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ALBANYA huge majority of New York State employers say the state's
high taxes and high costs of health insurance, workers' compensation,
and electricity are hurting their ability to do business, a new Business
Council survey of New York employers shows.
"This message from employers is an alarm that Albany cannot ignore,"
said Heidi Nauleau, chairman of the Aarque Companies of Jamestown, Chautauqua
County, and chairman of The Business Council. "New York's employers
clearly believe that New York must do more to address cost issues at the
core of our economic competitiveness.
"Past improvements in our business climate have not been enough
to give our businesses the sound economic footing they need to compete,"
she added. "Albany must do more."
The survey,
which addressed a wide range of issues that affect business conditions
in New York, was mailed to Business Council members in September. There
were 590 responses to the mailed survey, a response rate of 11 percent.
In October, The Council also posted the survey on its Web page and invited
other associations to suggest that their members complete it. All told,
there were 628 responses.
The survey showed
how employers perceive the effects of a range of costs. For example:
- Health insurance benefits: Almost nine of 10 respondents (89
percent) said the cost of employee health insurance has a high impact
on their operations. Most of the rest (9.5 percent) said the impact
of these costs is moderate. Virtually no one (1.3 percent) said the
effect of health insurance costs on their operations is low.
- Taxes: Employers are concerned about the effect on their operations
of taxesall taxes.
For example, nearly nine in 10 said New York's real property taxes have
a high (55 percent) or moderate (33) impact on their operations. Only
12 percent described the impact as low.
Similar percentages said New York's personal income taxes had a high
(52 percent) or moderate (36 percent) effect on their operations. And
most respondents also said corporate income taxes have a high (45 percent)
or moderate (34 percent) effect on their operations.
- Workers' compensation: More than nine of 10 respondents said
workers' compensation costs have a high (71 percent) or moderate (23
percent) impact on operations. Concern was more pronounced upstate,
where 73 percent said the impact was high. Downstate, 55 percent ranked
the impact of workers' comp costs high.
- Energy: Nearly nine of 10 respondents said the high cost of
electric power has a high (53 percent) or moderate (35 percent) effect
on their operations. Respondents showed slightly less concern about
the costs of natural gas, with 39 percent saying these costs have a
high impact on their operations and 37 percent describing the effect
as moderate. One-quarter of respondents said the effect of these costs
is low.
- Labor laws and regulations: More than eight of 10 respondents
said state labor laws and regulations have a high (43 percent) or moderate
(41 percent) effect on their operations. Respondents showed slightly
less concern about federal labor requirements, with 32 percent saying
these requirements have a high impact and 50 percent saying they have
a moderate impact.
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