New York’s economy would be hit especially hard by Washington’s potential “Taxmageddon” — the scheduled end-of-year expiration of the Bush income tax cuts and of a temporary “patch” that prevents the Alternative Minimum Tax (AMT) from hitting more middle-class taxpayers, according to a just-posted analysis from the Tax Foundation.
A one-year extension of current federal tax provisions, as proposed by Republicans in the House of Representatives, would save New Yorkers nearly $51 billion next year — more than residents of any state except California, the Tax Foundation estimated. The impact of the one-year extender would equate to 8 percent of personal income in New York, which would be more than any other state and triple the national average impact.
Most of the potential — $31 billion, or $2,100 per taxpayer in the case of New York — would be generated by another patch on the AMT, which has its greatest impact in New York and other high-income, high-tax states.
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