New York State is one of the most anti-entrepreneurial environments
in the nation, according to a new report by the Small Business
Survival Committee (SBSC).
New York ranked 45 on the list of 51 business environments
in the study. Only California, Rhode Island, Maine, Minnesota,
Hawaii, and the District of Columbia ranked lower.
For its eighth annual index, the SBSC tied together 21 government-imposed
policies that affect small business, including personal, corporate
and real estate taxes, workers' compensation costs, and state
legal liability costs.
The SBSC, an organization that lobbies lawmakers for pro-business
policies and legislation, pointed to New York's anti-growth
policies as a reason for its low index rating.
In 2003, New York increased the personal income, capital gains,
and sales tax rates.
"The best policy environment for entrepreneurship and
small business consists of low taxes, limited government,
restrained regulation, and government protecting life, limb
and property," the report concluded.
"States following such a government philosophy will reap
great rewards from America's entrepreneurs."
The Business Council and its research affiliate, The Public Policy Institute, have long argued that New York undermines its competitiveness by imposing one of the highest overall tax burdens in the nation.
"Our local taxes averaged $2,378 for every resident
in 2000, more than twice
the national average," a January, 2003 report by The
Institute said.
And, in a March 2003 report, The Institute showed that businesses pay more than a third of all tax revenues collected by the state and local governments in New York.
That report, A Fair Share--At Least!, found that businesses pay about one of four dollars collected by the state government, and more than 41 percent of property taxes raised by municipalities and schools.