February 7, 2026
Different voices will offer different assessments of where New York State stands (and where we’re headed) at this point in time, but the Tax Foundation’s most recent “Tax Competitiveness Index” speaks volumes.
According to the Foundation’s latest analysis, New York State continues to rank dead last, worst in the nation, in their index that evaluates the tax climate in all 50 states in America in five major areas: corporate taxes; individual income taxes; sales and excise taxes; property and wealth taxes; and unemployment insurance taxes. For the fifth straight year, New York comes in at the bottom.
It should be setting off alarms all over the Capitol. Instead, New York’s all-Democrat leadership are clearly turning their focus towards raising taxes and pursuing any other taxpayer-shouldered source of revenue to close projected future deficits resulting from ongoing out-of-control state spending, as well as to try to keep affording new, ever-higher spending commitments. It is long past time that the state put an end to gimmicks that put some money back in taxpayers’ pockets and chart a course forward to not taking it out of their pockets in the first place.
Consequently, our Senate Republican Conference offered a different voice – and we believe a long-overdue voice – last week when we proposed a “Keep What You Have Earned” legislative package. If enacted, it would deliver the largest-ever middle-class income tax cut and additional broad-based tax relief for all New Yorkers.
The plan continues rolling out our broader “Save New York” legislative agenda for 2026, a plan to improve affordability, enhance public safety, and build a stronger New York for today and future generations.
It’s a straightforward call for a new direction in this state: It’s time to cut taxes. It’s time to stop making state and local taxpayers throughout New York foot the bill for an out-of-control state government. For far too long, New York has been recognized as one of the highest taxed states in America and New York’s taxpayers have had enough. They’re sick and tired of all talk, no action on affordability and they’re demanding common sense, fairness, and responsibility.
The key proposal of our plan is legislation I’m co-sponsoring (S.9110), known as the “Taxpayer Rescue Act,” that would provide $37 billion in state income tax relief to New Yorkers, the largest middle-class tax cut in New York State history. Over a 10-year period, the proposal would, among other actions, eliminate state personal income tax on the first $50,000 of income for single filers and the first $100,000 for joint filers.
Additionally, the “Keep What You Have Earned” package also calls for:
establishing a permanent 2% cap on annual state spending growth;
through legislation I sponsor (S.1487), reducing the amount small businesses and farms must pay in taxes by increasing the corporate tax threshold from $390,000 to $500,000 and lowering the rate to 2.5%. Expanding the small business exemption to all PIT businesses regardless of whether they have employees, increasing the threshold to $500,000, increasing the exemption to 15%, and increasing the exemption to 20% for farmers;
reducing the property tax burden on homeowners by providing for a ten-year state takeover of the local share of Medicaid for local governments subject to the two-percent property tax cap; and
freezing real property taxes for three years to provide relief to New York homeowners.
The state takeover of the local share of Medicaid is a direction that I have long called for and supported. If taken seriously, it would focus New York government’s attention on at least two priorities that have simply been ignored: 1.) the overriding need for property tax cuts (not just slower rates of growth, we need tax cuts) for all local property taxpayers, and 2.) the fundamental need to root out abuse, fraud, and waste throughout government programs and services.
That second point has been badly needed for as long as I’ve served in this Legislature, and as far back as I can remember. There have been some meaningful efforts, yet when all is said and done, it’s been given little more than lip service. It seems like the time has arrived for an all-out, no-holds-barred investigation.
Albany’s current powers that be talk about New York State’s affordability crisis and then follow up with actions that show they have no interest in reining in out-of-control spending, eliminating taxes, lowering costs, cutting burdensome regulations and mandates, or restoring public safety. Their vision for New York remains a vision built on irresponsibly spending billions upon billions of taxpayer dollars with no concern for the inevitable other side of the equation, which is how to pay for it.
We need to save New York by restoring the right priorities, rebuilding stronger and safer communities, and working toward a more responsible and sustainable future.
