November 25, 2003
Tax Watch: New York is losing economic ground to lower-tax states
New York is losing economic ground to states that tax their citizens and businesses less, according to a new paper in The Public Policy Institute's Tax Watch '04 series.
Between 1992 and 2002, private-sector employment grew 21.1 percent nationwide, the paper said. Low-tax states, especially Florida, Georgia and Texas, grew one-and-a-half times as fast as the nation, or more, but New York, in contrast, grew at only half the national rate.
The 23 states that grew faster than the national average have per-capita state and local tax burdens that average 9 percent below the national average.
The Public Policy Institute, The Business Council's research affiliate, launched the Tax Watch '04 series earlier this month. The series of papers will document the stultifying effect of taxes on New York's economy, and the importance of restraining government spending as an essential first step in reducing New Yorkers' tax burden.