Assemblyman Joseph Angelino (R,C,I-Norwich) and his Assembly Minority Colleagues today unveiled legislation (A.8481) that would provide inflation relief to consumers throughout New York. With the state having an available budget surplus, the assemblyman is proposing to cut sales taxes on various daily consumer products for two years in order to combat the recent ballooning in inflation. The bill calls for $2.6 billion in tax relief each year over two years.

“I'm no economist, but you don't need to be one to see the drastic rise in everyday costs to New Yorkers. They are struggling with increased prices on gasoline, food and even household cleaning products. Inflation is actually like a tax and it has hit everyone’s wallet, and with New York State having an available budget surplus, steps should be taken to provide relief to residents,” said Angelino. “I am proud to introduce legislation which would cut sales tax on everyday goods for two years to provide some relief to counteract rampant inflation. It’s time for New York to take action where the federal government will not.”

Angelino’s legislation eliminates the state sales tax and compensating use tax on gasoline. It would also create exemptions on the sales and use tax for everyday products such as personal care items, housekeeping supplies and ready-to-eat foods at grocery stores and restaurants. Additionally, the bill allows the same action for local municipalities in providing relief to local consumers. Sales tax, being one of the most regressive taxes, would help significant numbers of middle- to low-income families if reduced.

Disruptions in the supply chain on nearly every product and trillions of federal dollars being pumped into the economy has fueled inflation to the point it is burdening consumers. Moody’s estimates, based on a survey conducted by the US Bureau of Labor Statistics and the Consumer Price Index, the average consumer saw monthly costs rise to $287 in 2021, while the monthly costs for families rose to $388.

“Because inflation rose so rapidly, sale tax revenues came in hand over fist, stuffing state coffers to an exceedingly-high and unnecessary level,” said Angelino. “Collected sales tax receipts through September 2021 was $13.4 billion more than 2020. Coupling this with more than $12 billion in federal funds handed down to New York, the state can afford to provide sales tax relief to its residents, and it should be made a priority.”