Monday, April 13, 2015

Oppressive Taxes And Regulations Killing Upstate New York Economy

Oppressive Taxes And Regulations Killing Upstate New York Economy
Oppressive government regulations and taxes beating down Upstate New Yorkers have assaulted the region for years, leaving cities like Binghamton on the path to Detroit-level devastation. However, all is not lost. The hope of prosperity is evidenced in the success of less regulated and prosperous Native American tribe businesses
in the state.
The Upstate cities of Rochester, Buffalo, Syracuse, and Binghamton have experienced poverty levels upwards of 30 percent in 2013, all having increased from 2010 levels, according to U.S. Census data. Detroit sits at a 39.3 percent poverty rate with Syracuse, Binghamton, and Rochester right behind at levels of 34.6 percent, 33.3 percent, and 32.9 percent respectively.
Detroit edges out the others in home ownership, with 52 percent homeowner-occupied housing between 2009 and 2013, whereas the New York cities mentioned host rates as low as 39 percent. Each city had a similar population density to Detroit.
Jobs, income, and residents in the former agriculture and manufacturing-leading Upstate New York regions have been experiencing the pain of government overreach for over 50 years, argues a Deseret News article.
“Basically what you’ve got in New York is a state tax code and regulatory regimen written for New York City,” Joseph Henchman, vice president
for state projects at the Tax Foundation in Washington, told the paper. “Legislators say, `Look, New York is a center of world commerce. Businesses have to be here. It doesn’t matter how high we tax them.’ I hear that a lot. But when you apply that same logic to upstate, the impact is devastating.” Similar to the exodus seen from California, businesses have forsaken the Upstate region for more friendly venues. “In 1988, Kodak employed 62,000 people in Rochester, ” Rochester Business Alliance president
Sandra Parker told Deseret News. “Today it employs 4,000. Xerox has moved most of its people out while Bausch & Lomb, which was founded in Rochester in 1858, has left entirely.”
How high taxes and regulation are killing one of the most prosperous states in the nation
Upstate New York is becoming Detroit with grass.
Binghamton, New York — once a powerhouse of industry — is now approaching Detroit in many economic measures, according to the U.S. Census. In Binghamton, more than 31 percent of city residents are at or below the federal poverty level compared to 38 percent in Detroit. Average household income in Binghamton at $30,179 in 2012 barely outpaces Detroit’s $26,955. By some metrics, Binghamton is behind Detroit. Some 45 percent of Binghamton residents own their dwellings while more than 52 percent of Detroit residents are homeowners. Both “Rust Belt” cities have lost more than 2 percent of their populations.
Binghamton is not alone. Upstate New York — that vast 50,000-square mile region north of New York City — seems to be in an economic death spiral.
The fate of the area is a small scene in a larger story playing out across rural America. As the balance of population shifts from farms to cities, urban elites are increasingly favoring laws and regulations that benefit urban voters over those who live in small towns or out in the country. The implications are more than just economic: it’s a trend that fuels the intense populism and angry politics that has shattered the post-World War II consensus and divided the nation.
Upstate New York, the portion that lies beyond the New York metropolitan area, has become “The Land That Time Forgot,” a broad swath of depressed cities and low-profit farmlands that stretches from Newburgh and Poughkeepsie in the Hudson Valley through the old manufacturing centers of Schenectady and Troy, across the Allegheny Plateau to Syracuse, Rochester and Buffalo, all the way west to Jamestown, the city with the lowest percentage of college graduates in America.

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