Thursday, July 28, 2016

Really? Move Your Business to New York State?

In 2013, the Democratic Governor of New York, Andrew Cuomo, proudly announced a new program called "Start-Up NY" that was supposed to bring thousands of new jobs to the State.  Since then, they spent millions for a nationwide advertising campaign with ads like this:

The program, which was supposed to attract new businesses with 10-years of a tax-free start-up operation, was to provide a "report card" on April Fools Day of this year.  That date came and went, and many feared that the tardiness meant bad news. They were right.  In fact, the report wasn't released until late in the day on the very Friday before the Fourth of July weekend. Other than releasing bad data on Christmas Eve, they couldn't have found a better time when so few people were paying attention.

So, here's the bad news they didn't want New Yorker's to know.

Only 403 jobs were created by the program since its inception.  By comparison, Wal-Mart could have easily beat that number by opening just one Sam's Club and one SuperCenter; and it probably did so in that same time span and without any tax break.

But, why isn't the program attracting new businesses?

Well, the answer is simple.  New York, according to CNBC, is the 3rd most expensive state to live in.  It ranks 50th as the worst state for income tax with 12.6%% in combined state and local taxes.   Add to that, it just approved a $15 minimum wage and 12 weeks of paid family leave.  If I'm a CEO considering a move to New York, I see my own pay and the pay of most of my workers subject to the highest taxes in the United States.  And, the $15 minimum wage and paid family leave, simply makes operational costs too high and a company less profitable when compared to wherever that CEO's business is currently located.

In typical fashion, Democrats just don' get it.  Taxes, all taxes, hurt business.  In the larger scheme of things, a short-term tax benefit is not going to offset all the other costs a  company has to pay if they move to New York.


Governor Cuomo Launches Start-Up NY Program at International Conference in New York City:

Start-Up NY: Why was report released late Friday?:

Best and Worst States for Taxes:

America’s most expensive states to live in 2015:

Governor Cuomo Signs $15 Minimum Wage Plan and 12 Week Paid Leave:

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