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Partnership for NYC CEO Kathryn Wylde on the potential impact on the unemployment rate in New York of tax hikes on the wealthy.
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-- thirteen days and counting for congress to make a deal on the fiscal cliff otherwise taxes are going up but will be uncertainty force New Yorkers.
Especially some well to do people to actually leave the state.
Kathy -- is watching this closely she is partnership for New York City CEO and president very concerned about what an exodus will do.
To -- York's already high unemployment rate right there on your screen that.
Kathy what could -- -- to British point seven.
Percent -- well there's great concern about the whole economy of the city the unemployment rate in business continuity in the end of the country for that matter and what we're looking at is the potential if we go over the fiscal cliff.
That we could jump.
Very quickly into a global recession a double dip recession have unemployment rates that.
Our double digits again OK would you say eleven plus percent to eleven plus percent absolutely eleven plus percent now let me just explain what you do you deal with a lot of CEOs you get them in a couple of discussions and conversations to find out what it is they need.
To flourish in this city this state this country correct what are you hearing as the number one thing.
Well number one is to.
Fort Washington to get its act together come to a bipartisan resolution of our huge debt situation where.
In Q -- -- at the rate of three billion dollars a day.
And at this rate we are going to drive this nation into the ground and we're gonna really -- horrible problem for.
The economic future and our kids you are part of the fix the debt campaign and we've had many CEOs power CEOs on this fix the debt campaign groups so many of them here in New York as well but.
What would you say suffice it to you that the solution may perhaps be that higher -- -- folks we'll have their taxes.
-- and -- sort of disproportionately.
Depends on how you look at it of course but.
And you say that in the Tri-State area for those of you don't know that -- it's Connecticut New Jersey New York.
Would really be hurt because of our higher concentration of higher -- -- people we have the highest concentration of high income people in the country and absolutely.
Our tax rates go up.
At the -- when it goes up but the high -- we get really hurt.
But the fact is that increase in tax rates.
Revenue rates are going to be necessary as part of the solution.
It's got its only part of the solution and we have to have a long term fix that includes Medicare reductions and the other kind of cost fixes the Social Security efforts the -- that we need to make as well.
So we'd been pushing for a long term -- and -- right out front.
Yes New York gets hurt on the higher -- and we're willing to be part of that because the country will benefit so that as the lesser of two evils that going over the fiscal cliff absolutely.
What are you hearing you happy -- of the top business people in the world in fact.
You know look we were just talking about pension all possibly being considered for Treasury Secretary you know him well you speak to him often.
He just stepped down -- our.
Chairman.
Co chairman on Friday.
So he's.
Do you think it make a good Treasury Secretary he's terrific but we're very lucky if if -- inject -- -- far the candidates as reported they're both New Yorkers.
And they're both very Smart about our economy and the decisions that have to make to keep our financial system strong -- you would have access that we wouldn't have bad choice either way either way.
You mentioned Social Security.
-- talking about cutting Social Security for another talk about Medicare Medicaid entitlement -- defense etc.
but.
Should Social Security be enveloped wrapped into all of this spending cutting.
Well I think what they've put forward with president put forward is be an effort to.
Tying the Social Security increases more practically to increase in the cost of living and that's it a step in the right direction toward.
Thinking about the future the next generation.
And what they're going to inherit from us she has the ear of the biggest CEOs around -- wild thank you so much we appreciate you being here.
She's partnership for New York City CEO and president Dow -- and that's.
