NEW YORK'S TAX HELL
April 16, 2008
New Yorkers are paying far more in federal and state taxes than most Americans, with planned increases in the works, says Diana Furchtgott-Roth, a senior fellow with the Hudson Institute.
- New York State comes in close to the bottom, 42 out of 50 states, in federal spending per dollar of taxes paid, receiving only 79 cents for each federal tax dollar.
- Last year New York households paid $29,900 in taxes, or 23 percent of income, $6,500 more on average in federal taxes than the typical American household.
- New Yorkers also paid far more in state and local income taxes: $17,000 on average for a New York household, $5,800 more than the national norm.
- New York households face an average income tax burden of almost $47,000, which is 37 percent of their income, $12,300 more than the average American household.
- This doesn't include Social Security taxes, which add another 12.4 percent up to a wage level of $102,000; Medicare taxes, which add another 2.9 percent; and real estate and sales taxes.
- In all, New York State paid $168.7 billion in federal taxes and received less, $144.8 billion in return, making taxes one of New York's main exports.
New Yorkers need to be active on the federal and state levels, working with their senators and representatives in Washington and Albany to improve their tax situation, say Furchtgott-Roth. Tax increases are planned for everyone, from financiers to smokers:
- Financial services companies would pay another $102 million.
- Cigarette taxes would go to $2.75 from $1.50 per pack, making New York the most expensive place in America to smoke.
- New Yorkers would pay more for health, since a new $70 million tax on health insurers would be passed to consumers.
Source: Diana Furchtgott-Roth, "Our Own Tax Hell," New York Sun, April 15, 2008.
Browse more articles on Tax and Spending Issues