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|SUBJECT ||Subject: [NYLXS - HANGOUT] BEING TAXED OUT OF N.Y.
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From: "Inker, Evan"
Subject: [NYLXS - HANGOUT] BEING TAXED OUT OF N.Y.
Date: Fri, 24 Mar 2006 18:34:29 -0000
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BEING TAXED OUT OF N.Y.
By FREDRIC U. DICKER
March 24, 2006 -- ALBANY - The high cost of New York taxes is damaging the
ability of business across the state to thrive in an increasingly
competitive national climate, a new survey released yesterday by the state
Business Council said.
More than half of the businesses responding to the survey said they were
considering leaving the state, moving some of their operations to other
states, or shutting down completely.
The survey, by the state's largest business organization, found that 90
percent of respondents believe New York's combined state and local taxes -
the highest in the nation - were harming their competitiveness.
152 Washington Ave. • Albany, NY 12210-2289 • 518/465-7511 • www.bcnys.org
FOR RELEASE: Immediate — Thursday, March 23, 2006
CONTACT: Matthew Maguire • 518/465-7517 ext. 276 • mobile: 518/461-1345
BAD NEWS: EMPLOYERS SAY NEW YORK'S TAXES UNDERMINE COMPETTIVENESS
GOOD NEWS: EMPLOYERS ARE POISED TO REINVEST TAX-CUT SAVINGS IN GROWTH
Respondents to new Business Council survey also say other high costs,
especially electricity, workers' comp, and health insurance, must be reduced
ALBANY—New York State employers overwhelmingly agree that New York's taxes
undermine their ability to compete and prosper here, a new Business Council
survey of employers shows. More than half of respondents said they had
considered leaving New York State, closing operations here, or putting
growth in other states.
But the survey also shows that many New York State employers are poised to
devote much of the savings they would get from proposed tax cuts in
economy-boosting investments, including capital investments, creation of new
jobs, and improvements in pay and benefits for workers, a new Business
Council survey of employers shows.
"If our economy is being left in the dust even by Appalachia, clearly it's
because our taxes and basic costs are too high," said Business Council
President Daniel B. Walsh. "Employers are saying plainly they need simple
policy changes to reduce basic costs, not new government programs or the
fantastic notion that current government programs are enough to address our
Many respondents to the survey added comments in which they wrote
passionately about the need to reduce the tax burden. Others said that other
costs that are infamously high in New York State—electricity, workers'
compensation, and health insurance—also require attention from policy-makers
The Council conducted the survey in March. Surveys were sent to 1,676
Council members; the response rate was 15 percent for 279 responses all
The survey showed that:
More than 90 percent of respondents strongly agreed (71 percent) or agreed
somewhat (20.8 percent) that New York's combined state and local taxes hurt
their companies' ability to compete. New York's state and local tax burden
is the nation's heaviest.
Nearly 90 percent of respondents also strongly agreed (64.2 percent) or
agreed somewhat (25.4 percent) that business taxes hurt competitiveness.
More than 85 percent of respondents strongly agreed (62.4 percent) or agreed
somewhat (24 percent) that other state taxes, including personal income
taxes and the state's estate taxes, undermine their competitiveness.
Respondents were especially emphatic in criticizing the effects of property
taxes, including school, county, and municipal taxes, in undermining their
competitiveness. More than seven of 10 respondents (70.6 percent) strongly
agreed; another 17.9 percent agreed somewhat.
Although many respondents noted that they have no way to leave New York
State, a surprising number, more than half, indicated that they have
considered leaving, closing shop, or putting growth in other states. Of
these, 28.3 percent strongly agreed, and 27.2 percent agreed somewhat, that
New York's tax burden has prompted their companies to consider closing or
relocating to another state, or to place new growth in other states.
Despite this glum picture of the effects of New York's high taxes, employers
overwhelmingly indicated that much of their savings from any tax reductions
would be reinvested.
More than eight of 10 respondents strongly agreed (53 percent) or agreed
somewhat (28.3 percent) that they would invest a significant portion of the
savings from proposed tax cuts in capital projects such as improvements to
process technologies and equipment upgrades.
Comparable numbers of respondents strongly agreed (50.9 percent) or agreed
somewhat (29.7 percent) that they would likely invest some of the savings
from tax cuts in improved pay and benefits for workers.
And eight of 10 respondents also strongly agreed (52 percent) or agreed
somewhat (29.4 percent) that they would likely invest savings from tax cuts
in creating new jobs and hiring new workers.
Respondents were invited to add their own comments to survey. These comments
focused on taxes and several other issues. Here are some of the comments:
“A reduction in these taxes would benefit our company in every way. With
this money allocated elsewhere, such as in advertising and hiring new
employees, we will be able to see our vision of growth actually happen
instead of paying it out in taxes."
“Based on current political trends in tax law and regulation, it is clear
that New York State has no interest in keeping the manufacturing economy
Other costs of job creation:
“As a manufacturer, we have increased cost of production stock and
components, energy/power, workers’ comp premiums, and especially the high
premiums for employee health insurance benefits.”
“High property taxes, workers’ compensation, utilities taxes, fuel taxes,
cut deeply into our profits and keep us stuck in place.”
"In addition to the burdensome tax load in New York State, there needs to be
reform and significant reduction in energy costs. These costs as much as any
other taxes are causing me to look elsewhere for more business-friendly
Recruiting and retaining good workers:
“Another concern is we are unable to find persons with the technical
qualifications for our new job requirements.”
“The greatest problem is a decrease in the education of a quality-oriented
The possibility of leaving the state:
"I am currently considering moving the company anywhere but New York State.
The costs are ridiculous. Taxes are outrageous. Basically, New York is
“Over 95 percent of our business is done with customers out of New York
State. Without major changes in New York, we will be forced to manufacture
“Power costs/electricity is another big issue also. We might have to move to
the south because of this cost.”
“Too little too late. Shut down after 65 years 12/31/05.”
The need for less government spending:
“New York State also needs to reduce the size of government. Families and
businesses are doing more with less every day; government needs to do this,
“In addition to cutting taxes, overall spending also needs to be reduced.”