Assemblyman David G. McDonough (R, C, I – Merrick) joined members of the Assembly Minority Conference today at a press conference in Albany to bring attention to New York State’s Tax Freedom Day. As the 125th day of the year, this day marks the time by which the average taxpayer will have to have worked in order to pay for his or her combined federal, state and local taxes.

“There is no question that the tax system in our state is broken. There is very little accountability on how taxpayers’ hard-earned money is spent, especially in regards to programs like Medicaid. However, by combating the $4-5 billion annual Medicaid fraud costs, I am hopeful that we can start to put some of those savings directly into the pockets of the already overburdened taxpayer,” said McDonough.

New York State ranks third in the nation for highest taxes, forcing taxpayers to work an average of 125 days in order to pay taxes. That’s 125 days’ worth of the entire income earned by an individual taxpayer. Only New Jersey and Connecticut have highest taxes at 127 and 128 days of income, respectively.

According to Scott Hodge, President of the Tax Foundation, Americans spend more on taxes than on food, clothing and housing combined. The average American needs 35 days of income for food costs, 13 days for clothing and 60 days for housing.

The bulk of the taxes that force New York State’s ranking so high are the federal and state income taxes, although other taxes contribute. To combat this problem, McDonough is calling on the state to enact legislation that would cut state spending and deliver much-needed tax relief, including:

• Assembly Bill A.8775-A (Fitzpatrick): the “New York State Property Taxpayers Protection Act.” This initiative would control the growth of school property tax levies by capping them at four percent or the rate of inflation – whichever is lower;
• Assembly Bill A.4797-A (Errigo): Enhanced Child Care Credit. This initiative would help families by increasing the state income limit from $50,000 to $60,000, for taxpayers who claim 100 percent on their Federal Child and Dependent Care Credit;
• Assembly Bill A.7048-A (Finch): Dependent Credit and Personal Exemption. This initiative would increase the Dependent Credit from $1,000 to $2,000 and create a new personal exemption of $1,000;
• Assembly Bill A.10818 (Walker): Enacts a “Summertime Holiday” from state gas taxes. This initiative would suspend the state’s three separate taxes on a gallon of gasoline and diesel fuel to provide motorists a nearly 33-cents per gallon savings on gasoline and a 31-cent per gallon savings on diesel fuel from Memorial Day to Labor Day, 2008.

In addition to already paying some of the highest income taxes in the nation, New Yorkers may soon be burdened with even the highest federal taxes as the rate on the federal income tax is expected to rise in 2011.