As of the last couple of months, the stock market has taken a massive decline, seeing the S&P 500, and DOW Jones, among other being down week after week. NYC’s estimated personal income-tax payments in June declined to their lowest level since 2017, making this the first time the stock market has harmed the revenue of the city, according to City Comptroller Brad Lander.
The Numbers
For June, estimated tax payments were 31% lower than they were at this time in 2022, data released Monday by the fiscal watchdogs showed. The U.S stock market last month entered a bear market for the fourth time in the last 2 decades. A bear market indicates that the majority of the stocks on the market are falling, which usually encourages selling. The S&P 500 Index has been down a total of 19% since the start of this year.
The City’s adopted budget has to take the slowing and everchanging economy as well as the decline of the stock market into account, the total budget projects total personal income tax revenue to fall around 7.7% in the fiscal year for 2023 when compared to 2022.
Other states are watching
States like California are also closely watching what is going on with Wall Street. Capital Gains realizations as a share of the state’s personal income collections are the highest since the late 1990s. Lawmakers have agreed to put away $37.2 billion in reserves for the year beginning in July, with the purpose to soften any economical downturn that could result from the bear market.
Wrap Up
The stock market has been in a spiral for a few months now, and this economic shift has certainly taken a toll on the state’s income as a whole. As well as the state, it has also taken a large toll on millions of investors across the country. If you ever need assistance in investing your money in the right places, as well as the right time to invest. Call a trusted financial expert.