When new US Census figures for 2013 are released Monday, they’re expected to show that the state has slipped behind Florida in population — or almost surely will next year. That would put New York in fourth place nationally. Upstate in particular has seen a mass exodus that’s eclipsed New York City’s population gains.
What explains it? Well, it’s not the weather so much as the climate (for commerce and industry, that is). Fact is, Florida beats New York hands down as a place to run a business. Upstate’s economy is near-dead. And people go where the jobs are.
Not only is Florida one of just seven states with no income tax, its constitution bars localities from imposing their own income taxes. With no tax on income, firms can pay workers less and still have them come home with higher take-home pay.
New York, by contrast, has a top state income-tax levy of 8.82 percent. The city has additional imposts of its own, varying between 2.907 percent and 3.876 percent (and Mayor-elect Bill de Blasio wants to raise it even higher to fund his pre-K plan).
Florida also has no estate tax. New York’s runs between 5.085 percent and 16 percent.
There’s more: As a right-to-work state, Florida is able to limit the power of unions and their ability to drive up labor costs, yet another lure to businesses.
All told, the Tax Foundation’s State Business Tax Climate ranks Florida fifth — and New York dead last.
Meanwhile, regulations on public-sector unions keep state spending — and the taxes needed to finance it — in check.
New York’s response? Wednesday, it’s hiking its minimum wage to $8 an hour. That won’t be much higher than Florida’s rate, but it’ll top the $7.25 wage in 27 other states. Hope they appreciate the business.