LIRPC’s Balance of Payments Study Shows Nassau and Suffolk Taxpayers Send More Money to State and Federal Governments than the Region Receives in Expenditures.
Nassau and Suffolk County taxpayers are sending far more money to Albany and Washington than gets returned to Long Island in the form of government spending – a combined deficit of more than $40 billion.
The Balance of Payments study, commissioned by the LIRPC and conducted by PFM Group Consulting updates a 2013 report performed by the Long Island Association with fiscal year 2022 figures and found that:
- Long Island sent an approximate $68 billion to the federal government in the form of personal income, business, employment, estate, excise and gift taxes, while federal expenditures (excluding COVID payments) in Nassau and Suffolk were $42 billion – a deficit of $26 billion;
- New York State received $24.6 billion in taxes and fees from Long Island while the region received $9.8 billion in expenditures – a deficit of $14.7 billion.
The report noted that several changes in New York tax code since the 2013 study have had a greater impact on wealthy counties such as Nassau and Suffolk than other areas of the state, and that while the 2017 Federal tax changes lowered many rates, the $10,000 cap on state and local deductions remains detrimental for high tax areas such as Long Island.
Other findings include:
- Compared to 2013, revenues coming from Long Island to Albany increased by 40%, however expenditures actually decreased by 10%;
- A $6.6 billion gap between revenues and New York State expenditures in 2013 more than doubled in 2022 – to $14.7 billion;
- Revenues from Long Island to the Federal government increased by 29% compared to 2013 while Federal expenditures (Excluding COVID relief) increased by 75%;
- Median household incomes in Nassau and Suffolk counties were 161% higher than the New York State media; and 171% higher than the nationwide median;
On the federal level, expenditures include direct payments to individuals (such as Social Security, unemployment, federal pensions), grants (including Medicaid and SNAP), contracts and purchasing, and wages of federal employees. On the state level, expenditures include payment to vendors, Medicaid, wages of state employees, unemployment benefits and STAR rebates.
