Earlier this year, the Federal Reserve Bank of Boston calculated that New York has average spending needs and well-above-average taxation. The Fed concluded that state and local taxes in New York are the highest in the nation when measured against the state's ability to produce revenue — 34 percent above the national average. Maine, a small and mostly rural state, was second at 18 percent, and several large states more comparable to New York — Massachusetts, Michigan, Ohio and Pennsylvania — all had taxes significantly lower.
The future will not be much more affordable. Gov. Spitzer has promised more state aid to schools, which will push spending higher but not do anything to lower the tax burden on localities. All the talk about a Michigan-style tax revolution — raising some other tax, lowering the property tax, imposing state controls on spending — has gone away to be replaced by a convoluted system of rebates that require homeowners to apply and calculate and then cash checks for a few hundred dollars.Click here for the rest.
(Via the Business Council's Knickerbocker Blog)