State Comptroller DiNapoli’s Analysis Finds NY Received $1.06 for Every Tax Dollar Sent to DC in FFY 2022, Third Consecutive Year of Positive Balance
Historic federal pandemic relief funds, though being spent down, continued to boost New York’s balance of payments with Washington, according to a report issued today by State Comptroller Thomas P. DiNapoli. In Federal Fiscal Year (FFY) 2022, New York state generated $361.8 billion in federal taxes and benefited from $383 billion in federal spending. For every tax dollar paid to Washington, the state received $1.06 in return – a favorable per capita balance of payments of $1,076. This is the third year in a row that New York has had a positive balance of payments, after a long history of sending more to Washington than it receives.
FFY 2022 showed the influence of emergency spending undertaken by the federal government’s response to the pandemic as 45 states, including New York, had a positive balance of payments. The five states that had a negative balance of payments were Massachusetts, New Jersey, Washington, New Hampshire, and California. In FFYs 2020 and 2021, all states had a positive balance of payments. New York ranked 39th in FFY 2022, as compared to 30th in FFY 2021, 40th in FFY 2020, and 49th in FFY 2019.
“The response to the dire economic conditions brought on by the pandemic boosted federal aid for New York and all other states,” DiNapoli said. “As this relief comes to an end, New York’s balance of payments with Washington may again turn negative as federal support returns to pre-pandemic levels. The federal budget is an effective way to produce more equitable outcomes for all Americans, and I hope this report contributes to a constructive dialogue towards that goal.”
Key findings in DiNapoli’s report:
- New York generated $18,388 per capita, ranking it third in per capita contribution to the federal treasury, which was 32.4% higher than the national average of $13,888.
- New York received $19,464 per capita, ranking it 11th in per capita federal spending, which was 9.3% higher than the national average of $17,804.
- New York’s share of federal spending (6.5%) was higher than its share of the nation’s population (5.9%) and below the state’s share of total taxes paid (7.8%).
- Federal expenditure areas where New York ranks high include Medicaid ($2,742 per capita, 4th), Supplemental Nutrition Assistance Program ($529 per capita, 7th), Rental Assistance and Public Housing ($271 per capita, 1st), and Transit ($154 per capita, 1st).
- Federal expenditure areas where New York ranks low include Federal Employees Wages and Salaries ($437 per capita, 42nd), Veterans Benefits ($415 per capita, 49th), Federal Employees Retirement ($201 per capita, 50th), and Highways ($94 per capita, 49th).
New York’s per capita tax contribution ranks highly in most categories, except for excise taxes, where New York ranks last. On a per capita basis, individual income taxes represent the largest portion of taxes paid at $11,095 – 41.6% higher than the national average of $7,834. New York ranked first on per capita corporate income taxes at $1,976, $701 higher than the national per capita level of $1,275.
DiNapoli’s report is the eighth issued by his office detailing the differences among the 50 states with respect to what they pay in federal taxes and how much they receive in federal spending. New York’s former U.S. Senator Daniel Patrick Moynihan pioneered the concept of this balance of payments report.
Report
New York’s Balance of Payments in the Federal Budget, Federal Fiscal Year 2022
Interactive Map with Balance of Payments Breakdown in the United States
