Mayor: A.C. cannot afford to save Taj

ATLANTIC CITY

- Atlantic City's mayor said yesterday that he cannot agree to massive tax reductions sought by the owners of the Trump Taj Mahal Casino Resort, throwing into serious doubt an already long-shot plan by billionaire Carl Icahn to buy and save the casino and its 2,800 jobs.

Mayor Don Guardian told the Associated Press he cannot agree to the massive tax rollbacks, which are a key component of what Trump Entertainment resorts and Icahn are demanding in return for pumping $100 million into it and keeping it open.

"Given the difficult economic situation in Atlantic City, we are not in a position to accept these requests," Guardian told the AP.

The proposal calls for the city to reduce the tax assessments of Trump Plaza, which closed on Sept. 16, from $248 million to $40 million and for the Taj Mahal from $1 billion to $300 million.

Icahn is considering spending $100 million to save the casino.

Icahn's offer came with considerable strings attached: He is willing to consider the bailout "if and only if" he gets big givebacks from the casino-workers union, steep tax breaks from Atlantic City and county, and $25 million in funds from a New Jersey agency.