NEW YORK SENDS MANY MORE TAX DOLLARS TO FEDERAL GOVERNMENT THAN IT GETS BACK
“New York sent an estimated $40.9 billion more in tax payments to Washington in 2016 than it received back in federal spending,” DiNapoli said. “While the Empire State fares well in some areas, in total it receives significantly less per tax dollar than the vast majority of states. Federal decision makers should consider this imbalance as they debate proposed budget and policy changes that could significantly impact New York and other states.”
Today’s report, a follow-up to one DiNapoli released in 2015, shows federal spending in New York during federal fiscal year 2016 included $55 billion in Social Security payments, $47 billion for Medicare and more than $46 billion for Medicaid and other safety net grants. Billions of federal dollars also supported transportation, education and veterans benefits programs. Meanwhile, New Yorkers paid almost $255 billion in taxes to the federal government. While New York received 16 cents less per dollar contributed, most states received more than they paid. The average return for all states was $1.18 cents per tax dollar sent to Washington.
In federal fiscal year (FFY) 2013, New York generated $19.9 billion more in federal taxes than it received back in federal spending, according to DiNapoli’s 2015 analysis. Since then, the gap between taxes paid and spending received in New York has doubled to $40.9 billion.