City may lose $6B in taxes

The city is poised to take a whopping $4.8 billion to $6 billion loss in tax revenue due to the coronavirus, Comptroller Scott Stringer said Monday.

He was revising an earlier estimate, which placed the expected loss around $3.2 billion, due to the severity of the crisis, which has ground life to a halt in the Big Apple.

“The COVID-19 pandemic is already putting an enormous financial strain on our city’s workers as millions of New Yorkers grapple with the uncertainty of their next paycheck, paying rent, and taking care of their families,” Stringer said in a statement. “At the same time, the massive slowdown of our city’s economy is going to result in substantial losses of the tax revenue that keep this city running.”

The comptroller outlined two scenarios for the unfolding of the virus.

In the more “moderate” one, in which containment measures are successful and the economy comes back to life by the end of May, Stringer foresees a $1.28 billion loss in tax revenue for the current fiscal year and $3.5 billion in fiscal year 2021, totaling $4.8 billion. Those figures mark tax revenue declines of 2% and 5.4% for the current and next fiscal years.

In the more “severe” scenario, in which the state of emergency lasts until at least June or July, the figures go up to $6 billion over the next two years, with the city taking a 7% decline in tax revenue in the fiscal year 2021.

Stringer called for austerity as the city readies to pass its next budget.

He wants 4% cuts in most city agencies’ budgets, with exceptions for ones on the front lines of the coronavirus response.

Stringer also called for measures like stimulus funding from Washington, increased unemployment insurance and unlimited paid sick leave.