Tuesday, December 10, 2024
Year : 2, Issue: 15
NCPR: Most things cost more money than they did five years ago. High inflation rates have made things like gas, groceries, and other household items more expensive.
The good news is that higher prices have brought in more sales tax revenue for New York State—$3 billion, to be exact. So, at a press conference in the Bronx on Monday, Governor Kathy Hochul said she wants to give that money back.
“This is a one-time, $3 billion surplus that I believe should be returned to 8.6 million households across New York later this year,” Hochul explained. Here’s how it would work: An individual making less than $150,000 a year would get a $300 check, and a family or household earning less than $300,000 would get $500 back. An estimated 163,000 people in the North Country would qualify for the money.
Hochul unveiled a few oversized checks on stage to emphasize her proposal. “It’s your money and it should be back in your pockets.”
The area hit hardest by inflation is New York City. According to the latest federal data, inflation is at 4% this year in the metro area compared to the national average of 2.6%. That’s much closer to what economists want long-term. Hochul’s proposal comes on the heels of Donald Trump’s reelection and a shift towards more kitchen-table economic policies.
At Monday’s press conference, Jennifer Jones Austin applauded the governor’s proposal. Jones Austin is the CEO of the Federation of Protestant Welfare Agencies. She said she hears from many New Yorkers who are on the verge of poverty.
“They’re one car problem, layoff, one emergency, one crisis away from being able to get by, let alone get ahead,” said Jones Austin.
Inflation has been easing up from a national high of more than 8% in 2022. According to a survey published Monday by the New York Federal Reserve, people are more optimistic about their finances than they’ve been since before the pandemic.
Still, everyone at Monday’s press conference emphasized the need to help New Yorkers now. Grace Bonilla is the president and CEO of United Way of New York City, which operates food pantries around the area.
It’s those working New Yorkers that this program is aimed at. But it’s unclear what kind of impact a $300 to $500 check would have. A study on the $1200 stimulus checks paid out during the pandemic found that most people either saved the money or used it to pay down debt.
The inflation refund proposal needs enough support from New York State lawmakers to make it into next year’s budget. Hochul said it’s one of many ideas she plans to introduce during her State of the State address next month.
