Tax Timing

Newsday’s headline on the wire story says it all: “City Budget: No Layoffs, No New Taxes.”

And we have to admit that, back when we were over at the Sun pounding the mayor for breaking his no-new-taxes promise in his second budget, we probably didn’t pay sufficient attention to the people who were telling us it was a smart piece of politics.

Smart, because once you’ve decided to raise taxes, you should do it as soon as possible. You net more money, and it’s half-forgotten by the time the election rolls around.

Also half-forgotten is that old promise: “Raising taxes is not an option.”

One footnote: We join E.J. McMahon in being surprised to see that “temporary” sales and income tax surcharges, both set to expire this year, are actually allowed to expire under this budget.

Tax Timing