Monday :: Oct 17, 2011

Wall Street Whiners


by Mary

What does Wall Street think of those backing OccupyWallStreet?

“Who do you think pays the taxes?” said one longtime money manager. “Financial services are one of the last things we do in this country and do it well. Let’s embrace it. If you want to keep having jobs outsourced, keep attacking financial services. This is just disgruntled people.”

He added that he was disappointed that members of Congress from New York, especially Senator Charles E. Schumer and Senator Kirsten Gillibrand, had not come out swinging for an industry that donates heavily to their campaigns. “They need to understand who their constituency is,” he said.

Generally, bankers dismiss the protesters as gullible and unsophisticated. Not many are willing to say this out loud, for fear of drawing public ire — or the masses to their doorsteps. “Anybody who dismisses them publicly is putting a bull’s-eye on their back,” the hedge fund manager said.

John Paulson, the hedge fund titan who made billions in the financial crisis by betting against the subprime mortgage market, has been the exception. His Upper East Side home was picketed by demonstrators earlier this week, but Mr. Paulson offered a full-throated defense of the Street, even going so far as to defend the tiny sliver of top earners attacked by the Occupy Wall Street protesters — whose signs refer to themselves as “the other 99 percent.”

“The top 1 percent of New Yorkers pay over 40 percent of all income taxes, providing huge benefits to everyone in our city and state,” he said in a statement. “Paulson & Company and its employees have paid hundreds of millions in New York City and New York State taxes in recent years and have created over 100 high-paying jobs in New York City since its formation.”

Perhaps if Mr Paulson paid the same rate for earned income as other New Yorkers, more money could be paid to the 99% so their tax contributions could increase and the number of people working could also go up. When the top 1% takes at least 24% of the income, 40% of the taxes doesn't seem nearly enough.

Mary :: 12:00 AM :: Comments (0) :: Digg It!