Photo credit: Marla Maritzer.

New York City Comptroller William C. Thompson, Jr. challenges the Mayor’s remarks dismissing efforts to increase taxes on the wealthiest New Yorkers at a City Hall news conference on March 8, 2009.

New York City Comptroller William C. Thompson, Jr. today harshly criticized Mayor Bloomberg’s remarks dismissing imposing steeper taxes on the wealthy, charging that the Mayor is out-of-touch with the realities faced by many New Yorkers.

“The comments by Michael Bloomberg sadly illustrate that he just doesn’t get it,” Thompson said. “Our country and our city are facing one of the most difficult economic challenges in history. During these tough times, our working families, who make this city great, are struggling to keep their homes, their jobs and their health care. We need fair and balanced solutions that protect them.  We need leadership that understands their needs and challenges.”

On Friday, during his weekly radio show on WOR, Bloomberg responded to a protest – attended by upwards of 40,000 people - outside City Hall in which demonstrators urged him to raise taxes on those who earn more than $250,000.

“We can tax the rich,” Bloomberg reportedly said, “except that, if you haven't looked at the stock market lately, they aren't making any money.” He later added: “You know, the yelling and screaming about the rich - we want rich from around this country to move here. We love the rich people.”

Thompson sharply faulted the mayor for being tone-deaf to the needs of many New Yorkers.

“This is one of the clearest defenses I’ve ever read of the Reagan-Bush Republican philosophy of trickle-down economics,” Thompson said. “For eight years, George Bush said virtually the same thing our Mayor said on Friday - we need to give tax cuts to the rich, because it will trickle down to everyone in society.”

“I have a very different philosophy. I believe that our working families and small businesses are the ones who drive our economy.  I believe that government should be focused on helping the middle class.  And I believe that the trickle-down philosophy has caused us to be in the mess that the country is in today.”

Added Thompson: “I think that at times, the Mayor’s wealth has caused him to be out of touch with what most New Yorkers experience every day.”

Thompson is poised to testify Monday before the New York City Council’s Finance Committee. During that testimony, he will recommend a 4.3 percent tax rate on taxpayers with taxable income of $500,000 and a 4.8 percent tax on taxpayers with taxable income of a million dollars or more, compared to the current rate of roughly 3.65 percent.

As with the State income tax, these rates would be flat rates rather than applying only to the margin of income. Based on estimates by Thompson‘s office, this would yield nearly $1 billion Calendar Year 2009 and a similar amount in the City Fiscal Year 2010.

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