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NY ranks last in business climate index

August 9, 2011

It is axiomatic that we want job creation in New York – what New Yorker wouldn’t want to see our unemployment rate go down? Since jobs are created when companies hire employees, it would seem obvious that all New Yorkers would be supportive of public policy that encourages employers to set up shop in New York. Well, if you thought that is what our New York elected officials were locked in on – a laser-like focus on jobs – you would be sadly mistaken. Taxes are an important part of the policy mix that makes one jurisdiction more attractive relative to another, and on that basis one study ranks New York state … 50th! Last Place!

According to the Tax Foundation, New York has the worst State Business Tax Climate. In fact, over the past four years New York has dropped each year from 45th place in 2008, to 47th in 2009, 49th in 2010 and finally, to dead last in 2011.

How can we – New Yorkers – expect our economy to flourish when our politicians keep raising the tax rates? When they raise tax rates,
they stifle economic activity – taxpayers, both businesses and individuals, leave the state – and tax revenues decline. And how do our New York politicians respond? They raise tax rates ever higher, causing even more taxpayers to flee the state.

As the Tax Foundation points out, “The modern market is characterized by mobile capital and labor. Therefore, companies will locate
where they have the greatest competitive advantage. States with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth.” It should not come as a surprise then that no state is losing population faster than New York – our tax burden is chasing people and businesses out of the state, and they are relocating to more tax friendly jurisdictions.

It is time to FIX NYC. It is time we cleaned political house. 50th place – should our elected officials take a bow,
or should they take a hike? Let’s send them packing!

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