For Release — October 8, 2008
New York's business tax climate is the second worst in the nation, says a new analysis by the Tax Foundation
ALBANY— The 2009 Business Tax Climate Index, which compares corporate, individual, sales, unemployment and property taxes in each state, ranked New York's business tax climate as the 49th in the country--two places below where the foundation ranked New York on its 2008 index.
New York ranked at or near the bottom in four of the five tax categories studied by the Foundation. The state's rank in the property tax category was 45.
New Jersey has the worst business tax climate in the nation, the Foundation said. Wyoming had the best.
“The modern market is characterized by mobile capital and labor. Therefore, companies will locate where they have the greatest competitive advantage,” the Foundation said, “States with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth.”
“This data shows that New York does not have the option of taxing its way out of the current fiscal crisis,” said Kenneth Adams, president and CEO of The Business Council of New York State. “Making New York's business tax climate worse would only beat down an already struggling economy. Instead, we need to reduce the tax burden, especially taxes on business property, capital and investment, to encourage growth and job creation.”
A table comparing New York's index rankings to those in other states is available here.