Today’s Times has an article about the city’s efforts to lure more of the biotech industry to New York by subsidizing real estate in Brooklyn and Manhattan. It inadvertently makes the case for across-the-board tax cuts.

“Financiers from Silicon Valley have been picking off many of the most marketable ideas for new ventures and persuading their founders to set up shop in established biotech centers where operating costs are significantly lower than in New York City, like San Diego or Cambridge, Mass.,” the Times reports.

Those higher operating costs include the highest combined state and local tax rates in the country, including a commercial-rent tax in Manhattan.

As the city’s real estate market declines, private-sector costs may go lower, but unfortunately, taxes may go up. Since the city can subsidize only a relatively few companies with real-estate and other breaks, those left out may go elsewhere.

You may also like

Budget Deal Slows Medicaid Growth But Plants Seeds for Future Spending

The growth of New York's Medicaid spending is projected to slow but not stop as Governor Hochul and the Legislature effectively split their differences over health care in the newly enacted state budget. Read More

Albany Lawmakers Push a $4 Billion Tax on Health Insurance

Legislative leaders are proposing an additional $4 billion tax on health insurance plans in the upcoming state budget – but withholding specifics of how it would work. Read More

As migrants flow to NY, so does red ink 

The influx of foreign migrants to New York could cost the state $4.5 billion more than expected next year, Governor Hochul today warned.  Read More

At mid-year, NY still far below most states in pandemic jobs recovery

New York has added private-sector jobs in all but three of the 38 months since the COVID-19 outbreak of March 2020—but the Empire State remains below its pre-pandemic employment level and continues to trail the national recovery. On a seasonally adju Read More

The Bill Arrives: NY Faces $9B Budget Gap Next Year 

New York’s outyear budget gaps, the shortfall between planned state expenses and state tax receipts over the next three years, has exploded to more than $36 billion, just-released documents show.  Read More

NY school spending again led US, hitting all-time high in 2020-21

Public elementary and secondary school spending in New York rose to $26,571 per pupil in 2020-21, according to the latest Census Bureau data Read More

A Tale of Two Levies

New York school districts are getting record levels of state aid. But how many are using it to cut taxes? Read More

Albany’s Belated Budget Binge 

State lawmakers have begun passing the bills necessary to implement the state budget for the fiscal year that began April 1. Read More