Metaphorically speaking, that is, according to the NY Post:
Congressional plans to fund a massive health-care overhaul could have a job-killing effect on New York, creating a tax rate of nearly 60 percent for the state’s top earners and possibly pressuring small-business owners to shed workers.
New York is in dire economic staits and this has a chance of hitting it when it’s down, creating more economic problems for the state and especially the city. The NY Post is on the case, with several articles and an editorial explaining the ramifications for New York in no uncertain terms:
The impact wouldn’t be limited to Park Avenue swells. Much of the taxable income in the highest brackets is reported by owners of and investors in small businesses. Higher income taxes will drain the working capital of small firms, sapping the resources they’ll have to add jobs and recover from the recession.
And small businesses who fail to offer health insurance to their employees will be slapped with another tax — an 8 percent payroll tax — under the House plan.
If enacted, the House bill would be an economic double whammy for [New York], with its high average incomes and disproportionately large share of the nation’s wealthiest households — because Obama already intends to raise taxes on the very same people at the same time, undoing tax cuts enacted starting in 2001 under President George W. Bush.
New York state voted overwhelmingly for Obama, 62% against McCain’s 37%. And that was just the state; the city went for Obama by a whopping margin (I’m finding it difficult to get the total tally; this article is the only one I’ve been able to find so far with any figures for New York City as opposed to the state, and it says the Bronx went 88% for Obama, Manhattan 85%, Brooklyn 79%, Queens 74%, and much-smaller Staten Island went for McCain 52%.).
Was this the sort of change so many New Yorkers hoped for?
Back in 1975 New York City was in bad economic shape as well, facing bankruptcy. One of the main reasons for this was the swelling of its welfare rolls, the result of an an orchestrated Alinsky-esque Cloward-Piven strategy by the National Welfare Rights Organization under the suggestion of Cloward and Piven, who:
…proposed a “massive drive to recruit the poor onto the welfare rolls.” Cloward and Piven calculated that persuading even a fraction of potential welfare recipients to demand their entitlements would bankrupt the system. The result, they predicted, would be “a profound financial and political crisis” that would unleash “powerful forces”¦ for major economic reform at the national level.”
President Gerald Ford got a bad rap back then for telling the city to “drop dead!”, but he actually never said it; it was a headline in the Daily News.
In fact, Ford ended up bailing out the city, although the bad press he originally got helped doom his re-election chances.
Bad press is not one of Obama’s problems. Except for a few publications such as today’s Post, the leading New York City papers don’t seem to even be noticing the effect this will have on the local finances. I looked in the Daily News and the Times today to see whether they’re covering the story, and found nary a word (if you can locate anything, let me know—I’d love to be wrong about this and see some fairness in the coverage).
New Yorkers: be careful what you wish for.


