After informing New Yorkers that the City's Budget produced a surplus (yet again!), the may says,

"I believe that a good portion of the surplus revenues we anticipate in the current fiscal year should go back to the New Yorkers..."

It's about time. Last year, the budget produced a tremendous surplus and we saw none of it back in our pockets. It was taken for a "rain-day fund." This year, our budget produced another surplus, a little smaller, and now we deserve to get our money back? I guess I shouldn't complain. Better late than never. It's nice to see our Republican mayor sound Republican.

The mayor proposes a $1 billion tax cut that should help ease some of the pain New Yorkers pay in taxes, so let's review it.

One Billion Dollar Tax Cut
1. $750 million tax relief in Property Taxes
- An Across the Board Tax Cut by 5% for anyone and everyone who pays City Real Estate Taxes.
- A $400 property tax rebate for anyone who owns a home.

2. $250 million tax relief in three other "measures."
- Reduction of the Unincorporated Business Tax
- Targeted reductions in the General Corporate Tax
- Elimination of City sales tax on all clothes and shoes.

Tax Cuts are something all Republicans champion, but only if they are the right tax cuts. Some cuts don't really do anything but offer immediate gratification. These types don't help out the economy as much. We'll see if the mayor's proposal will continue creating budget surpluses or just give instant gratification.

I like the Mayor's proposals. I do not want to sound as if it's not a step in the right direction. It is! But I've never been a fan of the $400 rebate. I'd trade in the homeowner's rebate check for the removal of the 18.5% Real Estate tax increase we saw in 2002. Even a phased reduction of 10% this coming year and the 8.5% the following. If everyone enjoys the reductions in real estate tax, which includes utility companies and landlords who usually transfer any increase to their customers, the burden on all of us isn't felt as much.

Reducing the corporate and business taxes is something I fully support. Removing unnecessary double-taxation allows small businesses to grow and expand, hire more employees and increase wages. But the sales tax is a minimal change to our city's economy. Instead of sales tax, the mayor should reduce income taxes on city residents. Reducing city income taxes and offering ways to reinvests in the city will do more for New York than simply removing sales tax.

There's a lot to chew on with this year's budget proposal and it is a start for building campaigns for Republicans. True, there are Democrats in the City Council that are supporters of easing taxation in areas (mostly from the outer-boroughs), but many of them cannot run for re-election. And it's clear that the new crop of Democrats are becoming more and more liberal. With no clear Republican to succeed Mayor Bloomberg, it will be imperative for New Yorkers to ensure fiscal discipline in the 2010 council. By doing that, it may require electing between 8 to 15 republicans in the 51 seat body.