Study: LI residents pay more federal taxes than those making same money elsewhere in the US
A recently released report examines just how overtaxed Long Island residents are due to the higher cost of living as opposed to other parts of the country.
The study, dubbed "A Tale of Three Cities," found that the cost of living on Long Island is higher than in other parts of the country, yet all federal taxes are the same.
The study focused on three middle-class families from across the nation in Hicksville, Akron, Ohio and McAllen, Texas. While the McAllen family received a $3,289 federal tax refund and the Akron family received a $1,458 refund, the Hicksville family owed $1,511.
The study focused on a number of cost of living factors such as mortgage and property taxes. It also showed that a Quarter-Pounder at McDonald's costs $1 more in Nassau County than it did in McAllen.
Rep. Steve Israel is proposing changes to the tax code in different regions of the country, as well as giving tax credits to account for cost of living.
"You shouldn't be taxed based solely on what you earn," said Rep. Israel. "You should be taxed based on what you earn, less what you pay."
He says he has support in Washington, but he realizes that he faces an uphill battle toward getting a bill passed.