NY’s Temporary Reprieve from Sending More Revenue to DC Than It Receives
New York State taxpayers have historically sent more in taxes to Washington than they received back in federal spending. However, this temporarily changed in federal fiscal year (FFY) 2020. Historic relief funds from the federal government, provided in response to the COVID-19 pandemic, boosted New York’s per capita balance of payments from Washington from second-to-last in FFY 2019 to 40th in FFY 2020 among states, according to a report released by New York State Comptroller Thomas P. DiNapoli.
New York received $146 billion, or $7,236 per capita, more in federal spending than residents paid in total taxes to the federal government in FFY 2020. For every tax dollar paid to Washington, New York received $1.59, an increase from 91 cents the prior year, but still below the national average of $1.92. DiNapoli noted that all states had a positive balance of payments for FFY 2020 due to the unprecedented influx of federal relief aid.
