The Tax Foundation considers New York to have the worst business climate of all states. While the state actually ranked in the better half in terms of corporate taxes, its individual income tax policy was ranked the worst in the country. The state collected $1,864 in personal income taxes per capita in 2011, higher than all other states. In addition, the Tax Foundation considered the state's unemployment taxes and property tax policies among the most burdensome of all states. Nevertheless, 17 of the 2012 Fortune 100 companies are located in New York, with nine of these companies among the Fortune 50. . . . despite the tax burden, many companies, especially large ones, are attracted to New York due to such factors as its large population and proximity to Wall Street.Of course, the state's "large population" and "proximity to Wall Street" benefit us in Utica, Syracuse and Buffalo how?
Where does NY's ranking leave Upstate?
8 comments:
I've had with Sir Andrew giving tax breaks with my money to his corporate contributors. Cuomo is without a doubt the worst governor in recent memory including Spitzer & should be thrown out of office at the next election. Oh, lets not forget his minimum wage scam whereby he's sticking state taxpayer's with the bill, while outfits like McDonalds get a free ride with our money! Cuomo is pathetic.
No news here!
The relocation of several downstate back office operations to our area was prompted to some extent by our proximatey to Wall St. This has resulted in thousands of local jobs between here and Syracuse.
I agree with the first Anonymous. I find it difficult to imagine who could be worse than Cuomo. The biggest joke is the two percent tax cap. Even school districts have learned the art of creative budgeting to circumnavigate this joke of a law. Perhaps the ultra Socialists like New York’s Mayor Bloomberg or Hillary would make formative contenders, but Cuomo takes the cake.
To add to the two percent tax cap issue as being a huge joke: Creative taxation in order to comply with the State’s tax cap and increase revenue indefinitely turns out to be quite profitable for local governments. Now the City of Utica is floating its newest trial balloon. They have entitled it as “a Paving and Roadwork Tax.” The idea here is to broaden the variety of taxes to not only add to the number of taxes, but it will also be a nonexempt tax in order to burden the churches and nonprofit organizations. It will also expand their two percent tax cap. Not only have they chased business out of the city, but now they are ushering the churches and nonprofit organizations out too!
One of Utica's problems is the amount of property that is tax exempt. That property could be taxable if not occupied by non profits. One only has to drive the length of Genesee St. to grasp the situation. At the same time, non profits receive the same city services as tax paying properties. Also, no service fee type plan would include churches. As for other non profits, the city would actually benefit if they did relocate and free up taxable land for private sector use. Who will accept them, New Hartford? Ha!
Having studied Urban Management in college several years ago, space limitation will not yield enough room to outline what I feel Utica needs to do to pull itself out of its economic dilemma. But having worked in downtown Utica for over thirty years, I have seen the deterioration of the retail sector as government and the nonprofits moved in to fill the gap. These nonprofits, government, education and insurance employ thousands of people who support the local downtown businesses. One only needs to compare the traffic in the downtown area on weekdays opposed to that on weekends and holidays. With the absence of these employees on weekends, Utica’s downtown resembles a virtual ghost town. Without these employees who support the remaining retail shops, eateries, parking areas, auto repair and tire shops, would need to relocate or close.
It is indeed an economy of scale, but the scale is a sliding one. One that has diminished as the retail sector moved to more fertile economic locations. Over the years Utica has had several opportunities to repair its retail environment, but sadly as it kept failing to act in a timely fashion. Retail shops fled to shopping centers in neighboring towns to remain profitable. As costs expand Utica, like many other local governments and school districts, finds itself scrambling to uncover ways to expand its tax collections to circumvent the Governor’s two percent tax cap. Sadly, most nonprofits operate on shoestring budgets with no surplus funds to contribute to the City. By leveling fees on the nonprofits Utica may just chase away thousands of customers who support the remaining downtown businesses. The ghost town analogy may expand from two to seven days a week.
Excellent post, g&b!
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