New York state’s tax system isn’t up to the task of raising the money needed to comply with a judge’s order to increase education spending in New York City, according to a new report from the Institute on Taxation and Economic Policy.
To pay for increasing the city’s school budget, the report from the Washington-based nonprofit research group says, the state would need to close loopholes on its income and corporate taxes, as well as subject a wider array of goods and services to sales taxes. A judge has ordered the state to provide an additional $5.4 billion a year to the city schools. That represents a 44 percent increase over current spending. The state plans to appeal the order.
Vol. 24, Issue 33, Page 12