 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
|
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
|
 |
|
|
 |
 |
|
|
|
|
| |
International News>Officials: NY state could lose $3b in taxes, 40,000 jobs- AP |
 |
A new projection shows Wall Street's meltdown will likely cost New York state up to 40,000 private sector jobs and US$3 billion in tax revenues over the next two years, two state officials said Thursday.
The revised numbers in the snapshot of worst case estimates was done Wednesday at the highest levels of New York's state government.
The projection is worse than Governor David Paterson predicted just Tuesday when he said the state could lose some US$1 billion in revenue because of upheaval in the financial sector.
Wall Street is a major economic force in New York state, generating one-fifth of the state's revenues each year.
The officials spoke on condition of anonymity because they were not authorised to comment on the fiscal analysis.
Both hits would be substantial. The total New York state budget including federal funds is about US$120 billion, and the state has about 7.25 million private-sector jobs.
Worst Financial Hit
State officials used the model of the fiscal damage to New York after the September 11, 2001, terrorist attacks. Then, governor, George Pataki, said it was the worst financial hit to New York since the great depression 70 years earlier.
The new analysis includes the stock market drop, lost revenue from transactions and projected lost income tax revenue from Wall Street jobs.
Three of the five major US investment banks - Bear Stearns, Lehman Brothers and Merrill Lynch - have either gone out of business or been driven into the arms of another bank. The two remaining banks, Goldman Sachs Group Inc and Morgan Stanley, are under siege.