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By: Hal C Clarke
According to a recent report by the libertarian-leaning think tank, The Cato Institute, New York has once again earned the undesirable title of “the least free state” in the United States. The report, which assessed policies impacting economic, social, and personal freedoms in 2022, placed the Empire State at the bottom of the list, ranking 50th.
In contrast, Florida secured the second position, trailing behind New Hampshire as the most free state in the nation. The report highlighted New York’s dire fiscal situation, emphasizing its 50th position for economic freedom. The state received poor scores for factors such as debt, state and local taxation, government consumption, land use, and labor policy.
The Cato report, authored by William Ruger and Jason Sorens, expressed concern about the lasting impact of New York’s dismal economic freedom score. The report stated, “New York’s terrible economic freedom score is going to continue to drag the state down—and harm its ability to realize its full economic potential.”
The taxation burden in New York was a major focus of criticism. The state’s combined state and local taxes were deemed crushing, with a debt-to-income ratio of 26.1 percent, the highest in the country. Wealthy residents in New York City faced some of the highest combined state and local income taxes, reaching nearly 15% at the top level. Suburban areas also grappled with elevated property taxes.
The consequences of these policies were evident in the significant out-migration from New York. Over 545,000 residents left the state in 2022, with popular destinations being Florida, Texas, and beyond. Ruger commented on this trend, stating, “It is little wonder that New Yorkers are fleeing the state in droves.”
The authors attributed the state’s restrictive policies to the dominance of New York City and Albany in driving statewide policies. This centralization, according to Ruger, allowed left-wing ideologies and powerful interests to shape policies for their benefit, to the detriment of regular New Yorkers. Regulatory issues, such as rent control, eminent domain, renewable portfolio standards, minimum wage laws, and certificate of need laws, were specifically mentioned as contributors to the problem.
In contrast, Florida’s high ranking was attributed to its lack of state income tax. The report noted that New York has consistently occupied the last position in every Cato study since 2000.
Despite its overall poor ranking, New York received some positive marks in certain areas. The state ranked 9th for its criminal justice policies, marking its highest score in any category. However, it fared poorly in tobacco freedom, ranking 49th due to public smoking bans and high cigarette taxes.
Cato’s recommendations for New York included slashing spending and taxes, paying down debt, and abolishing rent control laws. The report did not elicit an immediate response from Governor Kathy Hochul’s office.
The Cato Institute is a libertarian-leaning think tank that conducts research and analysis on public policy issues. Known for its advocacy of individual liberty, limited government, and free-market principles, Cato provides insights and recommendations to influence policy discussions and promote ideas aligned with classical liberal values.
