Tax Policy

Latest Census Data Confirms New York Losing Residents to Neighboring States with Lower Housing Costs

New Census data revealed that New York State lost a net total of 244,100 people in 2022. The latest Census data, which details state-to-state migration patterns, confirms the Fiscal Policy Institute's prior findings: New Yorkers are primarily moving to neighboring states with a lower cost of living, and in particular, lower housing costs. Meanwhile, less than half of New Yorkers are leaving for low tax states. This data confirms State fiscal policy should focus on turning New York into a place where people can afford to live and raise families — from investing in universal childcare and high-quality public education to affordable housing and reliable public transit. Conversely, budget cuts or underfunding will only hinder New York's economic recovery. Increasingly unaffordable housing and childcare, combined with shrinking state services, will continue to drive both individuals and businesses out of our state.

Fiscal Policy Institute2024-12-19T09:19:59-05:00October 20th, 2023|Migration, Press Releases, Tax Policy|

FPI Statement in Response to State Spending Freeze Directive

In response to the State Division of the Budget directive to State agencies ordering a spending freeze at current levels next year, Fiscal Policy Institute Executive Director Nathan Gusdorf released the following statement.

Fiscal Policy Institute2024-12-26T16:50:41-05:00September 21st, 2023|Press Releases, State Budget, Tax Policy|

Exempting Suburbs from Payroll Mobility Tax Would Cost MTA $200 Million

As the legislature currently contemplates a Payroll Mobility Tax (PMT) increase from 0.34 percent to 0.5 percent to fund the MTA, the Fiscal Policy Institute today released a new report, Who Should Pay the Payroll Mobility Tax? The Case Against Excluding Suburban Counties.

Fiscal Policy Institute2024-12-23T10:41:50-05:00April 26th, 2023|State Budget, Tax Policy, Transit|

7 Fiscal Policy Recommendations as the Budget Approaches

With New York State’s fiscal year 2024 budget due April 1, 2024, the Governor and Legislature are nearing the end of negotiations on key policy priorities and the scale of new investments in public services. This brief provides an overview of FPI’s recommendations on major fiscal policy areas at issue in budget negotiations.

Info2024-12-18T12:24:14-05:00April 19th, 2023|State Budget, Tax Policy|

Overview of Fiscal Year 2024 Executive vs Legislative Budget Proposals

The fiscal year 2024 Executive Budget limits spending growth to 2.0 percent, with new spending concentrated in Medicaid and School Aid. In contrast, the Assembly proposes budget growth of 5.9 percent, reflecting additional investments in the MTA, SUNY and CUNY, and assistance for low-income renters, paid for through increased taxes on multimillionaires and corporations.

Fiscal Policy Institute2025-04-04T14:27:17-04:00March 29th, 2023|State Budget, Tax Policy|

The Cost of New Property Tax Breaks for Local Government

Tackling New York State’s housing crisis is a central priority of the fiscal year 2024 executive budget. The budget proposes a suite of policy responses designed to create 800,000 new housing units, especially in the New York metropolitan area. Many of these measures, including required changes to local land use policy, are appropriately ambitious, given the urgency of the state’s housing shortfall.

Andrew Perry2024-12-26T16:57:49-05:00March 29th, 2023|City Budget, State Budget, Tax Policy|

Revenue Analysis: One House Budget Tax Proposals

Following the release of the State Senate and Assembly Budget Proposals, the Fiscal Policy Institute today released annual revenue estimates for the Personal Income Tax, Corporate Tax, and Corporate Tax Surcharge proposals.

Fiscal Policy Institute2024-12-26T17:00:32-05:00March 16th, 2023|Press Releases, State Budget, Tax Policy|

Tax Policy Brief: Estimating Revenue from a More Progressive Income Tax

New York’s budget is largely funded through the state’s personal income tax (PIT). Between 2015 and 2020, state revenue from the personal income tax totaled between $47 billion and $55 billion annually. In 2021, the New York state legislature voted to create new PIT brackets for individuals earning over $1 million annually. This change created a more progressive state income tax system, so that those who earn more pay a larger share of their income in taxes.

2024-12-26T17:02:10-05:00March 10th, 2023|State Budget, Tax Policy|

Fact vs Fiction: The Truth About New York’s Corporate Tax

March 8, 2023 Most businesses do not pay the corporate tax. Only corporations pay the corporate tax, and approximately 95% of businesses are not corporations. [1] Most businesses are partnerships, LLCs, S-corporations, or sole proprietorships, none of which pay the corporate tax. The biggest corporations pay most of the tax. More than 80% of corporations in New York pay less than $1,000 in tax. [2] Around 75% of all New York corporate tax revenue comes from the 500 most [...]

Fiscal Policy Institute2024-12-19T09:20:00-05:00March 7th, 2023|Fact Sheets, Migration, Tax Policy|

FPI Annual Budget Briefing

FPI presented its annual briefing on the Executive Budget on Thursday, February 16.

Info2024-12-18T12:24:16-05:00February 10th, 2023|State Budget, Tax Policy|

Tax Policy Brief: Revenue Impact of Higher State Taxes on Capital Gains

In this brief we evaluate three options for increasing the New York State tax rate on long-term capital gains. The options assessed here include: (1) a low surtax rate of 1% and 2%, (2) moderate surtaxes of 2% and 4%, and (3) surtaxes of 7.5% and 15%, as proposed in bill S2162/A2576 sponsored by Senator Gustavo Rivera and Assembly Member Ron Kim.

Info2024-12-18T12:24:16-05:00February 6th, 2023|State Budget, Tax Policy|

FPI Statement on FY 2024 Executive Budget

FOR IMMEDIATE RELEASE: February 1, 2023 Media Contact: press@fiscalpolicy.org FPI Statement on FY 2024 Executive Budget "As we head into a possible recession, it is essential to invest in the public services that stabilize the quality of life and the cost of living for working New Yorkers" ALBANY, NY | February 1, 2023 — Fiscal Policy Institute Executive Director Nathan Gusdorf today issued the following statement: “While Governor Hochul’s budget recognizes the importance of [...]

Fiscal Policy Institute2024-12-19T09:20:00-05:00February 2nd, 2023|Press Releases, State Budget, Tax Policy|

Housing Costs, Not Taxes, Drive Migration out of New York

The typical family that moves out of New York State saves 15 times more from lower housing costs than they do from lower taxes. Of the top twenty largest county-to-county moves out of New York State, annual mortgage costs are on average $18,300, or 34 percent, lower outside New York.

Fiscal Policy Institute2025-04-04T14:27:18-04:00January 31st, 2023|Housing, Migration, Must Read, Tax Policy|

State Corporate Tax Cut Would Cost New York $1.2 Billion in Annual Revenue

If New York cuts its corporate tax rate this year, returning the rate to 6.5 percent, the impact on state revenue will be significant: The state will lose $1.2 billion in fiscal year 2025. Revenue losses will begin in the last quarter of fiscal year 2024, costing the state nearly $300 million for that quarter.

Fiscal Policy Institute2025-04-15T03:06:18-04:00January 30th, 2023|State Budget, Tax Policy|

Fiscal Policy Institute on State of the State

In response to Governor Kathy Hochul’s 2023 State of the State, Fiscal Policy Institute Executive Director Nathan Gusdorf today issued the following statement: “In her State of the State, Governor Kathy Hochul laid out a wide-ranging agenda that identified many of the crises facing New Yorkers — but was silent on the need for new revenue. The Governor cannot deliver on an agenda to expand affordable housing and healthcare, strengthen our schools, and transition our state to a green economy without new funding. There is no credible vision to rebuild New York after Covid without new revenue."

Fiscal Policy Institute2024-12-18T12:24:16-05:00January 10th, 2023|Press Releases, State Budget, Tax Policy|