The effective combined U.S. federal, New York State and New York City tax rate of roughly 46% to 47% that corporations pay on their New York City profits is not only the highest, but in comparison to the lowest roughly 30% (combined Canadian federal and provincial rates) in the Canadian provinces of Alberta, British Columbia and Quebec, that rate is more than 50% greater.
The villain in the piece is the New York City component — roughly 9% gross and effectively 6% when deductions for federal taxes are factored in. Without that, the city rate would be roughly 40% to 41% — still higher than the 34% in neighboring and contiguous Ontario but clearly competitive with California and other major U.S. states.
This New York City comparative disadvantage will only grow vis-à-vis Canada as it phases in a further 5% reduction in the Canadian federal corporate tax rate by 2012.
You may also like
"...the Empire Center is the think tank that spent months trying to pry Covid data out of Mr. Cuomo's government, which offered a series of unbelievable excuses for its refusal to disclose...five months after it (the Empire Center) sued, Team Cuomo finally started coughing up some of the records." -Wall Street Journal, February 19, 2021
SIGN UP TO READ ABOUT THE ISSUES IMPACTING NEW YORKERS.
Enjoying our work? Sign up for email alerts on our latest news and research. Together, we can make New York a better place to live and work!