New York keeps landing at the bottom of national tax rankings, and one state lawmaker says Albany isn’t taking the warning seriously .
A new report from the Tax Foundation again ranks New York last in the nation for overall tax competitiveness, marking the fifth straight year the state has held that spot . The index looks at corporate taxes, personal income taxes, sales and excise taxes, property and wealth taxes, and unemployment insurance taxes.
Sen. Tom O’Mara, a Republican, says those results should be “setting off alarms all over the Capitol,” but instead lawmakers are focusing on raising taxes and finding new revenue to cover growing state spending and future deficits .
He argues the state relies too heavily on short-term fixes that return limited money to taxpayers while continuing to take more out of their pockets. O’Mara says the real issue is the size and growth of state government spending, not a lack of revenue.
A push for tax cuts and spending caps
In response, Senate Republicans recently rolled out what they call the “Keep What You Have Earned” legislative package, part of a broader “Save New York” agenda for 2026 . The plan centers on cutting taxes, limiting state spending, and easing costs for homeowners and small businesses.
At the center of the proposal is the “Taxpayer Rescue Act,” which O’Mara is co-sponsoring. The bill would provide $37 billion in state income tax relief over ten years, which supporters describe as the largest middle-class tax cut in state history .
The proposal would eliminate state personal income tax on the first $50,000 of income for single filers and the first $100,000 for joint filers. Supporters say that change would directly address affordability pressures facing working families.
Property taxes and local government costs
The package also targets property taxes, which O’Mara calls a long-ignored burden on homeowners. One proposal would have the state take over the local share of Medicaid costs for ten years in communities already subject to the two-percent property tax cap .
O’Mara says that move could finally shift attention toward cutting property taxes, not just slowing their growth. He also argues it would force the state to confront waste, fraud, and abuse in government programs, an issue he says has received “little more than lip service” over the years.
The plan also calls for a three-year freeze on real property taxes to provide immediate relief to homeowners.
Small businesses and farms in focus
Another piece of the package aims to reduce taxes on small businesses and farms. O’Mara backs legislation to raise the corporate tax threshold and lower the tax rate, while expanding exemptions for small businesses and increasing them further for farmers .
Supporters say those changes would help local employers keep more money and stay competitive in a high-cost state.
Competing visions for New York
O’Mara sharply criticizes the state’s current leadership, saying they talk about an affordability crisis while continuing to approve billions in new spending without addressing how to pay for it . He argues that approach leaves taxpayers stuck with higher bills and fewer options.
He says restoring affordability requires cutting taxes, limiting spending growth, reducing regulations, and improving public safety, not expanding government costs.
As budget talks and legislative debates continue, the divide over how to fix New York’s affordability problem remains clear. One side sees higher taxes and new revenue as unavoidable. The other says taxpayers have reached their limit and want action, not talk.
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