Tax Foundation report places state at third worst for business tax climate
The Tax Foundation, a leading independent tax policy research organization, recently released its State Business Tax Climate Index, comparing the tax systems of all 50 states.
New York State did not fare so well.
The Foundation’s annual review of tax policy places New York State as the third worst tax climate for business in the nation. The poor ranking is a reflection on the state’s high personal income taxes, property taxes and sales taxes as compared to other areas of the country.
“When 47 states have a better tax climate, attracting and retaining business in New York is a challenge, to say the least,” noted Dottie Gallagher, President & CEO of the Buffalo Niagara Partnership. “The Tax Foundation report gives business leaders and government policymakers a gauge to review New York tax policy and continue the conversation on where improvements need to be made.”
The report was not all bad news for New York.
When it comes to corporate income taxes, New York State placed seventh in the country, holding steady at the same spot as the last two years. Phased in reforms to the state’s corporate income tax system have helped reduce the corporate tax rate to its lowest level since 1968.
The report’s authors – three experienced tax policy analysts – note that, even in our global economy, a state’s greatest competition often comes from other states. That is why it is important for our lawmakers to be aware of how New York’s business climate matches up against the state’s immediate neighbors and to other regional competitor states.
The Tax Foundation’s State Business Tax Climate Index is required reading for anyone with a stake in New York State’s tax policy. Click here to read more and download a copy of the report.