NY’s taxes, biz mandates are driving out its Golden Goose — the finance industry
Greedy progressives’ “squeeze the rich” taxes and over-the-top business mandates are dangerously eroding the state’s most vital economic pillar: its finance and insurance sector.
That’s the alarming takeaway from independent researchers at Economic Leadership in a new report for the Business Council of New York State and two industry groups.
“While other places are growing, New York has seen stagnation or loss . . . with both businesses and residents relocating,” warns EL’s Ted Abernathy.
In particular, finance and insurance-industry job growth in other states has left New York in the dust: While the nation saw a 4% jump in these jobs from 2019 to 2022 — with North Carolina enjoying an 18% spike, Idaho 15% and Florida 13% — Empire State growth was virtually nonexistent.
Meanwhile, the years-long flight of residents out of New York, notably wealthy ones, accelerated over those years, with the population plunging 2.7%, the sharpest drop of any state.
The finance and insurance sector’s decline, vs. other states, should raise a major red flag, given its role as the state’s Golden Goose: Last year it contributed $327 billion (16%) to New York gross domestic product, the most of any sector.
And each finance-sector worker, the study notes, generates nearly three more jobs in other sectors — so industry stagnation hurts the state’s entire economy.
The lack of growth also means no new tax revenue for the state, which is facing a jaw-dropping $36 billion budget gap by 2027, state Comptroller Tom DiNapoli reported in July.
What’s driving businesses, jobs and residents away?
No secret, there: New York’s tax burden, the highest in America, is the one “competitive factor” that’s “likely playing an influential role in the migration of high-net-worth individuals,” the study said.
Its “business climate” and high cost of living are also key factors.
The researchers urged “leaders across New York to forcefully address the competitiveness issues that threaten one of its most valuable and critical economic forces, the finance industry.”
The Business Council’s Heather Mulligan echoes that: “Bad fiscal and business practices in New York state equate to losing people and jobs,” she says. “To reverse this trend, New York needs meaningful change now or we risk further jeopardizing the prosperity of the driving force of New York’s GDP.”
Alas, the state’s progressives remain clueless: They got a spineless then-Gov. Andrew Cuomo to hike taxes on the wealthy by a whopping $4 billion in 2021, and now-Gov. Kathy Hochul followed up this year with another $1.1 billion tax hit on businesses.
New York’s “leaders” simply won’t be happy until all the revenue-generators have fled — and the state is irredeemably broke.