UPDATE1-No NYC personal income tax rise due state tax hike-Mayor
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NEW YORK, May 1 (Reuters) - New Yorkers will not have to pay higher personal income taxes because the state has "pre-empted" that strategy by raising its own levy, Mayor Michael Bloomberg said on Friday as he issued his budget plan
The new budget, which starts on July 1, totals $59.4 billion, less than the current $61.2 billion accord.
The mayor, an independent seeking a third term in November, said that narrowing future deficits will require city employee unions to accept higher health care costs and lower pensions for new hires. He urged the state to let the city raise its sales tax a half percentage point hike to 4.5 percent.
This step, combined with resuming charging sales tax on inexpensive clothing, would raise $1 billion and bring the city-state levy to 8.875 percent. Bloomberg also wants a nickel tax on plastic bags to encourage recycling.
"I literally had forgotten about it," he told reporters, when asked how the harsh measures would impact November's election.
Bloomberg said voters were promised that property taxes would not be raised again. A spokesman for Democratic Speaker Christine Quinn, who wanted an income tax hike, said she aims to "find the fairest set of options to balance the budget."
The mayor raised his forecast for city-wide job-losses in the current recession to 328,000 positions -- a 34,000 increase from several months ago. But he did not raise his estimate that the Wall Street financial industry will lose 47,000 jobs.
Asked about the impact of cutting 125 traffic agents, the mayor said: "Drivers will be happy if they break the law and don't get tickets; drivers who obey the law and get stuck in traffic will be furious." For more details, please see web site: here
(Additional reporting by Edith Honan) (Reporting by Joan Gralla; Editing by Diane Craft)
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