About 700,000 city residents live in households that earn less than $45,000 a year. Those households aren’t required to pay state or federal income tax, but they still have to pay income tax in the city.
Looking for ways to stimulate spending in a recession, City Council Speaker Christine Quinn, along with State Senator Liz Krueger and others, say they’re going to propose legislation to get rid of the income tax.
That would mean an extra $320 dollars a year for a whole lot of us — but it would also mean about $72 million less in revenue for the city. But what’s a few tens of millions with Obama bailout money on the way?