The Tax Bite

This is an interesting calculation.

Taxes take a bigger bite out of the Big Apple than any other urban area in the nation, according to an analysis released Wednesday.

The Independent Budget Office report said local government taxes absorb $9.02 of every $100 of taxable resources here. The rate is 47 percent more than the $6.16 average for the most populous U.S. cities.

"No other large city comes close," the report said.

After New York, Philadelphia rated next highest, with $7.16 per $100, and Los Angeles followed with $6.88. Of the nine cities, Dallas had the lowest rate, with $5.20 per $100.

To reach those numbers, analysts estimated each city's gross taxable resources, made up of city household incomes and business surpluses , in other words, the main spending power used to pay taxes. For New York, that number is $502.1 billion. The portion of tax capacity being used by government was calculated using direct municipal taxes, estimated state collections within a city, and any overlapping local governments like counties.

We're from the government, and here to help. Posted by AlexC at February 21, 2007 8:44 PM