DiNapoli: Fiscal Cliff Could Cost NY $43B

12:04 AM, Dec 7, 2012   |    comments
  • Share
  • Print
  • - A A A +
  • FILED UNDER

By Joseph Spector, Gannett Albany

If the country goes off the fiscal cliff Jan. 1, New Yorkers could face more than $43 billion in tax increases and lose $609 million in federal aid, Comptroller Thomas DiNapoli said.

"There is real danger ahead for New York's economy if America goes over the fiscal cliff," DiNapoli said in a statement. "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 Sandy's devastation. The fiscal cliff's massive one-two economic punch could easily push the state's economy backward."

The report from the Democratic comptroller comes as New York is also seeking about $40 billion in federal disaster relief from Superstorm Sandy.

If Congress doesn't remedy the fiscal cliff before January, New York would see federal taxes rise, including a 47 percent increase in the payroll tax rate that would cost $7.7 billion. Also, 3.4 million people would have to pay the Alternative Minimum Tax (AMT), up from about 500,000 currently.

He said the change in the AMT would amount to an average of $5,180 more on people's taxes.

"An average New York family with two children would lose $1,000 a year from the reduction of the child credit (from a $1,000 credit per child to $500 credit per child)," DiNapoli wrote. "A low income four-person family with two children making $34,000 could lose an additional $1,000 in tax credits from the changes in the Earned Income Tax Credit and refundability of this credit would be eliminated for many low income families."

 

Most Viewed Articles

Most Watched Videos