Friday, March 4, 2011

NYC Now Taxes the Cash Businesses Hold

Writes Business Insider founder Henry Blodget:
Yes, in New York, there's a "capital tax" -- a tax on money you have in the bank.

New York, apparently, wants to encourage companies to take as much risk of bankruptcy as possible, by raising or retaining as little cash as possible, so it taxes them on cash they have in the bank.
Yeah, Blodget is bitching, but apparently he doesn't have a problem with other people getting taxed, since in the same post, he writes:
Don't get us wrong. We're not anti-taxes. We get that New York's broke and needs all the help it can get.
Here's where I differ with Blodget. NYC should simply declare bankruptcy and not further Burden the tax payers of NYC. Let the banksters and others who financed NYC's debt take the hit, as opposed to NYC residents.

As far as taxes on cash balances, I say "no". However, since the only people that should pay taxes are those that are in favor of taxes, I say we tax Blodget and his firm, anyway.


  1. Bernanke isn't taxing cash balances enough to fill NYC's budget hole? We need a QE3!

  2. Blodget is a hypocritical hack, like a new-age financial NIMBYer. Call it NIMBA, or "Not In My Bank Account"-- do the taxing anywhere but here!

  3. There was an article on Business Insider about Michael Moore saying cash is a natural resource not "owned" by individuals. Could this be similar? You really just use someone else's assets while you are alive and you have to pay a penalty for taking it out of circulation when you don't invest it.