Consumer spending is expected to drive the Long Island economy in 2016. Just watch your taxes.
According to Newsday Long Island’s economy is expected to grow another 1.5% to 2.2% in 2017. However, locals need to make sure they keep an eye on their tax bills and obligations as the economy continues to accelerate.
Trump, Retail & Equity Windfalls
In our last post we discussed Trump’s impact on taxes. Most expect Trump to at least be good for real estate. Some of the coming tax changes could be both good and bad for New Yorkers. A strong real estate market can mean more money in the economy, and rising property values. That can make many feel rich. That equity rich feeling often boosts consumer spending both just from the confidence it provides, and access to funds for spending. Newsday predicts new growth in consumer spending will drive the economy due to a strong job market, with barely any unemployment. New plans to ease borrowing could flood the economy with credit from mortgages to credit cards, and more.
However, while we’ll be encourage and pressured to spend more, it is important to watch savings, the future, and paying business, personal and property taxes too.
The truth is that very, very few Americans have much savings or are in anywhere near being prepared for retirement. The economy and finances change fast too. Be wary of taking on more debt which may not be sustainable if the job market changes, equity is vaporized, and taxes rocket upwards.
Getting Pro Help with Your Taxes
If Long Islanders aren’t watching and preparing they could be hit by a lot of taxes, which may derail their new found prosperity.
Look for experts to help with IRA planning, 1031 exchanges for real estate investments, accurately preparing income taxes for the maximum deductions, making estimated quarterly payments on-time, and challenging flawed property tax bills.
2017 is going to be a great year. Enjoy it! Just don’t be taken by surprise when it comes to your taxes.