New York has the second most progressive distribution of federal income taxes among the 50 states, according to a new analysis from the Tax Foundation.

From the Tax Foundation’s Fiscal Fact:

Taxpayers earning more than $200,000 earned 40 percent of [New York] state’s AGI but paid 63 percent of the state’s federal income taxes. Indeed, they paid three times as much in federal income taxes as every taxpayer earning under $100,000 paid combined.

Connecticut had the most progressive federal tax distribution, with filers in the above-$200,000 bracket paying 66 percent while earning 44 percent of adjuste dgross income (AGI).

The Tax Foundation analysis is based on IRS data for federal individual income taxes paid in 2008.  But New York State’s own personal income tax is similarly progressive, according to figures in the “Economic and Revenue Outlook” volume of the 2010-11 Executive Budget.

In 2007, the data show, New York taxpayers with AGI over $200,000 shouldered 63 percent of the state personal income tax liability while earning 49 percent of income (see the table on p. 192).

These high-income taxpayers have sustained large drops in their earnings over the past three years; nonetheless, as of 2010, the Executive Budget forecasts they will still pay 54 percent of the income tax while earning 35 percent of the total AGI.  The ratio of state income tax tax liability to share of AGI for filers earning more than $200,000 will rise from 1.29 in 2007 to 1.54 in 2010, presumably as a result of the sharp temporary rate increases imposed by the state in 2009.

In 2011, the budget also forecasts, the highest-earning one percent of all New York taxpayers will generate just over 41 percent of income tax liability.

You may also like

New York’s Proposed ‘MCO Tax’ Would Generate a Fraction of What Lawmakers Expected

The Hochul administration's proposed "MCO tax" would generate far less than the $4 billion in extra federal aid anticipated by state lawmakers when they approved the concept this spring, according to documents obtained by t Read More

Hochul Hides the Specifics of a Looming Tax on Health Insurance

The Hochul administration has requested federal approval for a multibillion-dollar "MCO tax" on health plans without announcing the move or providing details to the public. As by l Read More

New Yorkers’ Health Costs Spiral as Officials Take Credit for ‘Savings’

The latest round of health insurance premium hikes announced by New York regulators adds to evidence that state policies are drowning consumers instead of helping them. Late last mo Read More

Budget Deal Slows Medicaid Growth But Plants Seeds for Future Spending

The growth of New York's Medicaid spending is projected to slow but not stop as Governor Hochul and the Legislature effectively split their differences over health care in the newly enacted state budget. Read More

Albany Lawmakers Push a $4 Billion Tax on Health Insurance

Legislative leaders are proposing an additional $4 billion tax on health insurance plans in the upcoming state budget – but withholding specifics of how it would work. Read More

As migrants flow to NY, so does red ink 

The influx of foreign migrants to New York could cost the state $4.5 billion more than expected next year, Governor Hochul today warned.  Read More

The Bill Arrives: NY Faces $9B Budget Gap Next Year 

New York’s outyear budget gaps, the shortfall between planned state expenses and state tax receipts over the next three years, has exploded to more than $36 billion, just-released documents show.  Read More

NY school spending again led US, hitting all-time high in 2020-21

Public elementary and secondary school spending in New York rose to $26,571 per pupil in 2020-21, according to the latest Census Bureau data Read More