Sullivan affordability crisis

FRITZ MAYER
Posted 2/15/17

SULLIVAN COUNTY, NY — A new report from a group called Reclaim New York says that the state in general, and Sullivan County in particular, is suffering from an affordability crises which …

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Sullivan affordability crisis

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SULLIVAN COUNTY, NY — A new report from a group called Reclaim New York says that the state in general, and Sullivan County in particular, is suffering from an affordability crises which prevents state residents from being able to save.

The report says the state has the highest tax burden of any state in the country, and that has caused people to leave. The study (tinyurl.com/jl85bnx) says, “More than 1.8 million people have left since 2000 for states with friendlier economic climates and clearer visions for the future—more than any other state in the nation.

“This crisis means New Yorkers at nearly every income level can’t save. When the high cost of living means you struggle to save for your future, there’s no reason to stay, especially when it takes more than a decade for an average-earning family to amass just the down payment on a home. Given that the state hits homeowners with the highest effective property tax rate in the nation, at a total of $26 billion, it makes many consider leaving.”

The report highlights the tax burden and basic cost of living expenses of a couple of average area households to show how, for many people, saving for the future is an almost impossible task. In Monticello for instance, the medium annual income of a family of four with two dependents who rent their home is $30,556. The yearly expenses including the tax burden and basic living expenses are $32,707. That leaves the family in the hole for $2,151 every year.

The picture in other places detailed in the study is not much better. The study addressed the Village of Liberty. It says, “In the Village of Liberty, a family of four that rents and earns the median household income of $37,877 will lose almost all of their income to taxation and basic living expenses. That’s $8,005 (nearly 21%) in taxes and $29,446 (nearly 78%) in basic living expenses. That leaves them with $426 annually for savings, leisure, and emergencies.”

While Gov. Andrew Cuomo likes to say that the tax burden is the lowest it has been in decades, this study says it is still far too high in New York State, and the fault for that lies with elected officials.

Part of the conclusion of the report says, “Given the energy our state and local governments expend on erecting barriers to transparency, and protecting the status quo of high taxes, it is often hard for taxpayers to get a clear picture of the fiscal forces that impact their future.”

The report urges residents to become active in changing the status quo.

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