Laughing at the Laffer Curve?

As the economic recession sharply deepens, the Tax Foundation reports that New York City residents may soon face a top state and local personal income tax rate of 11.375%. Not surprisingly, New Yorkers already pay the highest and most broadly burdensome top marginal income tax rate in the country: 10.498% on dollar $50,001 of taxable income. So, are Governor Patterson and Mayor Bloomberg dismissing the lessons of the Laffer curve? They very well may be. 

Consider the following:

• In November, the national unemployment rate rose to 6.7%. The last reported New York City unemployment rate was high as well, clocking in at 5.7% in October 2008.

• The state of the New York City real estate market is anything but strong, as many residential buildings are suffering from falling rents and rising vacancy rates. Additionally, the commercial real estate vacancy rate is poised to boom in the coming year, which could pose significant hurdles to Manhattan's economic recovery.
  

Is this the best time to raise a top marginal income tax rate that already captures anyone making over $50,000/year? I cannot imagine how that could be the case.