New York State has the worst tax climate for businesses in the country, a nonpartisan think tank said Tuesday.
In a 56-page report, the Tax Foundation in Washington said New York ranked last among the 50 states because of high taxes on personal income and property and unemployment insurance charges for employers.
New York ranked 49th in last year’s study and has lost ground in the past two years despite successful efforts by Gov. Andrew M. Cuomo and the state Legislature to cap property taxes.
Scott Drenkard and Joseph Henchman, who wrote this year’s report, blamed New York’s fall to 50th on a deal between Cuomo and legislative leaders in December 2011 that raised taxes on the wealthy. The compromise replaced a tax surcharge that was to expire after three years and was higher than the new tax rate.
“The somewhat lower rates are more than offset by the higher tax threshold and additional bracket, resulting in New York’s ranking drop,” the authors said.
New York’s top tax rate is now 8.82 percent on incomes of more than $1 million; it had been 8.97 percent on incomes of more than $500,000.
A spokesman for Empire State Development Corp. wasn’t immediately available for comment. Development corporation president Kenneth Adams told Newsday in February he hoped a new marketing campaign, the property tax cap and fewer regulations would improve New York’s ranking in the foundation report released Tuesday.
New Jersey placed 49th and California was 48th. The best tax climate for businesses was in Wyoming, which has no corporate tax or personal income tax.