For a sense of the damage being wrought by costly government pensions in New York, and other out-of-control spending, take a long, hard look at a new Tax Foundation report.
In its annual survey of the “business climate” in the 50 states, the group last week ranked New York 49th. (New Jersey came in dead last.)
Gov. Cuomo has vowed to make New York competitive — but the report shows just how far he has to go.
To come up with its rankings, the foundation looked at a range of taxes in each state; New York and New Jersey led the pack. And neither made any headway in 2011, compared to other states, over 2010.
Jersey Gov. Chris Christie has pushed through a 2 percent cap on property-tax growth, and his new budget calls for a 10 percent cut in income taxes. Cuomo also pushed through 2 percent property-tax cap. But reforms in Albany last month rejiggered income-tax rates, lowering those on the low end but hiking them for millionaires.
Bottom line: New York’s tax burden remains oppressive.
And a huge disincentive to businesses.
What to do?
Cuomo’s attempt to roll back pensions is a vital step in curbing Albany’s outlays —and easing the tax hit. And he’s tried to keep his first two budgets from growing out of control — as budgets have in the past.
But the Tax Foundation report is a splash of cold water.
If New York wants to open its doors to new businesses — and keep the ones it’s got — taxes will have to come way down.
Budgets, too.