Texas

New York Tops Nation in Taxes and Spending as Hochul Seeks Reelection

1mo ago · 6:12

New York tops the nation in taxes and spending per capita — and a nonpartisan watchdog says the state would be saving billions if it spent like its neighbors. The numbers: A Citizens Budget Commission report, using 2024 U.S. Census Bureau data, found New York state and local governments collect $12,357 per capita in taxes — the highest in the nation, 22% above California ($10,000+) and well above Connecticut ($9,700), Massachusetts ($9,400), and New Jersey ($9,000). The national average is $7,200; Texas and Florida sit lowest at roughly $5,300-$5,600. Spending side: New York and California are the top two spenders per capita (~$17,400 and ~$17,364, respectively), compared to a $12,000 national average, $10,200 in Texas, and $8,861 in Florida. Corporate tax capture: New York collects about $18 per $1,000 of state GDP in corporate tax revenue, compared to $13 in California, an $8 national average, $5 in Florida, and $0 in Texas, which has no corporate income tax. The cost of high taxes: The report estimates New York would have saved $99 billion if it spent like New Jersey, or $143 billion if it spent like Texas. CBC argues raising already nation-leading taxes further would hurt — not help — New York's competitiveness, citing ongoing outmigration to lower-tax states like Florida and New Jersey. The political backdrop: The report lands as Gov. Kathy Hochul seeks reelection against Republican Bruce Blakeman, who's centered his campaign on the state's cost of living. Hochul has resisted broad-based tax increases but recently approved a new tax on second homes valued over $5 million in New York City. Where does your state rank on taxes and spending? Let us know in the comments. #NewYork #TaxPolicy #StateSpending #CenterSquare #TheStates