NY ranks as worst business climate
An organization has looked at the tax burden in each state – property, income and corporate taxes, as well as unemployment insurance costs – and put New York dead last.
The Tax Foundation announced the results on Wednesday. New York was 49th in 2010, behind only New Jersey. But the new ranking declares NY as the least attractive state to do business.
Wyoming is the most friendly, in terms of a light tax burden, according to the report, available at https://taxfoundation.org.
“The modern market is characterized by mobile capital and labor, with all types of business, small and large, tending to locate where they have the greatest competitive advantage,” according to the Tax Foundation report. “The evidence shows that states with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth.”
Gov. Andrew Cuomo last week announced formation the New York State Tax Relief Commission that will identify way to reduce the state’s property and business taxes to provide relief to New York’s homeowners and businesses.
The Commission will be co-chaired by former Gov. George Pataki and former State Comptroller Carl McCall. The Commission’s recommendations are due by Dec. 6, for inclusion in the governor’s 2014 State of the State message.
The Tax Foundation said states can move quickly to improve their rankings with changes in the tax code. High-tax states should fret over their ranking, especially if their neighbors are lower on the list. Pennsylvania ranks 24th out of the 50 states.
One local state assemblyman, David DiPietro of East Aurora, criticized Cuomo for New York’s last-place standing.
“We’ve been promised a ‘New New York,’ where businesses will thrive in the in-state tax shelters of Start-Up NY,” DiPietro said. “All we have seen so far are gimmicks with flashy PowerPoint presentations. New York ’s citizens and businesses continue to suffer. It’s time to make our state more viable for economic growth. A better business climate means better jobs, and better jobs mean a better economy.”