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DiNapoli: Fiscal Cliff Would Cost NY Dearly

Thursday, December 06, 2012

New Yorkers will face a $43 billion tax hike next year if Washington does nothing to avert the so-called fiscal cliff, according to state Comptroller Tom DiNapoli, who calls the planned tax hikes and spending cuts an "anti-stimulus" for the state's economy.

The planned rise in payroll taxes alone would take $7.6 billion out of New Yorkers' pockets, according to a report from DiNapoli's office.

A reduction in the child tax credit would cost the average two-child family about $1,000.

And the number of filers paying the alternative minimum tax, aimed at high earners, would increase from 500,000 to 3.4 million.

The fiscal cliff would also mean a reduction in federal aid to the state, of about $600 million.

The president and Congressional leaders are looking for alternative ways to raise needed revenues. One option would be to limiting the itemized deductions people can take on their tax returns.

DiNapoli said that would be a mistake: "Because New York has a higher cost of living and higher salaries, that could really hurt not just wealthy people but very middle class people," he said.

DiNapoli is not opposed to higher taxes on high earners, many of whom live in New York.

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