New York, Home Of Wall Street, Is Criticized for High Business Taxes

New YorkNew York, whose economy is the world's 15th largest, has the least business friendly tax policies of any state, according to a report released Tuesday by the conservative Tax Foundation. The Empire State took the dubious distinction from New Jersey, which had it for three years in a row.

Like pretty much everywhere else, jobs and the economy are the main issues in the midterm election and the heated race for governor between Democrat Andrew Cuomo and Republican Carl Paladino. Earlier this month, Cuomo proposed to cut taxes on new businesses in New York and to offer businesses tax credits for hiring unemployed New Yorkers. For his part, Paladino vows to cut taxes by 10% in his first six months in office. Officials from both campaigns did not immediately respond to requests for comment. Officials from the administration of Gov. David Patterson also were not available,

New York's main business lobby, the Business Council of New York, agrees with the Tax Foundation's conclusions, according to Michael Moran, a spokesman. He added that the state economy is still suffering because of $8 billion in tax hikes that were enacted last year alone. The group is backing Cuomo in the election.

"We think it's fair and not surprising," he says in an interview. "The last two years have made it worse.... Clearly, both gubernatorial candidates understand that taxes can not continue to rise in New York. There is a great deal of frustration among businesses."

Many other New Yorkers are no doubt frustrated as well. As the Tax Foundation notes, the state has the third worst individual income tax and ninth worst sales tax

Competition in Taxation

Of course, tax rates matter quite a deal to businesses. States often offer huge incentives for companies to relocate or place major operations in their borders. Apple (AAPL) reportedly received huge tax breaks for locating a $1 billion data center in one of the poorest areas in North Carolina. The state of Alabama has been criticized for using millions of dollars to lure Honda Motor (HMC) , Hyundai, and Mercedes-Benz to build plants within its borders. Dell (DELL) got more than $240 million in incentives to locate a plant in North Carolina, only to close it four years later. But, as the Tax Foundation noted, businesses have plenty of incentive avail themselves of such generosity.

"To businesses, which can be more mobile and must earn profits to justify their existence, taxes reduce profitability," the think tank says. "Theoretically, then, businesses could be expected to be more responsive than individuals to the lure of low-tax jurisdictions."

South Dakota topped the Tax Foundation's list. That's not surprising, since the home of Mt. Rushmore has been praised many times in the media for its business-friendly policies. It has no corporate income tax, no personal income tax, no business inventory tax, and no inheritance tax.

South Dakota Gov. MIke Rounds says: "We roll out the red carpet for businesses. We cut the red tape, but we don't cut corners."

The ten best states in the Tax Foundation's 2011 State Business Tax Climate Index were: South Dakota, Alaska, Wyoming, Nevada. Florida, New Hampshire, Delaware, Utah and Indiana. North Carolina, Rhode Island, Minnesota, Maryland, Iowa, Ohio, Connecticut, Minnesota, California, New Jersey and New York had the least business-friendly policies.

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malcolm

I sure wouldn't live in New York or California

October 28 2010 at 8:02 AM Report abuse rate up rate down Reply
birchthyme

I find it hard to believe that NY is the world's '15th largest' in terms of economics. We're dead broke here, no jobs to be found anywhere, homes foreclosing like crazy, crime way up and the corrupt Mayor and Governor are taxing anything without a pulse. Then again, what government can't profit from it will either tax or ban, like cigarettes. A truly terrible place to live in.

October 28 2010 at 4:44 AM Report abuse +2 rate up rate down Reply
soapyjeans

That's ok California is no longer the Golden State but rather "the land of dummies", rofl. It cracks me up that California is stupid enough to re elect TWO democrats that are directly responsible for the states over regulation and high taxes!!! Moonbat Brown was already governor before and he stunk and Barbara Boxer is known as the WORST senator in Congress!!! Hey she earned that title, rofl... google it, I dare you!

October 28 2010 at 1:58 AM Report abuse +3 rate up rate down Reply
Tony

AND LONG ISLAND HAS BEEN RAPED BY REPUBLICANS FOR MOST OF THE LAST 35 YEARS STARTING WITH JOE MARGIOTTA WHO EVENTUALLY DID TIME IS A RESORT JAIL...NOW WE HAVE ANOTHER REPUBLICAN IN NAMED MANGANO....HE ALSO DOES NOT GIVE A **** ABOUT SENIORS .....JUST TAX TAX TAX....I HOPE THESE BASTARDS GET CANCER IN THEIR BALLS...

October 28 2010 at 1:02 AM Report abuse -5 rate up rate down Reply
Tony

YOU THINK BUSINESS TAXES ARE HIGH....TRY BEING A SENIOR CITIZEN ON LONG ISLAND PAYING OVER $14,000.00 A YEAR IN TAXES AND $10,567.00 OF IT IS FOR SCHOOL TAXES ALONE....WE HAVE NO KIDS OR GRAND KIDS IN SCHOOL...WHO GIVES A **** ABOUT US SENIORS ...MY PENSIO CHECK & SOCIAL SECURITY CHECK DOES NOT GET ANY INCREASES BUY NO ONE CARES ABOUT THAT...THE SCHOOL TAXES ALONE THIS YEAR WENT UP $1,687.25...WHERE DO THEY EXPECT US TO GET THIS MOMEY...WE ARE NOT LUCKY ENOUGH TO BE LIKE CONGRESSMENT AND SENATORS WHO VOTE THEMSELVES RAISES...NEW YORK SUCKS AS FAR AS SENIORS GOES...AND I AM ALSO A VETERAN WHO SERVED 6 YEARS...FOR THAT I GET MY TAXES LOWERED $288.00 A YEAR....WOW OH WOW...

October 28 2010 at 12:54 AM Report abuse +1 rate up rate down Reply
1 reply to Tony's comment
T.

Our taxes are out of control and they continue to soar, the reason being, we (middle class) have to compensate for the wealthy's tax CUTS!! It doesnt make sense and it isnt fair. We are living proof that the trickle down theory was a complete failure, it doesnt stimulate the economy, it stagnates it. The only people who benefit from these screwed up tax laws are the wealthy!

October 28 2010 at 1:23 AM Report abuse -2 rate up rate down Reply
goatcars2

The states listed with the highest taxes and anti business are all heavily DEMOCRATIC.......And you wonder why their worried Nov 2 !!!!!!!!!!!!

October 28 2010 at 12:23 AM Report abuse +6 rate up rate down Reply
glennfausz

wow! 9 states listed as the ten best! In the ten worst Minnesota is listed twice. They must really be anti business

October 27 2010 at 11:16 PM Report abuse rate up rate down Reply
knute9

In New York our choice is what organized crime parties elect. I think I'm going to vote for either the Rent is 2 Dam High Party or the Anti-Prohibition Party...maybe they are not smart, but least they are genuine.

October 27 2010 at 11:12 PM Report abuse +5 rate up rate down Reply
billk0and2

I recently was fortunate enough to get hired for a job in the state of NY. As much as I love this state, upstate that is, you couldn't get me to buy a house here if Paterson himself paid for it. My wife and I actually came up to the area I am employeed and walked through more homes than I care to mention. The realtors kept saying "the taxes won't be as high for you because you qualify for the STAR program" When asked how loong it was slated to last to a person they all said it is in place permenently. Yeah right...gone within one year of employment. Anyway, I found it cheaper to live out of state, buy nothing when I am here during the week at my apartment, which is seriously less than the tax would be on the homes we looked at. If this state does not get a handle on the union crap i.e. work your ass off the last two years and then rob the taxpayers for years and also the entitlements handed out to losers who couldn't spell income if you spoted them the "come" they will be broke, not poor but broke, within the next four years.

October 27 2010 at 10:38 PM Report abuse +3 rate up rate down Reply
telebob52

ive been on the the island since birth...Brooklyn....Nassau..Suffolk...great place to live..grow up..raise kids...teachers unions killed us..i can read my tax bill...every month some dem is getting tossed in jail for stealing dough

October 27 2010 at 9:33 PM Report abuse +6 rate up rate down Reply
1 reply to telebob52's comment
Tony

WHAT U SAY IS TRUE..BUT LONG ISLAND, ESPECAILLY NASSAU COUNTY HAS RBEN RULLED AND RUN BY .....REPUBLICANS FOR MOST OF THE LAST 35 YEARS...STARTIG WITH JOE MARGIOATTA WHO ENDED UP IN A RESORT PRISON ...AND NOW WE HAVE MANGANO WHO IS ALSO UN SYMPATHETIC TO SENIORS....WHAT THE HELL...SENIOIRS ARE OLD, THEY LIVED THEIR LIVES LET THEM DIE.....

October 28 2010 at 1:10 AM Report abuse rate up rate down Reply