News Summary
A recent report highlights New York’s struggling business environment, citing high taxes and regulations as primary factors driving away residents and firms. With over 500 business leaders surveyed, a mere 2% feel represented by lawmakers, while dissatisfaction with economic conditions is at an all-time high. The alarming findings point to a significant population decline and stagnant growth over two decades. Lawmakers acknowledge the need for urgent reforms to create a supportive climate for business operations, suggesting reductions in regulations and a focus on legislative changes.
New York, the state known for its bustling economy and vibrant population, is facing significant challenges that threaten its business landscape and contribute to a population decline, according to a new report from the Public Policy Institute of New York State. The report, titled “Blueprint for New York – Creating a Roadmap for Change,” indicates that the state’s high taxes and heavy regulations are driving firms and residents away.
The findings reveal a stark sentiment among local business leaders, with only 2% of surveyed business owners feeling that their interests are adequately represented by lawmakers in Albany. Additionally, 72% of business leaders assess the state’s economic conditions negatively, and just 21% believe that New York is on the right path for future economic development. Only 3% of leaders feel that regulators understand and support their businesses, underscoring a significant disconnect between business operations and regulatory frameworks.
The survey, which included responses from over 500 business leaders and input from 40 associations, paints a bleak picture of New York’s standings in migration and taxation. From 2020 to 2022, New York lost more domestic taxpayers than any other state, negatively impacting its workforce and local tax revenues. The report shows that New York ranks 50th in both migration and taxation during this period, contributing to its stagnant population growth of only 0.08% over the last 20 years.
Business and Economic Indicators
New York’s regulatory environment is also a source of frustration for many business owners. The state is noted to have over 300,000 regulations, with a high demand from businesses for fewer regulations and lower taxes. In 2022, New York’s workers’ compensation costs were ranked the 14th most expensive nationwide, with premium rates approaching 182% of the national average projected for 2024. Moreover, New York’s effective state business tax rate was 5.9% in 2023, making it the ninth-highest in the U.S.
Alongside high business costs, housing affordability continues to be a pressing issue, with 38.6% of households spending more than 30% of their income on housing. In addition, the average income of individuals moving out of New York is higher than that of those moving in, leading to a continuous net loss of wealth for the state.
Impact on Population and Future Projections
New York’s population has been on a downturn, with projections estimating that the state will have 1.5 million fewer working-age residents by 2035 compared to 2005. The working-age population has already seen a 9.6% decrease between 2005 and 2025, while states like Texas have experienced a growth of 32.5% during the same period.
Legislative Responsibilities and Reform Needs
Local lawmakers are acknowledging the findings of the report, calling it a clear indicator of New York’s ‘worst business climate.’ There is a recognizable need for reform, with suggestions ranging from legislative clarifications to the reduction of bureaucratic hurdles that often complicate business operations. Additionally, the outdated Scaffold Law, which increases insurance rates for construction projects, has been identified as a significant barrier to housing development.
Call to Action
Without major reforms to address high taxes, stringent regulations, and bureaucratic inefficiencies, the report warns that New York’s business growth will continue to decline. Solutions proposed include cutting unnecessary regulations and improving the support that regulators provide to businesses, aiming to foster a more conducive business environment.
As discussions around these critical issues gain traction, the future of New York’s economy and its ability to retain citizens and businesses hangs in the balance. The urgency for change has never been more apparent for the state’s lawmakers and business community.
Deeper Dive: News & Info About This Topic
- Daily Gazette Editorial
- Spectrum News Report on Business Climate
- NY1 Morning Briefing: Buffalo – Sept 23
- Encyclopedia Britannica: New York Business Climate
- Google Search: New York Business Regulations
Author: STAFF HERE NEW YORK WRITER
The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
