Tax Freedom Day! Those words sound refreshing following the budget battle in Albany. This date reflects and puts into understandable terms for the public and policy makers the size and cost burden of government on taxpayers.
On April 12, taxpayers nationwide will have worked enough days in order to pay their tax obligations. It takes U.S. taxpayers an average of 102 days to pay the tax burden placed on them at the federal, state and local levels. New Yorkers will be celebrating even later, on April 24, the third latest Tax Freedom Day in the nation. New Yorkers are working a quarter of the year just to meet their tax obligations. The sad truth is that none of us are truly free from the ever-increasing presence of taxes.
Government has seen many highs and lows over the years in tax receipts, which is not only affected by tax rates but the health of the economy. In the early 90s, higher tax rates were approved by Congress, and with the employment and wage highs of the early 2000s tech economic boom, the U.S. Government saw record tax receipts that created a surplus. Around the same period in our own state, New York ramped up spending to unprecedented levels. New York became a spendthrift government that not only raised taxes, but also passed the buck to local governments leading to some of the highest property taxes in the nation.
In reaction to the tax surge and revenue surplus, President George W. Bush enacted a modest two percent tax decrease which helped to relieve the tax burden which was then extended by President Obama. Since 2007, a combination of lower tax rates and the recession has pushed Tax Freedom Day two weeks earlier. That being said, the average total of all taxes represent 27.7 percent of your income, and in total you will still be spending more on your taxes than all your groceries, clothing and shelter costs.
I’d like to see the Tax Freedom Day arrive earlier for every New York taxpayer. Here’s what I am fighting for in Albany to lessen your burden. I am going to hold Governor Cuomo accountable and encourage him to reform and remove the unfunded mandates that pass on costly state programs to local governments which drive up your property taxes, an absolute must before we talk about a property tax cap.
New York must take its spending seriously to reduce the income tax burden on hardworking residents. Albany must cap its spending so that we can avoid the problems we’ve faced over the last few years. New York spending can no longer outpace inflation, as it has caused yawning budget deficits. Luckily, in this year’s budget, we were able to close the $10 billion gap, but it should be the aspiration of our policy makers to pass a balanced and sensible budget.
Finally, we need to stop hindering economic progress. Taxes in New York have become such a burden on not only us but our small businesses and manufacturers as well. Income, sales and excise taxes are prevalent in our daily lives and consume most of our income. Albany’s mentality must change from how much can New York take to how much can New York forgo in order to give you relief?
As always, if you have any questions or comments about our local economy or any state issues, please don’t hesitate to contact me at either my Johnstown office at (518) 762-6486, or my Herkimer office at (315) 866-1632.