Rudolph’s nose is glowing, Santa’s sleigh is packed — and the Tax Foundation is once again calling out New York state’s high taxes.
The foundation recently released its yearly Business Tax Climate Index and, as has become a December tradition as regular as Old Saint Nicholas’ Christmas Eve flight, the foundation found New York’s business tax climate ranks second-worst in the country.
New York ranks dead last in individual income tax rank, 42nd in sales tax rank, 47th in property tax rank, 36th in unemployment insurance tax rank and 24th in corporate tax rank.
“New York was one of the rare states to raise taxes in 2021, citing revenue concerns,” the Tax Foundation’s news release on the Business Tax Climate Index stated. “Previously, New York levied a flat 6.5% corporate income tax, but lawmakers created what is functionally a second bracket with a 7.25% rate for companies making over $5 million. The top marginal individual income tax rate, meanwhile, has risen from 8.82% to 10.9%. The legislature also reversed the phaseout of the state’s capital stock tax, reinstating the tax at .1875%, which lowered the state’s property tax ranking by one place. Despite these changes, New York’s overall rank remained at 49th.”
New York’s overall business tax climate index position remained 49th in the nation despite the actions taken in 2021.
“The Tax Foundation’s new 2022 State Business Tax Climate Index is a sad reminder that New York’s tax burden has been too high for too long. For the third year in a row, New York’s business tax climate ranked 49th in the nation,” said Justin Wilcox, Upstate United executive director. “That’s not progressive – that’s problematic. Approximately 1.4 million residents have fled New York since 2010. Without meaningful broad-based tax relief, more families and businesses will leave in search of a more affordable environment. Our message to Albany is simple and urgent: We need to get our economy moving — not our people.”
Read More: State’s Business Tax Climate Again 49th In Nation