He cut state taxes, and city taxes declined over all as well.
Corporate income taxes declined 5.1percentt from January to March compared with the same period the previous year — the third straight quarterly decline.
But merciful prosecutors, while chasing the missing taxes, declined to prosecute Mr Cho, because of his age and his contribution to the country's economic growth.
This reduction in foreign taxes, which can reduce taxes to the I.R.S. dollar for dollar, was a primary reason that corporate taxes declined just 1.3percentt.
Preliminary tax receipts released this week by the state comptroller's office showed that revenue in September from sales, business and other taxes declined by about 7percentt, or $154 million, compared with September 2007.
In 2011, local taxes declined each quarter from 2010 levels by an average of 1percentt.
But what if the tax take declined again or rates went up? "There are serious questions over the country's fiscal sustainability," says Mr Lardy.
The government's funding needs would then rise as income taxes decline.
The wealthiest one percent, who earn an average of $1 million a year, would see their taxes decline about $32,000, the research group said.
The Bush campaign produced figures showing that a family of four with two incomes totaling $47,500 -- the national median -- would see its federal income taxes decline by 56percentt under the Bush plan, to $1,493 from $3,393 under current law.
