(The Center Square) – New York has retained its dubious place at the bottom of a nationwide ranking on economic outlook, according to a new report, which faults the state’s persistently high tax burden and rising labor costs.
The American Legislative Exchange Council’s latest Rich States, Poor States report, released on Tuesday, ranked New York 31st among all states in economic performance and 50th in economic outlook.
It’s the 12th year in a row that New York has placed dead last.
“It is not hard to see why so many residents and businesses are leaving, as New York levies the highest marginal personal and corporate income tax rates in the country,” the report’s authors wrote. “Though other states in the region seem to be competing with New York to see what policies can get residents to flee the fastest – with the highest tax burdens and most cumbersome regulations – New York still remains at the very bottom.”
New York got the lowest rankings for taxes, placing 50th for top marginal personal and corporate tax rates, 47th for property taxes and 28th for sales tax.
The state’s $15 per hour wage floor also earned it 47th in the nation ranking on state minimum wages, according to the report. New York has 602 public employees per 100,000 population, which ranks 44th.
The state is ranked 47th in the nation on average workers’ compensation costs, which were estimated at $2.15 for every $100 of payroll costs.
ALEC’s annual ranking also gave New York low marks for having an inheritance or estate tax, and for not having right-to-work legislation on the books.
The annual report, timed to be released on federal Tax Day, ranks states based on “economic outlook” using 15 factors inclusive of the burden of its property tax rate, sales tax rate, top marginal income tax rate and top marginal corporate tax rate.
New York has consistently been ranked rock bottom in economic outlook by the group.
This year’s report noted that developments in Texas over the past year suggest that New York City’s status as America’s business hub “may be in jeopardy over the long term.”
“Texas is adding more jobs in banking and financial services, with many of the nation’s financial giants and Fortune 500 companies relocating and opening offices in the Lone Star State,” they wrote.
Other Northeast states, including Vermont, Maine, Connecticut, and New Jersey, also received poor economic outlook rankings in the report for their high tax burdens.
Overall, the report’s authors said this year’s findings illustrate that “Americans vote with their feet – leaving high-tax, high-regulation states in favor of those embracing low taxes, balanced budgets, and worker freedom.”
“As Washington attempts to tackle debt and bureaucracy, the states remain America’s last line of defense for fiscal responsibility and economic growth,” Jonathan Williams, ALEC president and chief economist, said in a statement. “The states leading our rankings thrive because they put the people first.”
