New York state is literally brimming with potential and I have no doubt in my mind that we have exactly what it takes to take back our rightful position as the nation’s Empire State. We are among the top leaders in Education (#1), Technology and Innovation (#2), and Access to Capital (#3), according to CNBC’s annual Top States for Business.
If we are committed to cultivating the best and brightest, fostering innovative ideas and investing in our future, how is it still possible that we fail to expand and revitalize our own economy? While CNBC lauds our wonderful state for these factors, overall, New York is ranked the 26th best state for business, which is mediocre at best. Even more troubling is the ranking from the highly respected American Legislative Exchange Council’s annual report, “Rich States, Poor States,” spearheaded by leading economist Arthur B. Laffer; for the second year in a row, New York has been ranked dead last for Economic Outlook. How can this wonderfully vast, talented and resource-rich state be so troubled in economic growth?
Early in the stages of the U.S. economic downturn, the Division of Budget under the Paterson administration indicated New York would feel the effects of the national downturn deeper and longer than the rest of the nation. New York families are so deeply affected by the stalled economy that it has been truly painful. It has been painful to the point that it has continued to exasperate the mass exile of human talent and workforce to other states.
What is it, exactly, that is standing in our way? It’s quite simple, our very own state government. Albany has taxed and regulated our economy quite literally to its near demise. When we are faced with increasingly insurmountable obstacles to our economic growth, we must think with a fresh mind and realize what we have been doing isn’t working.
New York small businesses are paying a staggering total of $57 billion in taxes. Considering all the property, sales, “job killing” corporate franchise, business income, excise and gross receipts, unemployment and various other taxes disguised as licenses and fees, it is no wonder that companies are reluctant to invest in our state and that mom-and-pop shops are closing their doors.
While we have set aside funding and tax credits for new job creation projects, I must emphasize to my legislative colleagues and to Governor Cuomo that when we come to the table in the 2012 session, we must seriously consider what positive impact, if any, has our state’s tax policy made on New Yorkers and their ability to find and create good-paying jobs that can feed their families and give their children a better future. We must recognize we are past the point that we receive anymore benefit from the high rate of taxes in this state.
If one needs proof, look at our ever-increasing taxes, fees, fines, assessments and regulations and you will see a troubling correlation of dramatic job loss and slowed economic growth. Burdensome tax policy, in fact, has held back our great state, making it difficult for each of us to forge our own way toward economic independence.
So when economists and studies tell us that New York’s high cost of doing business, high cost of living, loss of workforce and business unfriendliness is hurting our economic potential we need to listen. Even more important, when New York small businesses, manufacturers and farmers tell us this we must absolutely act.
Now that we devised a plan to close the state’s budget gap, reforming our tax policy must be priority number one as we come forward next year. Doing so will help to breathe life into our economy and will give New Yorkers a more prosperous future.
As always, if you have questions or ideas regarding the state economy or any other state matter, please contact me at either my Herkimer Office at (315) 866-1632 or my Johnstown Office at (518) 762-6486. Send comments or questions to butlerm@assembly.state.ny.us.