New York is one of the wealthiest places in the world, but it is also one of the most unequal. According to the Fiscal Policy Institute, New York has the highest concentration of extreme wealth in the country, defined as households with more than $30 million. Yet many average New Yorkers openly talk about leaving the state because it’s hard to make ends meet.
As county comptrollers across New York, we witness the financial pressures facing residents, local economies and county budgets that provide essential services. Between 2020 and 2024, county expenditures increased by 26.7%. Those increases reflect the rising cost of delivering services our communities depend on, from public health and human services to infrastructure and emergency response. If economic conditions weaken further, tax revenues will decline just as demand for public services increases. Counties are facing tough odds.
New York’s tax system makes this challenge even more difficult. Property taxes, sales taxes and other local taxes that counties rely on are regressive, meaning they take a larger share from low- and middle-income households than from those at the very top.
State and local policymakers are taking steps to soften the impacts of regressive taxes – including property tax exemptions for seniors and veterans, and sales tax exemptions on gasoline and clothing – but regressive taxes cannot generate the level of revenue that would come from a more progressive tax structure. The state income tax is designed to be more progressive, yet it still does not adequately reflect the extraordinary concentration of wealth in New York.
Counties are on the front lines, administering many state and federal programs under mandated requirements, and we depend heavily on state and federal funding to carry out the responsibilities assigned to us. We help deliver state benefits and administer programs such as Temporary Assistance for Needy Families with federal support.
Reductions in federal aid are increasing pressure on state and local governments. Recent changes to eligibility rules and administrative costs for SNAP and Medicaid will not only push some residents off these programs, but also bring additional costs to the counties that administer these programs.
We can see firsthand the difficult choice most counties may soon have to make: either increase regressive taxes on the folks who are already hurting most or cut other vital programs on which those same people depend.
This makes state funding even more critical. In a state with such extraordinary wealth, we have the capacity to build a fairer and more sustainable system. Asking the wealthiest New Yorkers to contribute more is a reasonable step toward stabilizing public finances and strengthening communities. Increasing income taxes on the highest earners – folks making millions and millions – is not only fairer for all New Yorkers, it’s fairer to county governments, who are bracing for lower revenues and higher costs.
We encourage state lawmakers to find common ground and negotiate reasonable thresholds for a more progressive tax structure: one that will not chase New Yorkers out of the state but will enable those with the most to pay their fair share and ensure that New York continues to lead the country in compassion and fairness.
