COSTS OF DOING BUSINESS IN NEW YORK ADD UP
January 6, 2005
The New York business community can now confirm what it had already suspected: New York State is one of the worst places in the United States to run a business, says the Wall Street Journal.
According to a report by the Public Policy Institute of New York, high energy costs and corporate taxes are the prime factors causing state's unfavorable business climate. The cost of operating a business in New York has surpassed any benefits.
The main burdens include:
- Electricity rates in New York are the second highest in the country, with Hawaii being the country's highest.
- Corporate taxes in New York are the fourth highest per capita and 171 percent above the national average.
- Health insurance costs have also placed New York second among the nation's ranks, just behind Alaska.
- Overall business costs rank New York as the ninth highest in the country.
Small wonder that New York's growth in private-sector jobs since 1993 is only half of the national average. Or that manufacturing employment over the same period is down by 27 percent, compared with the nationwide average of 15 percent, says the Journal.
New York's ability to compete for businesses is on a rapid decline. Reviving New York's economy has become a political affair involving many promises but few results. While Governor George Pataki initially reduced spending and cut taxes, election years soon reversed those changes and spending once again increased, eventually exceeding inflation.
Now armed with the facts of the report, New Yorkers must design a course of action to return the state to its former stature as a beloved place for business, says the Journal.
Sources: Editorial, "The Former Empire State," Wall Street Journal, January 5, 2005; and News Release, Public Policy Institute of New York State, Inc., December 28, 2004.
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