According to New York State’s Comptroller Tom DiNapoli, New York has raked in roughly $2.5 billion in tax revenue during the first 6 months of the fiscal year. This is a much higher number than the state previously forecasted. New York State is keeping a close eye on revenue from personal income taxes as a signal concerning the economy’s health, as well as inflation that continues to affect every American.
Statement from Tom DiNapoli
New York Comptroller Tom DiNapoli said that these higher-than-anticipated numbers aren’t necessarily good news. “Tax collections continued to run ahead of projections through September, however, there are economic uncertainties and risks that may impact revenue in the months ahead. Bolstering rainy day reserve funds on or ahead of the schedule proposed in the Enacted Budget Financial Plan should be a priority.”
New York’s Tax Revenue
As of now, The Empire State has collected roughly $33 billion between April and September. This is approximately $2.5 billion higher than New York originally projected. Taxation is the highest source of income for New York State, and according to the office of Tom DiNapoli, New York’s tax revenue reached $58.4 billion collectively last fiscal year.
As a recession looms and concerns remain, any lower number in tax revenue could have a detrimental effect on the budget of New York, which heavily relies on tax revenue to support many important things such as healthcare and education.
Governor’s Plan
Governor Kathy Hochul wants increased efforts in the attempt to protect the state’s budget from the potentially disastrous effects of an economic recession. A huge part of these efforts is putting more money into the rainy day fund to offset any loss of state tax revenue.
Wrap Up
When all said and done, the amount of reliance New York puts on Tax revenue is quite astonishing. It is also no secret that the economy isn’t in pristine condition. While it isn’t a certainty, the state of the economy could cause New York to make budget cuts in areas of great importance.