While many think Wall Street executives don't deserve bonuses, given the mess the economy's in, State Comptroller Thomas DiNapoli says it's actually not great that Wall Street bonuses fell 44% last year. Why? Because that means $1 billion less in revenue to the state—and $275 million less to NYC. According to the AP, "Mr. DiNapoli estimates in a report released Wednesday that the securities industry paid its New York City employees roughly $18 billion in bonuses for 2008, compared with nearly $33 billion in 2007." Wall Street bonuses, before the fallout of last fall, "accounted for up to 20% of state tax revenues and 12% of city tax revenues." Another thing that'll hit the city: Tax incentives to financial firms headquarters in NYC added up to "a tax credit of $31.3 billion for 2008, which will reduce the firms’ future tax payments for years to come."
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