Standing at the edge of the “fiscal cliff”
A Weekly COLUMN from NY State Senator Tom O’Mara,
Sooner or later, tax-and-spend government can’t work. It’s not sustainable. It produces decline. It drives people and businesses away. It destroys local economies.
It’s more than troubling, then, that current Albany Democrats keep holding fast to their unprecedented commitment to taxing and spending. Remember that this year’s final state budget rang up at an astonishing $277 billion, which means that spending under all-Democrat control in this state since fiscal year 2018-2019 has increased by 65%, over $108 billion! That’s twice the rate of inflation and it shows no signs of stopping.
It can only lead to a downfall. According to a new report from the Citizens Budget Commission (CBC), a prominent, nonpartisan fiscal watchdog, that’s where New York State stands at the moment – at the edge of a fiscal cliff.
From the CBC: “(Our) annual update comparing state and local taxing and spending across the country, finds that New York State and its local governments were #1 in taxing and #2 in spending nationwide. The State collected more taxes per person than any other state in fiscal year 2024, eclipsing second-place California by 22 percent.” (You can find the full CBC report at: https://cbcny.org/newsroom/cbc-releases-top-charts-4-new-york-and-its-localities-are-1-taxing-2-spending)
In a headline, the New York Post summarized it this way: “NY has highest tax burden in the nation— but is 2nd biggest spender too: ‘Vampire state.’”
Vampire state. Number one in taxing. Number two in spending.
“Combined with New York’s high cost of living and uneven public services, these fiscal burdens weaken New York’s value proposition and its ability to attract and retain residents and businesses,” the CBC report concluded. New York State “should hold the line on—and preferably reduce—taxes, while improving service quality, affordability, and government efficiency.”
The report highlights that New York government:
- Collected the most taxes per capita in the nation—71 percent more than the national average;
- Collected the second most in taxes per $1,000 of personal income, 46 percent higher than the national average;
- Collected the most personal income tax per $1,000 of personal income among all states—94 percent more than the national average;
- Collected the most corporate taxes per $1,000 of state GDP in the nation; and
- Spent more per capita than all states except Alaska—44 percent more than the national average.
It’s just the latest warning that what’s been taking place in New York State under all-Democrat, one-party control can’t go on. And yet, New York’s all-Democrat leadership holds tight to raising taxes and pursuing any other taxpayer-shouldered source of revenue in order to desperately keep trying to afford new, ever-higher spending commitments.
In response, our Senate Republican Conference keeps offering a different voice – a different and now long-neglected approach to governing. Earlier this year, for example, we proposed a “Keep What You Have Earned” legislative strategy. It would deliver the largest-ever middle-class income tax cut and additional broad-based tax relief for all New Yorkers.
The plan was a cornerstone of our broader “Save New York” legislative agenda for 2026, a plan to improve affordability, enhance public safety, and build a stronger New York for today and future generations.
It’s a straightforward call for a new direction in this state: Cut taxes. Rein in spending. Stop making state and local taxpayers throughout New York foot the bill for an out-of-control state government. For far too long, New York has been recognized as one of the highest taxed states in America and New York’s taxpayers have had enough. They’re sick and tired of all talk, no action on affordability and they’re demanding common sense, fairness, and responsibility.
One of the key proposals of our plan, which I co-sponsor (S.9110), known as the “Taxpayer Rescue Act,” would provide $37 billion in state income tax relief to New Yorkers, the largest middle-class tax cut in New York State history. Over a 10-year period, the proposal would, among other actions, eliminate state personal income tax on the first $50,000 of income for single filers and the first $100,000 for joint filers.
Additionally, the “Keep What You Have Earned” package also calls for:
- establishing a permanent 2% cap on annual state spending growth;
- through legislation I sponsor (S.1487), reducing the amount small businesses and farms must pay in taxes by increasing the corporate tax threshold from $390,000 to $500,000 and lowering the rate to 2.5%, among other provisions;
- reducing the property tax burden on homeowners by providing for a ten-year state takeover of the local share of Medicaid for local governments subject to the two-percent property tax cap; and
- freezing real property taxes for three years to provide relief to New York homeowners.
The state takeover of the local share of Medicaid is a direction that I have long called for and supported. If taken seriously, it would focus New York government’s attention on at least two priorities that are simply being ignored: 1.) the overriding need for property tax cuts (not just slower rates of growth) for all local property taxpayers, and 2.) the fundamental need to root out abuse, fraud, and waste throughout government programs and services.
Albany’s current powers that be talk endlessly about New York State’s affordability crisis. Yet their actions show they have no interest in stopping out-of-control spending, eliminating taxes, lowering costs, or cutting burdensome regulations and mandates. Their vision for New York remains a vision built on irresponsibly spending billions upon billions of taxpayer dollars with no concern for the inevitable other side of the equation, which is how to pay for it.
We need to save New York by restoring the right priorities, rebuilding stronger and safer communities, and working toward a more responsible and sustainable future.
