TAX REVOLUTION: Blakeman Proposes Wiping Out State Income Taxes for Millions of New Yorkers
New York Republican gubernatorial candidate Bruce Blakeman unveiled a sweeping tax proposal Tuesday that would eliminate New York state income taxes altogether for many lower- and middle-income residents while sharply reducing the bills of many others, as he makes affordability a centerpiece of his campaign against Gov. Kathy Hochul, the New York Post reports.
The Nassau County executive said that if elected in November, he would exempt the first $50,000 earned by individual filers and the first $100,000 earned by married couples from state income taxes. Under the proposal, households whose taxable income falls entirely within those thresholds would owe no state income tax.
Blakeman said the average married-couple income in 45 of New York’s 62 counties is below $100,000, meaning the plan could completely eliminate state income taxes for many households across much of upstate and rural New York.
“[Gov.] Kathy Hochul made New York the highest taxed state in the nation by taxing paychecks, electric bills and driving up every possible expense in your household. That ends when I am governor,” Blakeman said.
“I am proposing the largest middle-class income tax cut in New York state history to make New York affordable and put thousands of dollars back where it belongs — in your pocket.”
New York’s unusually heavy tax burden has prompted some critics to derisively dub it the “Vampire State,” a play on its traditional Empire State nickname.
An analysis released last week by the nonpartisan Citizens Budget Commission found that, when state and local taxes are combined, New York has the highest per-resident tax burden in the country. The group also found that New York collects more personal income tax per $1,000 of personal income than any other state.
According to the analysis cited in the report, New York’s personal income tax collections relative to income are 94% above the national average. They are also 13% higher than California’s, 23% above Massachusetts’ and 42% higher than Connecticut’s.
Under the existing system, an individual earning approximately $50,000 pays around $2,100 annually in New York state income taxes, while a married couple earning $100,000 pays approximately $4,200.
Under Blakeman’s proposal, both of those taxpayers would see their state income tax liability fall to zero.
The plan would move New York significantly closer, for many earners, to states such as Florida, Texas and Tennessee, which levy no state individual income tax.
New York currently employs a progressive income tax system in which rates rise as income increases. Rates begin at 4% for lower-income taxpayers and climb to 9.65% for individuals and families earning more than $5 million, while those earning more than $25 million face a 10.9% rate.
A married couple earning $250,000 currently faces a top marginal rate of 6% and pays approximately $13,000 in state income taxes. An individual earning $100,000 also reaches a 6% top marginal rate and pays roughly $5,000 annually.
Blakeman’s proposal would reduce the $250,000 couple’s state income tax bill to approximately $6,000, according to his campaign, while the individual earning $100,000 would see the bill fall to roughly $2,000.
His campaign also said taxpayers earning between $100,000 and $500,000 would see their tax rate reduced to 4%, compared with current rates ranging from 6% to 6.85%. A similar tax structure — exempting the first $50,000 for individuals and $100,000 for married couples and applying a 4% rate above those thresholds through specified income levels — was proposed earlier this year by New York Senate Republicans.
The Blakeman campaign did not immediately provide details about what tax rates would apply to New York’s highest-income residents under his proposal.
Blakeman’s office estimated that the overall package would reduce state tax collections by approximately $35 billion, raising the question of how Albany would replace such a large amount of revenue.
Blakeman, who is challenging Hochul in the November 3 gubernatorial election, said he expects stronger economic growth and reductions in what he considers wasteful government spending to make up for the lost revenue.
“My plan pays for itself by stopping the ‘Hochul Exodus’ of businesses and families to other states, keeping our tax base right here in New York,” he said.
The proposal recalls the successful 1994 gubernatorial campaign of George Pataki, the last Republican to serve as governor of New York. Pataki campaigned heavily on cutting income taxes, and tax reductions were enacted after he took office the following year.
Hochul’s campaign pushed back against Blakeman’s proposal and defended the governor’s record on taxes.
“While Governor Hochul fights tooth and nail for New Yorkers, cutting middle-class taxes to their lowest rate in 70 years, Bruce Blakeman did the opposite: he jacked up property taxes twice. New York families can’t afford a record like his, and are ready to reject his ‘MAGA all the way’ agenda in November,” said Hochul campaign spokesperson Ryan Radulovacki.
Florida Gov. Ron DeSantis has repeatedly contrasted his state’s tax and regulatory policies with those of New York, describing Florida as the “free state” and pointing to the movement of residents from New York to Florida.
“New York leads the nation in out-migration,” he said. “Florida is seeing people coming in droves. Why is that? When people look at a state like Florida, they know that their money is going to go further.”
Texas has also increasingly competed with New York for financial-sector jobs and now employs more people in financial services, despite New York’s longstanding position as the world’s leading financial center.
“Over the past decade, the state [Texas] has combined tax advantages, legal modernization, workforce growth, and aggressive economic development tools to attract headquarters, talent, and capital,” the Partnership for the City of New York said in a report released in February.
