Um, that's not a cure for inflation.
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As her first proposal for the 2025 State of the State, Governor Kathy Hochul today proposed New York State’s first-ever Inflation Refund, which would deliver about $3 billion in direct payments to around 8.6 million New York taxpayers statewide in 2025. This new refund would send a payment of $300 to single taxpayers who make up to $150,000 per year, and a payment of $500 for joint tax filers making up to $300,000 per year. Today’s announcement is one of several proposals to help address the cost of living that will be unveiled as part of the Governor’s upcoming State of the State.
“Because of inflation, New York has generated unprecedented revenues through the sales tax — now, we're returning that cash back to middle class families,” Governor Hochul said. “My agenda for the coming year will be laser-focused on putting money back in your pockets, and that starts with proposing Inflation Refund checks of up to $500 to help millions of hard-working New Yorkers. It's simple: the cost of living is still too damn high, and New Yorkers deserve a break.”
Returning tax funds, I suppose, is laudable. I'm too lazy to look into New York's budget. Is the state solvent?
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Irresponsible when you’re running a $9B deficit.
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Deja vu of 4-5 years ago when every US person got a couple of checks worth thousands of dollars. But of course, that did not cause inflation that we saw 18 months later.
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“I am fond of pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.” ~Winston S. Churchill
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@Axtremus said in Um, that's not a cure for inflation.:
Um, that's not a cure for inflation.
Neither is tariffs or lowering interest rates or increasing Social Security payouts.
Actually, Tarrifs are… and increasing Social Security payments is required by law to match inflation.
Me/rry/Christmas
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@LuFins-Dad said in Um, that's not a cure for inflation.:
@Axtremus said in Um, that's not a cure for inflation.:
Um, that's not a cure for inflation.
Neither is tariffs or lowering interest rates or increasing Social Security payouts.
Actually, Tarrifs are…
Tariffs are ... what?
... and increasing Social Security payments is required by law to match inflation.
You have any problem with Social Security increasing benefit payments when inflation is high? You have any problem with New York increasing benefit payments when inflation is high?
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Our company gave us an extra pay-raise and one-time payment to help with inflation a couple of years back. I was tempted to write a strongly worded email protesting this economically reprehensible approach to fiscal responsibility to my CEO, but instead decided that selflessly taking the extra money was the right thing to do for the benefit of the rest of the work-force.
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@Axtremus said in Um, that's not a cure for inflation.:
@LuFins-Dad said in Um, that's not a cure for inflation.:
@Axtremus said in Um, that's not a cure for inflation.:
Um, that's not a cure for inflation.
Neither is tariffs or lowering interest rates or increasing Social Security payouts.
Actually, Tarrifs are…
Tariffs are ... what?
A cure for inflation. The best cure for inflation is getting cash out of the M2. Tariff’s can do that. Another cure for inflation is to reduce consumption and demand. Tariffs can help with that. And one of the biggest ways combat the negative effects of inflation is by improving local business and manufacturing wages. Tariffs on imports does that.
As for the NY thing, they aren’t increasing benefits, they are proposing creating one whole cloth. That adds $3B into the M2 when you’re supposed to be cutting money in the M2.
It also punishes married couples, did anyone else notice that?
Me/rry/Christmas
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@LuFins-Dad I dont know enough about their proposal, but where is the money coming from?
With the national government, I can udnerstand how the money supply increased. I think that they just printed more money. But I dont think that the state can do the same thing, correct?
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@taiwan_girl said in Um, that's not a cure for inflation.:
@LuFins-Dad I dont know enough about their proposal, but where is the money coming from?
With the national government, I can udnerstand how the money supply increased. I think that they just printed more money. But I dont think that the state can do the same thing, correct?
The money is coming from their collected sales tax, which has increased as prices increased. If they used the funds to pay down some of their debt, the money would still be in the M2 but not the M1. By putting it directly into the hands of people, it goes directly back into the M1. Short term gain for the individuals, but causes long term inflationary damage.
Me/rry/Christmas
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@LuFins-Dad Thanks!!! Makes sense.
