“EDITORIAL: In New York vs. Texas, it’s TKO by Texas” – The Washington Times

Posted on :Apr 26, 2014

The Washington Times

April 25, 2014

N.Y. gets a lesson in competition for attracting entrepreneurs.

Every successful politician understands that you never start a fight you  can’t win, and it’s an adage that Gov. Andrew  Cuomo of New York has taken to heart. Rick  Perry, the governor of Texas, flew to New York City the other day to round up  entrepreneurs to take a few of them back home to the business-friendly Lone Star  State. Before he left, Mr. Perry dared Mr.  Cuomo to stand up for his state’s economic policies in a one-on-one  debate.

Knowing a losing fight when he sees one, Mr.  Cuomo scurried off, ducking the issue. He understands that Texas is heaven  for entrepreneurs, and New York is hell.

George Mason University’s Mercatus Center ranks New York the least-free state in America among its  Freedom in the 50 States survey. The state ranks dead last in the center’s  analysis of economic freedom, tax burden and fiscal policy, 48th in personal  liberties and the imposition of irritating nanny-state laws, and 47th in  regulatory burdens. Pretty miserable stuff.

Texas scores 14th overall, clobbering New  York in every important category.

New York’s business taxes are high because  the state has no spending discipline. The Tax Policy Center estimates the annual  per-capita state spending in New York at  $12,123, compared to $7,231 in Texas. Another nonprofit, the Tax Foundation,  calculates that New York taxpayers work 21 more  days every year than their Texas counterparts just to feed state and local  government bureaucracies.

Time magazine reports that Texas added 274,700 new jobs from October 2012 to  October 2013 — 12 percent of all new jobs created nationwide, while New  York added just 112,700. Texans are better educated, too, by the reckoning  of the U.S. News & World Report magazine’s ranking of the nation’s best high  schools.

New York, however, does score higher than  Texas in one miserable statistic; namely, unemployment. The Bureau of Labor  Statistics measures 6.9 percent joblessness in New  York, compared with 5.5 percent in Texas.

Since 2002, no state gained more new residents than Texas, which absorbed  nearly 1.1 million newcomers. No state lost more people over the same period  than New York, hemorrhaging a staggering 1.5  million residents, many of them trading in their one-bedroom walk-ups for a  comfortable spread and a ten-gallon hat.

Mr. Cuomo understands that he has to do  something. Last month, he signed a budget that slightly reduces the suffocating  corporate income-tax rate and begins to phase out the corporate business-capital  tax and eliminates the state income tax for manufacturers. It’s a good  start.

The governor’s best-known initiative to make New  York more business friendly, however, is only a smoke-and-mirrors  corporate-welfare scheme. Start-Up NY, featured in television commercials  starring Mr. Cuomo, aims to “revitalize”  business opportunities upstate. The state and local governments will waive state  and local taxes and offer handouts for hand-selected businesses that partner  with a nearby college or university.

Start-Up NY eliminates taxes on favored businesses, sticking the unfavored  with the bills. Therein lies the cause of New  York’s uncompetitive position. Legislators in Albany are content to make  tiny tax cuts and aid a few businesses at the expense of the others, without  addressing the state’s fundamental problems of spending and regulating  everything in sight.

Until Mr. Cuomo and his colleagues make  the sweeping changes necessary to make business welcome, competing against Texas  and other states offering low taxes and reasonable regulatory burdens, it won’t  be a fair fight.

Gold Goliath is not your typical gold dealer.

Visit Us On FacebookVisit Us On TwitterVisit Us On Google Plus