Many small businesses are fleeing to escape the high tax rates in New York City and moving to lower-cost places such as Florida.
According to Biz2Credit CEO Rohit Arora, New York is still booming but the cost of doing business continues to increase. Labor costs and rent are continuing to increase with mandates such as paid sick leave and an increase in minimum wage to $15 hitting small business owners hard.
The city dropped from the top spot to number four in the national ranking of the best cities for small business growth. It was also ranked last in the American Legislative Exchange Council’s ranking of the most economic competitive cities and states.
Capital markets and regulatory consultant Mayra Rodriguez Valladares explained that New York City is raising taxes because it only has about $59 billion in assets to pay its liabilities totaling about $244 billion.
Analysts estimate that New York City is losing more than 100 residents to other states daily. On the other hand, the sales of business enterprises and high-end condos in Miami has surged because of recent arrivals of business owners from New York. Despite this situation, NYC is still ranked number one in terms of small business revenue. Cash flow of local businesses is also surging, which a median cash flow of $146,670.