ALBANY, N.Y. (AP) _ New York tax collections have continued rising despite a growing income gap between its richest residents and everyone else, while a national study shows overall growth in state tax receipts slowing as the income gap widens across the U.S.
State officials say New York's progressive income tax rate, which rises to nearly 9 percent for earnings above $1.03 million, buoys its largest revenue stream for public services and programs.
However, a new Standard & Poor's study suggests gains flowing to the top 1 percent come at a broader cost to society, stunting overall economic growth and slowing average yearly gains in states' tax revenues.
It shows New York's annual average state tax revenue growth fell from 9.26 percent from 1950 to 1979 to 5.28 percent in the last decade.
