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Report: New York Gives Corporations More In Tax Breaks Than Any Other State
New York's business tax incentives, a cornerstone of Governor Cuomo's two terms in office, are the most expensive and among the least effective of any in the country, according to a recent study by an economist.
The report, by Timothy Bartik of the Kalamazoo, Michigan W.E. Upjohn Institute for Employment Research, estimates that New York awarded $8.25 billion in tax incentives in 2015. The incentives, in comparison to those of the 10 most populous states in the country, cost as much as those of the next three states combined, according to Bartik's analysis.
New York gives out tax breaks to a wide variety of corporations, including developers, banks, craft beer brewers, film studios, and even, in the '90s, the owners of the New York Stock Exchange. The stated thinking behind this is that tax breaks entice corporations that might otherwise leave or invest less in the state to put money into building buildings, creating jobs, and making stuff, which will in turn lead to more jobs, more profits, and more buying along down the supply chain. Looked at another way, it's a form of trickle-down economics that rewards companies for threatening to break up with you.
There's also little evidence it works. As the Citizens Budget Commission of New York notes in a blog post on Bartik's study, a majority of the research published to date shows that tax incentives either have no measurable economy-boosting effect, or have high costs per job created. In 2013, Cuomo's own tax commission found that corporate tax incentives "may not result in a good return on investment," and suggested that "more efforts are needed to measure their effectiveness."
Report: New York Gives Corporations More In Tax Breaks Than Any Other State
New York's business tax incentives, a cornerstone of Governor Cuomo's two terms in office, are the most expensive and among the least effective of any in the country, according to a recent study by an economist.
The report, by Timothy Bartik of the Kalamazoo, Michigan W.E. Upjohn Institute for Employment Research, estimates that New York awarded $8.25 billion in tax incentives in 2015. The incentives, in comparison to those of the 10 most populous states in the country, cost as much as those of the next three states combined, according to Bartik's analysis.
New York gives out tax breaks to a wide variety of corporations, including developers, banks, craft beer brewers, film studios, and even, in the '90s, the owners of the New York Stock Exchange. The stated thinking behind this is that tax breaks entice corporations that might otherwise leave or invest less in the state to put money into building buildings, creating jobs, and making stuff, which will in turn lead to more jobs, more profits, and more buying along down the supply chain. Looked at another way, it's a form of trickle-down economics that rewards companies for threatening to break up with you.
There's also little evidence it works. As the Citizens Budget Commission of New York notes in a blog post on Bartik's study, a majority of the research published to date shows that tax incentives either have no measurable economy-boosting effect, or have high costs per job created. In 2013, Cuomo's own tax commission found that corporate tax incentives "may not result in a good return on investment," and suggested that "more efforts are needed to measure their effectiveness."
Report: New York Gives Corporations More In Tax Breaks Than Any Other State
