Comments from business leaders on 'Action for Jobs '06' agenda

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"The very high costs that New York imposes on employers prevents the state from consistently competing for national or international projects. Until New York becomes a lower cost state, Upstate New York’s economy will continue to deteriorate. The additional cost that would be added to this already heavy burden by these ill-conceived legislative proposals would add significantly to Upstate’s economic distress. The fact that they are even being seriously considered is distressing."

Brian McMahon
President, New York State Economic Development Council
[email protected]
518-426-4058

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In 50 years, New York has gone from the number one economy in the world to underperforming almost all other states. New York’s business taxes are higher than those in most states, according to a Federal Reserve Bank analysis that showed our corporate taxes were 82 percent higher than average, and the fourth-highest nationally. Recently, the Tax Foundation identified ours as the least business-friendly tax climate in the nation, and the US Department of Commerce ranks New York 44th overall among the 50 states, thanks in part to being 45th in personal income growth; 45th in population growth; and 45th in employment growth.

This has consequences for people in upstate and downstate communities and can only be reversed by reducing the costs of doing business, starting with taxes, but including key embedded costs such as workers’ compensation, health and liability insurance. Economic underperformance has spurred a loss of population, particularly young people, who follow the jobs and businesses that are moving to other states, downsizing, outsourcing, or closing their doors for good. One prominent NFIB member has referred to it as New York’s “slow economic death spiral,” and it must be addressed now.

Mark Alesse
State director, NFIB
[email protected]
518-434-1262