News Summary
A new report reveals that New York’s high taxes, strict regulations, and high cost of living are driving businesses away and causing population decline. With a survey indicating dissatisfaction among business leaders, policymakers are urged to reconsider regulations to promote economic growth. Despite these challenges, some still believe in New York’s competitive edge in innovation and high wages, prompting discussions for necessary changes to attract businesses and residents.
New York is experiencing significant challenges as a result of its high taxes, stringent regulations, and expensive cost of living, 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,” reveals that these factors are not only driving businesses out of the state but are also contributing to a notable population decline.
The study surveyed over 500 business leaders across New York, and the results underscore a growing sense of dissatisfaction within the business community. Only 2% of business owners surveyed believe that lawmakers in Albany represent their interests. Furthermore, a staggering 72% of respondents do not think that New York’s economic conditions are favorable. Only 21% of the surveyed business leaders believe that the state is heading in the right direction. Additionally, a mere 3% feel that state regulators understand and support their business needs.
Recent data points highlight the severity of the situation in New York. The state has ranked 50th in terms of migration and taxation from 2020 to 2022, losing more residents and imposing higher individual taxes than any other state. During the most recent legislative session, lawmakers introduced 24,195 bills—five times the national average—and the state currently enforces over 300,000 regulations. Business leaders are calling for fewer state and local regulations, as well as lower business taxes, to foster a more conducive environment for growth and entrepreneurship.
New York’s business climate is also impacted by its compensation costs; the state ranks 14th highest in workers’ compensation costs, with premium rates at 182% of the national average in 2024. Business taxes remain significant as well, with New York’s effective state business tax rate recorded at 5.9% in 2023, ranking it the ninth-highest in the country. These high taxes and the complex regulatory environment are noted as barriers to growth, investment, and innovation within the state.
Population trends in New York appear stagnant, with the state’s population increasing by only 0.08% over the last 20 years, marking it as the third slowest-growing population in 2023. From 2005 to 2025, New York lost 9.6% of its prime working-age population, while states like Texas have seen a 32.5% growth in that demographic. The cost of living exacerbates these challenges, as New York has the fourth-highest percentage of housing-burdened households, with 38.6% of residents spending over 30% of their income on housing. Furthermore, childcare costs for one infant and one toddler average about $36,000 per year, often surpassing typical housing or college tuition costs.
The report also criticizes New York’s Scaffold Law, which reportedly raises insurance costs on construction projects by at least 10%, creating further obstacles for housing development. Many businesses are struggling to attract new employees, leading to concerns that those relocating tend to have higher incomes than those moving into the state.
State Republican officials argue that current laws and regulations hinder business success and have suggested changes to better facilitate growth. Business leaders have expressed that the extensive regulations create a “painful environment” for operations in New York. In response, some policymakers are advocating for more effective collaboration between agencies to streamline processes and better represent business interests.
Despite criticisms in the report, opponents argue that New York remains competitive in several sectors, including innovation and venture capital investment. The average wages in New York are purported to be significantly higher than those in Texas and Florida, largely due to a concentration of higher-wage industries. Lawmakers have shown a willingness to engage in discussions focusing on how to support business growth and enhance the overall economic landscape.
Governor Kathy Hochul has also initiated calls for input from stakeholders to pinpoint outdated regulations that could be lifted, all while ensuring that necessary health and safety standards are maintained. There is a clear acknowledgment from various sectors of the need for change in order to retain and attract businesses and residents in New York.
Deeper Dive: News & Info About This Topic
- Spectrum Local News
- Wikipedia: Business Climate
- The New York Times
- Google Search: New York business regulations
- ESG Dive
- Google Scholar: New York business taxes
- Spectrum Local News
- Encyclopedia Britannica: New York economy
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.
