News Summary
A recent survey of over 500 business leaders in New York reveals a pessimistic outlook on the state’s economic conditions. Key issues identified include rising costs, high taxes, and increased regulatory demands. With only a small percentage feeling represented by state lawmakers, the survey underscores a growing discontent among business owners. Proposed tax increases under mayoral candidate Zohran Mamdani raise further alarm about the business environment. The declining working-age population and dissatisfaction with the permit process highlight additional challenges that need urgent attention to foster a more dynamic economic ecosystem in New York.
New York City—Business leaders in New York State have expressed significant concerns over the regulatory environment and economic conditions they face, as highlighted in a recent survey conducted by the Business Council. The survey, which questioned over 500 business leaders, revealed a predominantly pessimistic outlook on operations within the state.
Released on Wednesday, the findings indicate that over 70% of respondents view New York’s current economic conditions as unfavorable. The primary concerns raised by business leaders include rising costs, high taxes, increasing regulatory requirements, and a shrinking workforce. Only 3% of respondents felt that state regulators understand or support their industries, and merely 2% believed that lawmakers in Albany represent their interests.
The unease among businesses is compounded by the political landscape in New York City, with the front-runner for mayor, Zohran Mamdani, proposing policies that could further impact the business environment. Mamdani’s platform includes potential tax increases for corporations and high earners while advocating for rent freezes to fund public services like childcare and transportation. Concern exists that such measures might drive businesses and jobs out of New York.
The survey’s findings also reflect the broader challenges facing New York’s economy, which has been affected by various factors including former President Trump’s tariff policies and cuts in federal funding, alongside restrictions on immigration that have impacted available labor. Furthermore, businesses report dissatisfaction with the permit process; one executive compared obtaining permits for a $200 million construction project to the simple task of ordering a pizza, highlighting a stark lack of transparency.
In an effort to address the issues raised, the Business Council and the New York State Economic Development Council have conducted over 20 meetings in the past ten months to gather feedback from business leaders regarding their experiences in navigating governmental systems. Confidentiality was maintained to encourage open communication among participants.
Despite expressing satisfaction with the quality of the available workforce, a troubling trend has emerged: New York’s working-age population has declined by 3.8% over the last decade, ranking the state 46th in growth among the 50 states. In contrast, states like Utah, Idaho, Texas, and Florida have reported double-digit percentage increases in their working-age populations during the same timeframe. High living costs and energy expenses are contributing to this trend, which not only affects New York State but also poses challenges for New York City—an area known for attracting fresh college graduates but struggling to retain mid-career professionals.
Mamdani’s rising popularity is partly attributed to his commitment to addressing affordability, as he plans to raise the state’s corporate tax rate from 7.25% to 11.5% and add a 2% surcharge on incomes exceeding $1 million. However, Governor Kathy Hochul, who appears to support Mamdani’s aims, has shown reluctance over increasing taxes, emphasizing the need to keep New York competitive with other states.
To improve New York’s competitiveness, business leaders suggested reducing business taxes as the second-most recommended strategy, following the need to cut government regulation. Respondents also raised concerns about high insurance costs, litigation, and the complexity of licensing, permitting, and regulatory processes. Mamdani’s proposed solutions include reducing fines and fees for small businesses, as well as appointing a “mom-and-pop czar” to help businesses navigate government bureaucracy.
Ryan Silva, executive director of the Economic Development Council, has noted that due to regulatory and cost-related issues, businesses are reconsidering their investments in New York. This indicates a growing urgency to address the challenges faced by the state’s business community in order to foster a more sustainable economic environment.
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Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF 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.
