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April 8, 2004

Another study, another measure, same result: New York's tax burden is nation's highest

New York State continues to suffer from the highest state and local tax burden in the nation, according to a new report from the Tax Foundation. The new analysis echoes earlier research by The Business Council's research affiliate, The Public Policy Institute, and many others.

For the 14th consecutive year, New York's state and local tax burden, when measured as a percentage of income, stands at 12.9 percent-highest in the nation and "well above the national average of 10 percent," the report said.

The report, which measured state and local tax burdens in all 50 states, also found that when federal income taxes are added to the equation, the state's tax burden jumps to 32.5 percent of income, 17 percent higher than the national average of 27.8 percent of income.

Maine (12.3 percent), Ohio (11.3 percent), Hawaii (11.3 percent), and Rhode Island (11.5 percent) followed New York to round out the top five, the report said.

The report also found that New York's tax burden as a percent of income is 48 percent and 39 percent higher than the two largest states, Texas and California, respectively.

New York's closest neighbors and competitors also fared much better. New Jersey's tax burden is nearly 3 full points below New York's at 10.1 percent. Pennsylvania and Massachusetts both have a 9.4 percent burden, the report showed.

Alaska was the most tax-friendly state, with the average taxpayer giving only 6.3 percent of his total income to state and local taxes.

The new report is in line with other reports using other measures that consistently show that New York's tax burdens are among the nation's highest, that this has negative economic consequences, and that New Yorkers want lower taxes: