By Hank Russell
A recent report from the Citizens Budget Commission (CBC) shows what every New Yorker already knows: that the taxes are too high and the government spends too much.
According to the report, the state and its local governments are the highest-taxing in the United States. The total state and local taxes collected per capita is $12,000 a year — 71% more per person than the national average. In addition, New York far exceeds other blue states such as California by 22%, Connecticut by 26%, Massachusetts by 31% and New Jersey by 36%. These states’ tax rates per capita are $10,000 or lower. The CBC also found that the state’s collections per $1,000 of personal income were 46% higher than the national average.
New York also led the U.S. in personal and corporate taxes. Based on CBC data, the Empire State collected 94% more personal income taxes than the national average, 13% more than California, 23% more than Massachusetts and 42% more than Connecticut. It also collected the highest amount of corporate taxes per $1,000 of state gross domestic product in the nation — 43% more than California, 47% greater than New Jersey and 60% higher than Connecticut.
“Increasing its already-nation-leading taxes will not make New York more competitive,” said the report’s author, Chris Henrichson. “It may well do the opposite, making it less attractive to some by further driving up New York’s high cost of living and doing business.”
Spending is another problem that the state has. According to the CBC, New York is second when it comes to spending per capita, next to Alaska. The report also showed that New York spends 44% more than the national average, 23% more than Massachusetts, 40% more than New Jersey and 96% more than Florida.
The report also suggested that New York should follow the lead of other states when it comes to spending. According to the CBC:
- If New York spent like California, they would have saved $699 million
- If New York had the same spending habits as Massachusetts, they would have saved $64 billion
- If New York spent like New Jersey — whose spending is around the national average — they would have saved $99 billion
- If New York followed the lead of Florida — whose spending is far below the national average — they would have saved $170 billion, which is 63% of the Empire State’s FY 2027 enacted budget.
The organization recommended that the state improve the quality, consistency, and reliability of critical public services; prioritize policies and programs that enhance affordability and quality of life; and increase government efficiency so taxpayers receive stronger results for their money.
“New York does not need to become a low-tax or average-spending state to compete effectively,” Henrichson said. “But because it already ranks near the top for taxes and spending, the state should focus on improving the value taxpayers receive. That means holding the line on taxes where possible, reducing them where feasible, and ensuring public dollars produce stronger results.”