing to do with rebates(because they aren't actually rebates). In the past 5 years, municipalities and states have used "rebates" as a way to circumvent the tax system to provide election year goodies in return for the politician to return to office. The system has gotten so bizarre that in New Jersey, if you actually pay taxes, you have a much higher chance of NOT qualifying for the rebate than if you don't pay taxes (apartment dwellers ALL get the rebate but homeowners generally don't).

With the city in such dire budgetary straits, this should be a no-brainer. But it don't be. Because the council has to pay the bribe it promised. And THAT is why politics in the Northeast is such a joke. There isn't one brave politician who can do the right thing anywhere.

Read the entire thing here.

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