Tax Revolt Brews

For those of us who have been watching for a tax revolt in New York City and in the state, it has been a heady few weeks. First Governor Paterson endorsed a cap on property tax increases. Senate Majority Leader Bruno said he wants even steeper tax cuts. Now a series of polls have come out reinforcing the idea that New Yorkers are starting to get angry about the state and local tax burden here, which is among the highest in the nation.

First came a statewide New York Times poll that asked on what voters wanted Governor Paterson to concentrate the most. Taxes ranked first, with more support from respondents than education, crime, gay marriage, housing, or health care.

Then came a Siena Research Institute Poll that found 74% of voters statewide supported a property tax cap. Then came a Times poll of New York City residents. Of 21 things about Mayor Bloomberg, from the smoking ban to crane collapses to congestion pricing, the thing that won the top vote for the worst thing the mayor has done was taxes. Presumably, voters were objecting not to his property tax rebate but to his increases in taxes on sales, income, and property.

All told, it amounts to remarkably fertile ground for a politician — or party — wanting to make tax cuts a campaign issue. Such cuts, correctly crafted, would encourage economic growth, impose some spending discipline on bloated state and local governments, and allow ordinary New Yorkers to enjoy some of the tax relief that politicians have been doling out as special tax-break favors to special interests such as filmmakers, baseball team owners, and investment bankers. And correctly crafted, tax cuts can also set the stage for increased tax revenues.

What is coming into focus is the fact that New York politicians can't claim anymore that New Yorkers are so rich that taxes don't really bother them or that taxpayers are all so happy with the services provided by the city and state governments that they are only too glad to pay the bills. This is an opportunity for political entrepreneurs and will be an issue to watch in the 2009 mayoral race and in the 2010 gubernatorial race.