Albany, NY — The tax hike necessary to finance a statewide single-payer health plan would be the largest in state history and have unpredictable and potentially harmful effects for the state’s entire economy, according to a new report from the Empire Center for Public Policy.

The report analyzes the tax consequences of New York Health Act, which would switch all state residents into a single state-operated and taxpayer-financed health plan.

Although the legislation lacks specifics on how much the proposed plan would cost or where the money would come from, it’s clear that that it would push New York’s already heavy tax burden to unprecedented heights.

Drawing on available cost estimates, the report finds that New York’s combined state-and-local tax collections, which are already the highest of any state, would almost double to more than $17,000 per capita, which is three times higher than the national average.

The top marginal income tax rate would jump to an estimated 36 percent, increasing the incentives for tax flight among higher-income income individuals and higher-wage businesses.

The paper also warns that health care funding would become more vulnerable to economic booms and busts, and that rising medical costs would create pressure for further tax hikes.

“The New York Health Act requires a tax hike massive enough to disrupt the state’s entire economy, yet the bill’s authors have provided none of the details necessary to fully analyze the impact,” said report author Bill Hammond, senior fellow for health policy at the Empire Center. “It should be unthinkable that lawmakers would enact single-payer without clearly stating what it would cost and where the money would come from.”

Read the full report here.

The Empire Center, based in Albany, is an independent, not-for-profit, non-partisan think tank dedicated to promoting policies that can make New York a better place to live, work and raise a family.

You may also like

Empire Center, Government Justice Center File Amicus Brief with SCOTUS in Student Debt Cancellation Case 

Albany, NY — The Empire Center and the Government Justice Center (GJC) filed an amicus brief yesterday with the Supreme Court of the United States (SCOTUS) in Biden v. Nebraska, a case that will determine whether President Biden’s Stu Read More

New School Pensions Top $90K Downstate, Over $74K Statewide 

The latest career retirees from school districts in Westchester County and on Long Island were eligible for pensions averaging more than $90,000. Read More

State Budget Proposal Doubles Down on Reckless Spending, Empire Center Says

After Governor Hochul’s budget unveiling this afternoon, Empire Center experts offered their reactions to the latest framework. Read More

Empire Center Experts React to the 2023 State of the State 

In response to Governor Hochul’s State of the State address and policy book, Empire Center experts issued the following reactions. Read More

Math Proficiency Plummets on Statewide Exams, Latest Data Show

The report, issued just as the new Legislature convenes, analyzes the results of the first full administration of these annual exams to be conducted since the onset of the pandemic.  Read More

Sen. Daphne Jordan to Join the Empire Center

Retiring New York State Senator Daphne Jordan will join the Empire Center as Director of Development in January of 2023. Read More

Empire Center Issues State Policy Guide 

The Empire Center for Public Policy has released a policy guide and briefing book focused on the most important issues confronting New York. Read More

Government EV Mandate Could Harm Middle- and Low-Income New Yorkers, New Report Shows

Albany, NY — An Albany mandate requiring 100 percent of new passenger car and truck sales be zero-emissions vehicles (ZEVs) by 2035 could be as improbable as it is harmful for middle- and low-income New Yorkers, a new Empire Center stud Read More

Empire Center Logo Enjoying our work? Sign up for email alerts on our latest news and research.
Together, we can make New York a better place to live and work!