A new annual report from government watchdog Citizens Budget Commission finds New York state and its localities are number one in taxing and number two in spending.
“The debate about raising taxes should start about the facts where we are,” said Andrew S. Rein, president of the Citizens Budget Commission.
According to the report, New York collected just over $12,000 per person in “state and local taxes” for the 2024 fiscal year. The national average is between $6,000-$8,000.
The report also found New York is number two for the highest government spending between $16,000 to $18,000 per person. This includes on education, social services, police, fire, sanitation and parks. The national average is around $12,000.
Rein says numbers like these could make the state a less attractive place to live and do business, and may make state lawmakers reconsider when calling for higher taxes.
“The facts are that New York state and its localities already collect the most taxes in the nation,” said Rein. “Seventy-one percent more than the national average, and 22% more than second-place California.”
Affordability is a major talking point for both state Democrats and Republicans.
Earlier this year, at the start of the previous session, state Senate Republicans rolled out an affordability agenda called Save New York, which included a call to “cut personal income tax and impose a three-year property tax freeze.”
Republican state Sen. Bill Weber is the ranking member of his chamber’s Budget and Revenue Committee.
“It’s a continual problem for us in this state,” said Weber. “It’s shown by the outmigration in New York state by residents moving to lower taxed states. We have a spending problem in this state. The most recent budget we passed was $278 billion which… is one of the highest spending states in all of the United States.”
Some lawmakers in support of raising taxes say the rich aren’t feeling the impact the same way the middle class is.
Despite Gov. Kathy Hochul maintaining she doesn’t want to raise taxes aside from the pied-à-terre tax on second luxury homes, Democratic state Sen. Jabari Brisport, chair of the Committee on Children and Families in the state Senate, says there are “a lot more legislators coming (into the state Legislature next year) that are very pro-raising taxes on the wealthy to fund the rest” of the state.
“We are currently one of the highest taxed states in the nation, and we have not seen the flight of billionaires and multimillionaires,” said Brisport. “The people who are leaving continue to be the middle class. So, raising taxes on the wealthy to increase affordability for the middle class is a great way to keep New Yorkers here.”
Citizens Budget Commission says lawmakers need to consider the value the state is receiving for the services it’s spending on and manage and make sure New York is delivering results.