New Study Reveals Taxes, Expenses Are Crushing Central NY Residents

by Steve Yablonski | July 19, 2017 7:17 pm

SYRACUSE, NY – Families in Central New York have seen economic struggles, high poverty rates, and an exodus of residents. Shedding new light on the causes of these trends, Reclaim New York today (July 19) released a breakthrough study that takes a personal look at the financial challenges residents are facing.

Reclaim’s new Affordability Crisis Report covers Onondaga, Oswego, Madison, Cayuga, and Seneca counties. The analysis shows how taxes and basic expenses leave residents across nearly all income levels struggling to make ends meet, let alone save.

The report’s methodology goes down to the school district level to provide the most local, personal look at how taxes, and regulations affect the bottom lines of New York families.

You can see Oswego specifically here: https://www.reclaimnewyork.org/central-newyork-affordability/?mc_cid=e4ee9868c0&mc_eid=66c975ee1a

“Families across Central New York need more economic opportunity. But our report shows that what they’re actually getting is an affordability crisis driven by a long list of taxes and regulations. This is government driving the cost of living up, not down,” said Reclaim New York Executive Director Brandon Muir. “Working and middle-class families are hurting as Albany adds to the problem instead of offering relief. Economic policies that reward political insiders and pit regions against each other aren’t the answer, and leave families questioning whether they should stay.”

For the first time, Reclaim calculates the real “Wake-Up Cost” for Central New York residents by combining income, property, sales, and excise taxes with basic living expenses. Reclaim’s model analyzes multiple income levels along with a comprehensive set of primary data sources to show citizens exactly where their money is going, and why the region is still struggling.

“It’s awful to see people work so hard and yet keep so little after the taxes and expenses they must pay just because they live here,” said Reclaim’s Central New York Regional Director John Byrne. “Our report provides a stark picture of the personal impact of poor policies from Albany that are simply crushing people and businesses from Syracuse to Auburn to Oswego.”

New Yorkers pay nearly 200 different taxes, levied by more than 3,000 government entities. These factors drive some of the highest property taxes in the nation, the worst tax burden in the country, and second-highest cost of living.

“State lawmakers, and the Governor, may like to talk about an improving upstate economy, but the facts tell a different story,” said Muir. “The affordability crisis is bad already, and will get worse if citizens and public officials don’t work to relieve the pressure from the costly policies driving it.”

Muir added, “People continue to leave every county analyzed in our report. This is the devastating effect of the affordability crisis. That’s why Reclaim New York will engage residents across the region to help make the state more affordable for everyone.”

Key Findings of the Report Include:

Middle-class families in Onondaga County are left with little to nothing after paying just their “Wake Up Costs” of taxes and basic expenses. They can’t save.

In Syracuse, a family of four, making the area’s median income of $47,219 is left with only 2 percent of that, just $1,102. That is not enough to handle extra expenses like childcare, additional healthcare expenses, or simply a vacation.

Even a family making twice that, double the median income, $94,438, can’t outrun their massive tax burden. A whopping 32 percent of their income is consumed by taxes – leaving them with only 4 percent of their annual earnings.

Recent graduates face a tough road if they stay in the Salt City. At the national average starting salary of $48,707 for grads working in their focus area, and with no dependents, they have lighter expenses. Still, they see taxes and basic expenses chew up 88 percent of their income.

A family in the town of Onondaga, earning the local median income of $43,638 annually, is left with just $1,174 after taxes and expenses. That is less than 3 percent of their earnings they have left to face any additional expenses, or emergencies.

In the village of Camillus, a median income-earning family makes $70,245 per year. Even with a higher income than many surrounding areas, this family will end up with just 4 percent ($2,816) after taxes and essentials.

In Oswego County, a middle-class family in the city of Oswego, making the median income of $49,575 per year is left with nothing after paying for New York’s heavy tax burden. They will go into the red, and cannot afford to live in the area without cutting basics.

Even at $99,150, double the median income, a family of four in Oswego struggles to save. They’re left with just 5 percent after taxes and basics.

Why do young people struggle to make it here, or move back in with their parents?

Even though they have no dependents, at a national average starting salary of $48,707 for grads working in their field of study, they’ll be left with only 16 percent after “Wake Up Costs.”

A family in the town of Hannibal, earning the local median income of $49,205 annually, will go into the red after taxes and expenses by 1 percent. They must turn to credit cards or cut basics. They are financially unstable.

In Madison County, a median income-earning family in Oneida makes $47,351 per year. Taxes and basic expenses eat up the vast majority of that, leaving them with just $1,614. That’s simply not enough to handle additional expenses like child care, or an emergency, and forget a vacation.

In Hamilton, a middle-class family, making the median income of $65,815 will spend 98 percent of it on taxes and basics.

In the village of Chittenango, a family of four can’t build a future even when making twice the median income. They see a $128,196 income largely consumed by taxes and expenses, leaving them with just 7 percent.

In Cayuga County, in the city of Auburn, a family of four, making the median income, earns $47,219 per year. They have just 3.4 percent of that left after their “Wake Up Cost” eats up over 96 percent.

Taxes, and expenses scale up for a similar family that earns double the median income in Auburn. They lose 96 percent of their $94,438 income to these “Wake Up Costs.” They are still not financially stable, and able to reliably save for retirement or a college fund.

A family in Port Byron making the $45,917 median income goes into the red by $493 after taxes and basis. They must turn to credit cards, or cut basics to survive.

At double the median income in Locke, a family of four still struggles. They have to spend 94 percent of their $133,612 income just to live there, thanks to the high cost of basic expenses and taxes.

In Seneca County, a family of four earning the median income of $48,665 in Waterloo, has just $120 to their name after taxes and buying the basics. They have to cut back, or turn to credit cards, and are at risk if any emergency expenses come up.

A double median income-earning family in Ovid still struggles. They make $91,484, but are left with just 4 percent after their “Wake Up Cost.” Saving for a college fund, or retirement, will be difficult.

A family earning the median income in Seneca Falls will see all of their $48,665 salary consumed by their taxes and necessities. They will go into the red.

A recent graduate here, earning the national average starting salary, $48,707, for someone working in their area of study, has only 16 percent left after taxes and basics. They have no dependents, but still have too little to build a future.

Reclaim will host trainings in the region to help residents better understand the causes of the affordability crisis and potential solutions. This is Reclaim’s fifth regional report on New York’s affordability crisis, and first project focused on Central New York counties.

Find more in-depth information, and Reclaim New York’s full Affordability Crisis Report at ReclaimNewYork.org/Central-NewYork-Affordability.

Source URL: https://oswegocountytoday.com/news/oswego/new-study-reveals-taxes-expenses-are-crushing-central-ny-residents/

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