State Comptroller Thomas DiNapoli said Friday that New York collected $68.5 billion in taxes in the first half of the fiscal year, $7.3 billion above plan. He pointed to especially strong personal income and business tax receipts. "Higher state tax collections, particularly personal income and business tax receipts, are partially a result of financial market growth," he said, adding, "However, consumer costs keep rising and many families are still struggling. While strong financial market growth bodes well for some, we must ensure the economy works for all New Yorkers."
DiNapoli noted that Street firms generated roughly $46 billion in profits in the first six months, far ahead of forecasts, putting them on track to top $90 billion for the year. That surge points to record bonuses ahead, which would in turn prop up personal-income tax receipts.
In New York City, the securities industry has a workforce exceeding 200,000 and produced nearly $8 billion in city tax revenue in the fiscal year that ended June 30, a 15.8% increase from a year earlier. Across New York City, total tax revenue increased by nearly 7% compared with the previous year.
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The bottom line: DiNapoli links stronger state receipts to market strength, and he expects record bonuses tied to Wall Street's banner year to further lift personal-income tax inflows. For your portfolio, that backdrop signals robust market activity is still doing the heavy lifting for New York's fiscal picture.
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