On Thursday, State Comptroller Tom DiNapoli released an analysis of the potential impact that going over the “fiscal cliff” could have on state residents – including tax increases and a loss of federal aid.
DiNapoli’s report shows federal taxes would rise dramatically on January 1, 2013 for virtually all working New Yorkers, with a 47 percent increase in the payroll tax rate costing New Yorkers $7.7 billion in 2013. Further, 3.4 million New Yorkers would have to pay the Alternative Minimum Tax (AMT), which is currently paid by just 500,000 state residents.
The Comptroller said:
“There is real danger for New York’s economy if America goes over the fiscal cliff. Many New Yorkers are still recovering from the Great Recession and struggling each day to make ends meet — and some are literally digging out from (Superstorm) Sandy’s devastation. The fiscal cliff’s massive one-two economic punch could easily push the state’s economy backward.”
Let’s hope that this can be avoided.