New York Assembly by Matt Wade is licensed under CC 3.0
March 31, 2026
To: Members of the New York State Legislature
From: Americans for Tax Reform
Re: 2026 State Budget
Dear Senators and Members of the Assembly,
On behalf of Americans for Tax Reform (ATR) and our supporters across New York State, I urge you to protect taxpayers, families, and businesses by opposing any and all tax increase proposals, and by avoiding significant spending increases.
This budget process has presented a rare opportunity to improve New York’s high cost of living and curb the state’s out-of-control lawsuit burdens by supporting auto insurance reforms proposed in the executive budget.
New York’s auto insurance costs rank as the most expensive in the U.S., averaging over $4,000 annually. This adds to the crushing affordability crisis that makes it difficult for New Yorkers to make ends meet.
Gov. Hochul’s proposals to address rampant fraud, including combating phony medical fraud and accident fraud, are efforts legislators from both parties can get behind. Excessive lawsuit costs have been a problem in states controlled by Democrats and Republicans, many states are making progress by implementing similar reforms to the Governor’s proposals and insurance costs are coming down.
Take this bipartisan opportunity to ease the burden on New Yorkers and support the Governor’s auto insurance fraud reforms.
Unfortunately, the state budget would increase overall spending yet again, and a slew of tax hikes have been proposed.
It is time to say no to more tax hikes on New Yorkers. City residents already pay the highest combined income tax rate in the nation. Businesses are struggling under one of the worst regulatory environments in the country and some of the highest taxes as well.
We urge you to reject any tax hikes, which include a variety of misguided and punitive proposals:
- One-Time Income Tax Surcharge (SB9009)
- Corporate Franchise Tax (SB9009-A)
- Gold Bullion Tax (SB7875)
- NYC Mansion Tax Increase (SB8300-B)
- Nicotine Pouch Tax (S8080)
- Crypto Mining Tax (A8800-B)
- Helicopter Tax (S1140-A)
- Yacht Tax (S3874)
These proposed taxes will continue to push investors and business out of New York State, which has already been facing an exodus.
To avoid fueling further reckless spending and future budget disaster, reject undoing Tier 6 pension reform. Without this crucial reform, state spending on public pensions will exponentially increase over the proceeding years, eventually reaching a total estimated cost of $100 billion.
Past Tier 6 reform serves as a long-term guardrail against runaway spending. It is crucial that this reform is maintained in New York State’s upcoming budget.
In 2000, New York State’s public pension system cost taxpayers $1 billion. In 2010, it jumped to $10 billion.
Tier 6 pension reform was passed in 2012 to put this runway spending in check, by requiring public employees to pay up to 6% of their salary towards their pensions. This commonsense reform created a more predictable and stable budget process allowing New York State to focus on long term goals and saved families from higher taxes.
Undoing Tier 6 pension reform would force New York State to spend billions of more dollars annually on pensions. The state’s budget has already doubled over the past decade, from $155 billion in 2016 to an estimated $254 billion in 2026. If Tier 6 pension reform is undone, it would cost the state $100 billion dollars over the proceeding years. And, as with all increase in government spending, it would be taxpayers who would have to foot the bill.
Taxpayers in New York State are demanding accountability. Undoing Tier 6 pension reform will create a more unstable budget process, cause state spending to skyrocket, and open the door for tax hikes on families. For these reasons, Americans for Tax Reform strongly opposes undoing Tier 6 Pension Reform.
If you have any questions or ATR can be of assistance, please do not hesitate to contact me, or State Projects Director Doug Kellogg, at 202-785-0266 or dkellogg@atr.org.
Sincerely,
Grover Norquist
President
Americans for Tax Reform
