What Goes Around Comes Around

what-goes-around-comes-aroundNew York Gov. David Paterson said Friday that because bonuses were canceled for just six Goldman Sachs executives, New York state income tax revenue will decrease by $178 million.

Goldman Sachs decided to capitulate to New York Attorney General Andrew Cuomo and the political-media establishment, all shouting that Wall Street companies receiving cash from the federal bailout fund shouldn’t pay out the usual annual bonuses to executives.

Governor Paterson didn’t dare disagree with politically correct dogma, so he joined  the establishment chorus, declaring that not paying the bonuses was the right thing to do.

But the state is already in a fiscal crisis due to the continuing negligence of the Legislature and of Paterson himself.  Usually,  taxing Wall Street brings in a third of state revenue.  So, if “doing the right thing” spreads to too many Wall Street firms, the Governor will soon join the gaggle of eminent panhandlers from industry and state governments, converging on Congress, demanding  a share of bailout largesse.

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