Post-Pandemic Unemployment Rates Improving
Last week, unemployment claims fell to a new post-pandemic low of 365,000. It’s good progress, but we haven’t yet reached pre-pandemic weekly claims numbers, which averaged around 220,000.
The increase in availability of the vaccine is one of several reasons for the improving unemployment rates. The impending end to federal supplemental unemployment benefits this September and the potential signing bonuses several states have promised for new hires are other considerable financial factors.
New Budget = New Tax Codes
The release of Biden’s Fiscal Year 2022 budget and the Treasury Department’s “Green Book” (which includes the government’s guidance on options appraisal and applies to all proposals that concern public spending, taxation, changes to regulations, and changes to the use of existing public assets and resources) have provided explanations of new tax code changes that US taxpayers can expect in the coming year.
Among the most notable changes are:
- Premium Tax Credit
- Earned Income Tax Credit
- Child and Dependent Care Tax Credit
- Child Tax Credit
Cuomo Tax Cuts For Middle-Class Homes
The New York Fiscal Year 2022 budget will continue the support for middle-class tax cuts enacted in 2016. The cuts are expected to save 4.8 million New Yorkers over $2.2 billion in 2021. Once fully phased in, the budget will provide a tax cut for middle-class New Yorkers of up to 20%, which will become New York’s lowest tax rate for the middle-class in over 70 years.
NYS will also enact a middle-class property tax credit for households earning under $250,000 and whose property taxes exceed a fixed percentage of their incomes. Generally speaking, most households earning up to $250,000 and paying over 6% of their income in property taxes—with some exceptions—will likely qualify towards the credit. The credit applies only to those who reside in their NYS house for more than half of the year (183 days).
Thoughts? Give us a call at 516-541-6549, visit our website for more news updates, and don’t forget—have a great week!