NEW YORK CAN AFFORD TAX REFORM
June 8, 2007
New York City's business tax rate dwarfs those of other cities and needs to be reviewed to make the city more competitive, according to a new report by the nonpartisan Citizens Budget Commission.
According to the authors:
- Business taxes in the New York City are more than double those in Westchester County (a New York Metropolitan Transportation Authority region) and more than 70 percent higher than those in Los Angeles.
- The average effective business tax rate in the city is 7.5 percent; it is 5.2 percent in Houston, 5.1 percent in Boston, and 5 percent in Newark and Miami.
- Discrepancy in tax rates between New York and other cities would be even greater had the analysis included several other taxes paid by city businesses, including the commercial rent tax, the real property transfer tax and the mortgage recording tax.
The authors say the city can afford a tax reduction because it has a surplus of more than $4 billion. This is the third consecutive year the city has collected a surplus exceeding $3.5 billion.
"The city is doing tremendously well economically," a deputy research director at the Citizens Budget Commission, Elizabeth Lynam, said. "It can afford to make the kinds of investments it needs to make to stay competitive and taxes should be in the forefront of that discussion."
Source: Grace Rauh, "Report: New York Can Afford Tax Reform," New York Sun, June 8, 2007.
Browse more articles on Tax and Spending Issues