Tax & Budget

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|

November Cash Basis Report shows higher than expected Personal Income Tax receipts

The New York State Comptroller this week released its November 2022 cash basis report, which documents recent trends in state spending and revenue.

Fiscal Policy Institute2025-04-04T14:27:18-04:00December 19th, 2022|Financial Plans & Cash Reports|

Personal Income Tax Revenue Exceeds Projections in Mid-Year Financial Plan

In its Mid-Year Financial Plan Update, the New York State Division of the Budget (DOB) reported that tax revenues continue to exceed previous projections. Personal Income Tax (PIT) receipts continue to outperform expectations — bringing in $48.95 billion — nearly $2 billion more than projected in the enacted budget financial plan and $500 million more than projected in the first quarterly update to the financial plan. Through the first half of the fiscal year, PIT receipts exceeded enacted and first quarter projections by 17 percent and 8 percent, respectively.

Fiscal Policy Institute2025-01-17T16:06:16-05:00November 30th, 2022|Economic Outlook, Financial Plans & Cash Reports|

October Cash Basis Report shows higher than expected Personal Income Tax receipts

The New York State Comptroller this week released its October 2022 cash basis report, which documents recent trends in state spending and revenue.

Fiscal Policy Institute2025-04-04T14:27:19-04:00November 22nd, 2022|Financial Plans & Cash Reports, Press Releases|

Inequality in New York & Options for Progressive Tax Reform

A new report from the Institute on Taxation and Economic Policy (ITEP) finds that New York State is home to the highest concentration of extreme wealth in the United States. New York State also has the greatest income inequality in the United States. In order to understand inequality, we need to look at both income and wealth. By both of these measures, New York is the most unequal state in the nation.

Nathan Gusdorf, Andrew Perry2025-04-04T14:23:18-04:00November 9th, 2022|Must Read, Tax Policy|

FPI Testifies to NYS Senate on Fines and Fees

FPI's Chief Economist, Jonas Shaende, was invited to testify before the New York State Senate Standing Committee on Codes and the New York State Senate Standing Committee on Crime Victims, Crime, and Corrections. Dr. Shaende spoke in support of the proposed S.3979C (Salazar)/A.2348B (Niou), the End Predatory Court Fees Act. Testimony: Full Text

Jonas Shaende2024-12-18T12:24:17-05:00October 29th, 2021|City Budget, Testimony|

Local Governments Across New York State Must Re‐examine Fine and Fee Revenue

Many local governments across New York State ‐ particularly small town and village governments ‐ rely on fine and fee revenue as part of their annual budget, with more than 30 towns and villages having a reliance of ten percent or greater on this type of revenue. Much of it is generated through Justice Courts which have jurisdiction over vehicle and traffic violations, evictions, small claims, and certain criminal offenses. Click here to read the full report: Local Governments Across New York State Must Re‐examine [...]

Jonas Shaende2024-12-18T12:24:17-05:00August 31st, 2021|City Budget, Fact Sheets|