When it comes to taxes, New York remains one of the worst states for businesses, according to the Tax Foundation.
The organization’s 2023 Business Tax Climate Index ranks New York second-worst in the country, ahead of only New Jersey. The Empire State has been ranked 49th for five consecutive years, and has never been better than 48th since the Tax Foundation launched in the Index in 2014.
“For overburdened employers across New York, the Tax Foundation’s new 2023 State Business Tax Climate Index is anything but surprising,” Upstate United said in a prepared statement. “New York’s business tax climate — the second worse in the nation for the fifth year in a row — makes it very difficult for small businesses to grow and succeed.”
The Tax Foundation uses five categories to determine an overall ranking, blending corporate tax rate, individual income tax rate, sales tax rate, property tax rate and unemployment insurance tax rate to create a final score. The Tax Foundation is a Washington, D.C.,-based thinktank that studies federal and state tax rates.
New York’s corporate tax rate ranks 24th of the 50 states, mid-pack, but that’s the lowest ranking in the 10 years of the Index.
The state’s individual tax rate is the worst in the country, and that’s very important because a significant number of businesses — sole proprietorships, partnerships and S corporations — report income through individual tax codes, the Tax Foundation said.
New York ranked 43rd in sales tax rate, 49th in property tax and 40th in unemployment tax. New Jersey ranks last in every category.
“This index measures how well states structure their tax systems, enabling policymakers, business leaders and taxpayers to gauge how their states’ tax systems compare,” said Robert Duffy, president and CEO of the Greater Rochester Chamber of Commerce. “One of our goals should be to move up in these rankings, and not remain in the bottom three every year.
“Residents and businesses often vote with their feet, which New York has seen this occur far too often. Reducing taxes will result in both business and population growth. This should be the goal of our state leaders.”
Upstate United, a non-partisan, pro-taxpayer advocacy coalition is comprised of business and trade organizations, certainly agrees and is urging lawmakers to implement change.
“We need our leaders in Albany to step up and deliver broad-based tax relief in 2023,” the organization said. “That relief is essential to restoring our economy, reviving our communities and reclaiming the title of the Empire State.”
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