New York state's skyrocketing business taxes are taking a toll on its corporate dominance.
For the third time, New York has been trumped as the home to the most Fortune 500 companies.
NY LOSING BIG BIZ AS TAXES SOAR
Adding insult to injury, it was unseated by Texas, which can now boast of having fostered the country's most profitable companies, a Fortune list released last week shows.
California topped us in 2003, and Texas beat us by one firm in 2005.
"It doesn't take a corporate CEO to understand that with low business taxes and a zero-percent tax on individual income, Texas is a much more attractive place to locate than New York," said Scott Hodge, president of the Tax Foundation.
New York's tax system ranked third to last in the nation in the 2008 Business Tax Climate Index put out by the Washington, DC-based foundation.
Texas has no personal-income tax - compared to New York's 6.5 percent - and rather than a corporate-income tax, which tops 17 percent in New York City, it has a gentler franchise tax, said E.J. McMahon, director of the Manhattan Institute's Empire Center for New York State Policy.
"The Fortune 500 companies that are based in New York City, or that have offices in New York City, are the most heavily taxed corporations in the country, bar none," McMahon said.