Assembly Speaker Sheldon Silver will abandon his controversial plan for a "millionaire's tax" to raise billions of dollars in new revenues because of the Wall Street collapse, a published report said.
The New York Post reported Monday that Silver, whose Democrat-controlled legislative branch approved the tax in August, told associates over the past few days that he has had a change of heart "because of the meltdown on Wall Street.”
A source told the Post "Because of what is happening to the New York economy and to Wall Street in particular, with all the losses to so many people there, Shelly doesn't believe this is the time to be raising a tax on the wealthy, many of whom are a lot less so."
Silver’s Lower East Side district also includes Wall Street.
Silver's decision comes as a special legislative session aimed at slashing $2 billion from the current state budget is just three weeks away.
Silver's proposed millionaire's tax has been opposed by Gov. David Paterson and Senate Majority Leader Dean Skelos (R-Nassau). But, the legislation passed the Assembly by a vote of 118 to 24 in August - with nearly 20 Republicans also voting in favor.