New York, NY (AHN) - Despite its notoriety as one of America's most expensive cities, New York is preparing to gives its residents some relief. During his annual State of the City address on Wednesday, NYC Mayor Michael Bloomberg announced a proposed $1 billion in tax cuts on property, retail sales and small-business revenue.
As a result of New York City's booming real estate and Wall Street earnings, New York residents will enjoy a property tax cut of around 5 percent as well as the elimination of the 4-percent city sales tax on clothing and footwear, costing the city about $110 million in revenue.
The Republican mayor, who earned his fortune as founder and majority owner of Bloomberg News, plans to further discuss the city's financial outlook during his January 25 speech proposing his 2008 fiscal budget, subject to approval by the New York City Council.
Meanwhile, the Independent Budget Office, which monitors and oversees city finances, projected a $2.1 billion surplus for New York City in the current fiscal year and a $688 million surplus in 2008.
Last year, Mayor Bloomberg used the city's hefty $5 billion budget surplus to help fund retirees' healthcare costs and to offset the city's deficits and expenses.
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