NEW YORK, NY January 30, 2009 —Mayor Bloomberg made his preliminary proposals on how to close the massive budget deficit going forward.

If his cuts are approved, more than 300,000 jobs will be lost in New York City by next year. The mayor also wants to raise the sales tax.

Kathryn Wylde of the Partnership For New York City says as consumers pinch more pennies that's hard to take.

WYLDE: And particularly an expansion of areas we are not used to having sales tax on so I can't say that's easily digestible. On the other hand neither would be an income tax increase, so there are no good solutions.

REPORTER: The city sales tax would rise from 8.375 to 8.625 percent if Bloomberg's preliminary budget is approved.