New York sends $40.9B more to the feds than it gets back

NEW YORK — State residents pay billions more in federal taxes than the state gets back from Washington, according to a new audit.

The gap between what New Yorkers send the government in taxes and what it receives back in federal services widened in the last three years, State Comptroller Thomas DiNapoli. said. The state received 84 cents for every dollar it sent in taxes to the government in 2016.

“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.”

New Yorkers paid almost $255 billion in taxes to the federal government in 2016. State residents are responsible for nearly 10 percent of all personal income taxes paid to Washington.

The state received 16 cents on the dollar contributed back as Social Security, Medicare, and Medicaid. Billions in Federal money also came to New York for transportation, education and veterans benefits programs.

The average return for other states is $1.18 on the dollar sent to Washington.

DiNapoli shared the news as President Donald Trump considers tax reform that could seriously hurt New York. The tax plan could raise taxes for more than 3 million residents by doing away with the deduction for state and local taxes.

“Federal decision makers should consider this imbalance as they debate proposed budget and policy changes that could significantly impact New York and other states,” Schnedierman said.