NCPA - National Center for Policy Analysis

New York Makes Progress In Reducing Tax Burden

March 16, 1999

The "tax gap" between New York and other states -- the extra cost of taxes in the Empire State compared to the average for all states -- has shrunk as a result of tax cuts in recent years, and will decline further due to additional tax cuts scheduled for coming years, says the Public Policy Institute of New York State.

And as it has in many years past, New York had the highest per capita state and local tax burden of any state in 1996, according to new Census Bureau data and the PPI's analysis.

  • The combined state and local tax burden on New Yorkers in 1996 was $3,987 per capita compared to a national average of $2,597, according to the Census data.
  • New York's "tax gap" of 53.5 percent above the national average in 1996 was down from 56.4 percent in 1995 and 60.5 percent in 1994.
  • The last time the state's tax differential was lower was in 1981-82.
  • And according to analysis by the PPI, as of 1999 the "tax gap" faced by New Yorkers has been cut further, to around 40 percent, a level last seen in the 1960s.

The lower tax burden includes some $6.8 billion in reductions to personal income taxes, business taxes and other taxes that have been reduced since 1996.

Using another measure of total tax burden, combined state and local taxes in New York were $144 for every $1,000 of personal income. That was 2nd-highest among the states -- next to Alaska -- and 27.4 percent above the national average.

Source: "Institute: State's 'Tax Gap' Is Lowest Since '82 -- And Will Shrink More," Wire, March 5, 1999, Public Policy Institute of New York State, Business Council of New York State, Inc., 152 Washington Avenue, Albany, N.Y. 12210, (518) 465-7511.


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