New York’s Tax Burden Trails Only New Jersey’s
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New Yorkers bear the second-highest tax burden in America, with the average resident paying more than $6,400 a year in total taxes, according to a new study from the Tax Foundation.
The study, which calculated each state’s combined state and local tax burden and accounted for taxes the average resident paid out-of-state, concluded that only New Jersey has a higher tax burden than New York. New Yorkers are currently forced to devote close to 12% of their yearly income to taxes, according to the study.
The data includes tax information up to June 30.
Things could get even worse for New Yorkers, as Governor Paterson announced last week that the state is struggling with a huge budget deficit that could prompt even more taxes. According to the study, the average New Yorker’s income is $55,032, and $6,410 of it is being spent on state and local taxes.
Democrats in the state Assembly are proposing additional taxes, such as a millionaire’s tax, to offset the budget deficit.
As a nation, Americans are using 9.7% of their income on state and local taxes in 2008, down from 9.9% a year ago. The drop is due to income levels rising faster than tax collections. Residents of Alaska are paying the least, using just 6.4% of their income on taxes.
Since the Tax Foundation began compiling data on state and local tax burdens, New York has finished either first or second in percentage of income spent on taxes.
