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New Yorkers could be on the hook for $43 billion in tax increases and a loss of $609 million in federal aid if Congress and the Barack Obama administration fail to solve the nation’s deficit and debt problems, state Comptroller Thomas DiNapoli said Thursday.
“There is real danger ahead for New York’s economy if America goes over the fiscal cliff,” DiNapoli told the Business and Labor Coalition of New York in New York City.
“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 (hurricane) Sandy’s devastation. The fiscal cliff’s massive one-two economic punch could easily push the state’s economy backward.”
Federal taxes for virtually all New York residents would rise sharply on Jan. 1, if an agreement is not reached by the end of December, with a pending 47 percent hike in the payroll tax rate costing $7.7 billion next year and reducing workers’ paychecks, DiNapoli said.
An additional 3.4 million New Yorkers would be required to pay the alternative minimum tax originally created by Congress to ensure high-income earners pay their fair share of taxes, DiNapoli said.
“Voters sent a clear signal in November that a deal must be done and that there must be a balanced approach to increased revenues and spending cuts,” DiNapoli said in a statement.
“New York’s congressional delegation and President Obama are working hard to achieve this goal and they have my continued support as they fight for New Yorkers. Now is the time for Washington to show leadership for the good of the country with a reasoned compromise that puts us on the right path.”
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