Recent data from a national study ranks New York State as number 1 for the highest state and local tax burden at a whopping 12.8%! With a national average of 9%, New York taxpayers pay a 3.8% premium over the national average for the privilege of residing in New York. It is no wonder why states with lower state and local tax burdens such as Tennessee (7.7%), Texas (7.9%), Louisiana (7.8%), Nevada (8.2%), and Alabama (8.2%) are seeing increases in population and substantial economic growth while the upstate economy continues to struggle and lose population.
Recent television advertisements state that “New York Is Open For Business”, but with tax rates that place us the worst of all the 50 states one has to wonder “do we deserve better”? On a positive note, we only have an upside to get out of the “taxation cellar”. The Council For Community & Economic Research ranks national cost of living data and the news is only marginally better as New York is ranked 46 out of 50. In a state where we experience the highest taxes of any other state in the nation, Albany needs to devise strategies to curb their spending habits and look for ways to reduce tax burdens for New York State residents. Why is this concept so hard for our state legislators to understand?