NYC loses $56 billion a year to the Federal Government.
NYC sends $$117 billion in taxes to the Federal Government, yet the Federal Government only spends $61 billion a year in NYC. That difference, called the balance of payments deficit, is the single biggest fiscal problem facing our City and, as Comptroller, I will work every day to fix it.
NYC’s priorities are left unfulfilled because of a broken Federal tax system – a system that always takes more from high cost of living areas like ours and redirects those funds are lower cost of living areas in rural America. Why should NYC taxpayers be funding local priorities in rural states when we have so many needs here at home?
We need to support shifting taxes from the federal government to the local level and reduce the overall burden for New Yorkers. In doing so, we can both increase funding for local priorities and get our city out of the debt that’s eating away at our budget more and more every year. For example, the MTA has $40 billion in debt. Servicing that debt is putting pressure on the entire system and taking away nearly $2 billion a year in debt service that could be used for system upgrades. if we can get just half of the $56 billion we are owed, we can invest $28 billion a year into these critical needs and, over the next 10 years, we can pay off MTA debt ($40 billion), School Construction debt ($8 billion), NYCHHC debt ($5 billion) and make critical NYCHA repairs ($17 billion) and infrastructure investments on our roads and parks. And remember, we can do this without an effective tax increase against our own wealthy constituents or businesses. These New Yorkers are already paying enough in taxes; we are just foolishly allowing them to send those resources to the federal government, where we lose 20 cents on every dollar sent.
We have unfunded priorities Now it’s time for the unfairness to come to an end. Legislation or litigation, I don’t care which way my Comptroller’s office will have to go. Notably, the political Left has this issue wrong. Progressive and liberal support by Congressman and Senators for high federal taxes on “rich” people in their own districts is wrong, and support for those policies takes critical resources away from needy people in NYC and from local priorities, like the MTA, our schools and public housing. Tax locally and spend locally, that should be what our representatives in D.C. support – and I will make it my focus to raise public awareness of this problem and get voters engaged with their Congressman and Senators to vote in the best interest of the people they represent.