Governor Kathy Hochul is up for re-election next year, and she’s prepared to throw state revenue at potential voters. New York is introducing the first “inflation refund check,” which will provide over 8.2 million state residents with a cash payout.
“Starting in October, over 8 million New Yorkers will get an inflation refund because it’s simple — this is your money and we’re putting it back in your pockets,” Hochul said in a statement. Hochul claims low and middle-income households will benefit from these checks, which she had already allotted in the state budget for FY 2026. Payouts will be $200 for single filers making up to $75,000 and up to $400 for joint filers making up to $150,00. This is reminiscent of the stimulus checks sent out during the coronavirus pandemic, although the threshold was not adjusted for inflation.
How did New York raise the state budget? By raising taxes on EVERYONE. The local sales tax went up again from 4.25% to 4.375% this March. The Metropolitan Commuter Transportation District (MCTD) payroll tax will rise this July, penalizing businesses for existing within the confines of the city. Merely driving in NYC is a costly process thanks to those in charge.
Personal income tax accounts for most of New York’s budget, which has increased in recent years and ranges from 4% to 10.9%. New Yorkers are also required to pay local income taxes in addition to the state tax. Suffolk County recently raised its local tax from 4.25% to 4.35%, so even if you are making minimum wage, you are expected to give 8.75% of your take-home pay to New York.
New York State’s FY 2025 budget anticipates a deficit of $13.9 billion, an improvement from last year’s forecast of $27.1 billion. Analysts predict that spending will continue to outpace revenue in the coming years, with the structural imbalance for FY 2028 at an optimistic $15.6 billion.
The state and local governments will continue to raise taxes and implement new ones. Politicians bank on the general population’s stupidity. They’ve increased the cost of living through taxation, but expect the people to believe that they’re concerned about inflation when their policies are inflationary. They’re telling the public that they’ve strategically set aside the money in the budget as if they have $2 billion to spend on this ridiculous program.
