As Wall Street executives tighten their belts due to the financial crisis, the State of New York is also experiencing a financial hemorrhage. The recent decision by Goldman Sachs not to pay bonuses to its executives could prove to be costly to the state government as well.New York Gov. David Paterson said the move by Goldman Sachs and other companies to forego its bonuses could cost $178 million in tax revenues for the state.

Well, that is a little money to spare if the benefit would be for the common good. The businesses’ decision to give up the executives’ bonuses for this year would certainly help their organizations, and alleviate the impact of the financial turmoil. That would be better than these companies would end up in bankruptcy. However, the governor even said that the state is already in fiscal trouble. If this crisis would last a little longer and the state would be bankrupt. That would be the challenge now for the governor; how to look for other sources of income besides tax generation.

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Posted by Jones on January 2nd, 2009 :: Filed under $$$ CRISIS, EVERYDAY MONEY STUFF, STOCK MARKET
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