Purported tax-cutting is a shell game

Monday, June 5, 2006 9:26 AM EDT

Auburn officials may be touting their latest budget adjustments - which could bring the tax levy increase down to 5.86 percent from 9 percent - as a blessing, but on the same day the council whittled away at the city spending plan last week, a report came out to remind us all what a huge problem taxes are in our state.
The Public Policy Institute of the Business Council of New York State issued a report on local and state tax burdens across the United States. Guess what? New York leads the nation in taxes per person.

The council, analyzing Census Bureau data from 2004, found that New York and its municipalities take an average $5,260 from each resident each year. Not only was that total $339 more than the next highest taxed state, Connecticut, but it was also well above the $4,684 total reported for New York just two years earlier.

Now some observers were quick to downplay the report, saying that the actual tax burden for much of the state is lower because this report factored in commuter taxes in New York City. Those bills are mostly picked up by New Jersey and Connecticut residents.

Fair enough, but that still doesn't explain the huge increase. Remember, Gov. George Pataki has been bragging about his tax reduction efforts for years. This report makes it clear that much of the tax-cutting on the state level was nothing more than a tax shift. Sure, we'll cut you a break on your yearly income tax returns, but try not to notice when your town or city or school district pushes up their rates because the state is giving them less aid.

“To have this kind of increase, it's disgraceful,” said Sandy Parker, chief executive of the Rochester Business Alliance. “It certainly indicates we are spending way beyond our means. Until we start to control spending, we're going to continue to see an exodus of jobs and young people.”

It was unfortunate this report didn't come out in the beginning of the year, when state lawmakers were formulating the budget. Perhaps it would have shamed them into a little more fiscal restraint. Then again, it's an election year ... maybe not.

But maybe voters will see through all of the pork and gimmicks in this budget, digest this latest report on tax burden and decide to make a few more changes in Albany come this fall.

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