Bloomberg vows to cut NYC taxes, if he can

By Joan Gralla

NEW YORK (Reuters) - New York City Mayor Michael Bloomberg said on Thursday he was "committed" to a $1.25 billion tax rebate and unveiled high-tech improvements to city services, as speculation mounts he will run for president.

Two days after strategists from both parties launched The Draft Bloomberg Committee, the independent mayor said he wants to improve city life by asking 100,000 New Yorkers their opinions of services, studying ways to modernize government, and improving food at hospitals and schools.

He cautioned in his annual State of the City address that his plan to give homeowners another $400 tax rebate and slice the property tax rate by 7.0 percent for the second year in a row depended on "a variety of factors unknown today," including the economy's health and state and federal aid.

Though New York City's real estate market has largely withstood the nation's housing bust, Wall Street's multibillion dollar write-downs of subprime mortgage investments could hammer the city as this sector produces 9.0 percent of its personal and business taxes.

Bloomberg, who says he is not a candidate for president, outlined a series of ways to harness technology that he said reflect his experience as a founder of the news and data company that bears his name.

"That's how I built my business and that's the approach I've brought to a city government that was insular, provincial and married to the conventional," Bloomberg said, offering a hint of how he might wish to transform Washington.

High-tech proposals included adding satellite-based mapping technology on school buses and emergency vehicles and using a wireless network to quickly deliver mugshots and rap sheets to police, he said. Crime victims or witnesses will be able to send the police cell phone pictures.

Urging the state to require DNA fingerprints from everyone who is arrested, Bloomberg offered a "six-figure prize" to the inventor of a quick way to analyze DNA at crime scenes.

New York should follow California's lead and require gun-makers to microstamp their weapons to improve crime-solving and create the first city database of firearms evidence.

Two of Bloomberg's platforms, crime-fighting and tax-cutting, have prompted comparisons with former Mayor Rudolph Giuliani, who is seeking the Republican presidential nomination. In his last full year in office, Giuliani cut taxes about $1.3 billion, after subtracting reductions that he changed his mind about or were state initiatives, according to the city's Independent Budget Office.

Bloomberg, who prides himself on tackling controversies, from banning trans-fats in restaurants and smoking in bars, dived into the national battle over immigration. "This is what makes America great."

"To those who are wailing against immigration, to those politicians who, all of a sudden, have embraced xenophobia, I say: open your eyes," Bloomberg said.

The few national policies Bloomberg recommended mainly focused on using taxes to fight poverty and make fathers more responsible, such as ending the marriage penalty on the Earned Income Tax Credit and lowering the threshold to 21 from 25 years old. "Congress should withhold the money from any father who isn't up to date on child support," he said.

A new program for seniors will delve into ways to improve their lives, including ensuring they can get healthcare in their homes instead of institutions. The number of New Yorkers who are more than 65 years old will leap 20 percent in 25 years, Bloomberg said.

The mayor pledged to continue to improve schools and end social promotion for eighth graders, as he did for three other grades. In his campaign for a second four-year term, Bloomberg told voters to hold him accountable for fixing the nation's biggest school system. Graduation rates have now climbed by 20 percent, he said.