LIU: WHAT THE CLIFF COMPROMISE MEANS FOR NEW YORK CITY

City Comptroller John C. Liu offered the following statement on the Congressional agreement to avoid the so-called Fiscal Cliff and its effect on New York City taxpayers:

“We will have to wait and see how this agreement fits into the coming debt-ceiling negotiations but, like any compromise, the deal to avoid the so-called Fiscal Cliff has some bright spots and dark patches for New York City taxpayers.

“Thousands of struggling New Yorkers will not find their extended unemployment benefits abruptly and cruelly cut off.  And some 900,000 New Yorkers can breathe a sigh of relief now that the Alternative Minimum Tax has been permanently fixed.  

   

“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.

“Finally, 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.”

                          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.