Only a day after Governor Andrew Cuomo announced a new plan that would raise taxes on those making more $2 million dollars per year, Mayor Bloomberg pledged not to increase New York City tax rates.

The Mayor's comments yesterday come as New York City faces a $2 billion budget shortfall next year, but Bloomberg said that spending cuts would be sufficient.

The Mayor has consistently warned that increased tax levels on the highest earners could spur an exodus from the city to lower tax havens in the Tri-State area, particularly the leafier suburbs of Connecticut and New Jersey. Many of the highest earners in New York City are employed by the financial industry and as the sector continues to struggle, Bloomberg has preferred to focus on budget cuts to right-size the City's budget:

"We are still in the process of implementing $2 billion annually in cuts, and we still have a significant deficit to look at, but we're working on that, and we have no intention of raising taxes," Bloomberg said.

New York City's $66 billion budget for the current fiscal year, which ends June 30, is balanced, but the city faces around a $2 billion deficit for the next fiscal year, partly because of the struggles of Wall Street, the city's economic engine.