NYC Comptroller: What the Fiscal Cliff Compromise Means for New York City
New York City Comptroller John Liu is saying New Yorkers will have to wait and see how the Congressional agreement to avoid the so-called Fiscal Cliff will affect taxpayers.
Liu said in a statement, that some bright spots of the deal include extending unemployment benefits. But he added there are some dark spots too.
“We must properly fund Social Security and unfortunately the 2% increase in the Social Security Payroll Tax will cost four million hard-working New Yorkers, on average, more than $800 out of pocket this year, taking more than $3 billion out of the City’s income stream" Liu said.
Liu broke down the increases by borough, saying workers in the Manhattan will see the largest increase.
Estimated Cost of 2% Increase in Social Security Payroll Tax
Borough # of Workers Affected Estimated Cost Average Increase
Bronx 630,000 $425 million $674
Brooklyn 1,135,000 $875 million $770
Manhattan 995,000 $1.12 billion $1,125
Queens 980,000 $800 million $816
Staten Island 230,000 $220 million $956
TOTAL 3,970,000 $3.44 billion $868
Source: Security Administration; Bureau of Labor Statistics; NYC Comptroller’s Office.
Liu also blamed congressional bickering for a failure by the House to quickly approve aid for Sandy victims. “Congress has taken steps to avoid the cliff, but millions still face a steep plunge because the House of Representatives failed to approve aid for those who lost their loved ones, homes, and possessions in Hurricane Sandy. Families hurt by Sandy have been left out in the cold by Congressional bickering.”
House Speaker John Boehner has scheduled a Friday vote on $9 billion in flood insurance for areas affected by the storm. The rest of the $60 billion package will be voted on Jan. 15.