CountryBoy
Well-known member
More Cities on Brink of Bankruptcy
The possibility of a bankruptcy filing by the city of Harrisburg, Pa., the state capital, looms large these days—and it could be the first in a series, say some Wall Street traders.
The overall problem is that the $2.8 trillion muni bond market, long considered one of the safest havens for investors, now faces a daunting level of debt, as cities from Los Angeles to New York struggle with an array of headaches, including less tax revenue and high labor costs.
According to remarks made by Harrisburg mayor Thompson in April, the city spends rought 70 percent of its annual budget on labor.
Cities can always raise taxes to fight a budget shortfall. But costly projects, fewer people in the workforce and more demand for city services can make budgets tough to square these days.
http://www.cnbc.com/id/37354955
Our city tried to pass a 1% income tax on gross income for anyone that worked in the city. They withdrew it due to the uproar, because they didn't consider any other options. They'll be more of this. :worried:
The possibility of a bankruptcy filing by the city of Harrisburg, Pa., the state capital, looms large these days—and it could be the first in a series, say some Wall Street traders.
The overall problem is that the $2.8 trillion muni bond market, long considered one of the safest havens for investors, now faces a daunting level of debt, as cities from Los Angeles to New York struggle with an array of headaches, including less tax revenue and high labor costs.
According to remarks made by Harrisburg mayor Thompson in April, the city spends rought 70 percent of its annual budget on labor.
Cities can always raise taxes to fight a budget shortfall. But costly projects, fewer people in the workforce and more demand for city services can make budgets tough to square these days.
http://www.cnbc.com/id/37354955
Our city tried to pass a 1% income tax on gross income for anyone that worked in the city. They withdrew it due to the uproar, because they didn't consider any other options. They'll be more of this. :worried: