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Stephen Malanga over at the always-thought-provoking City Journal writes about a new friend or foe list New York is keeping on Washington politicians. The criteria is allegedly how much good each does for New York City. Turns out NYC receives less federal money than other major cities. Thought not because of medicare (four times the average) nor food stamps (NYC receives twice the national average). No, the deficit is one of NYC's own creation, and arises from its philosophical outlook: What actually causes the city’s payments deficit with Washington is the fact that the Defense Department spends so little money here in the city—an average of just $75 per capita, compared with defense spending of about $835 per capita nationwide. In part, this low spending is a function of New York’s attitudes toward our armed forces. Most of the city’s congressional delegation and city council members, for instance, opposed the Reagan administration’s efforts to build a naval base on Staten Island in the 1980s, and later key city leaders lobbied to have the base shut, though had it been fully staffed the Homeport would have brought about $100 million a year in federal salaries to New York and helped revive the shipbuilding business along the Brooklyn waterfront—a big boost to the local economy. So what does benefit New York City? Another thing they actually oppose... The Manhattan Institute’s E.J. McMahon estimates that the first round of the recent federal tax cut kept $1 billion in the city that otherwise would have gone to Washington. Over the ten-year life of that tax cut, city residents and business would keep as much as $40 billion from traveling to Washington. Despite this, New York’s own representatives consistently oppose federal tax cuts and even support tax hikes. Guess NYC is't overtaxed yet! Don't cry for thee, Tribeca... Add your two cents...
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