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US News

RED INK DROWNS CITY TAX CUTS

Mayor Bloomberg is going to have a hard time making good on his pledge to lower property taxes if a new report on the city’s finances turns out to be accurate.

The state Financial Control Board said it will be difficult for the city to make ends meet in the near future because higher income and sales taxes enacted this year phase out in fiscal 2007. The two taxes are expected to generate $1 billion this year, $650 million next year and $304 million in fiscal 2006.

Bloomberg, in recent months, has said repeatedly that he’d like to roll back all or part of the 18.5 percent property tax he pushed through the City Council last year.