Federal Aid Sought for City Business
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Business leaders in the city are seeking federal help by citing a report showing that New York’s international competitors are gaining ground in attracting investment.
The president of the Partnership for New York City, Kathryn Wylde, said the organization, which worked with Pricewaterhouse-Coopers on the report, used the new data during conversations with members of the state’s congressional delegation yesterday to highlight concerns about the country’s position in the international marketplace.
“When we have the highest corporate tax rate, the most expensive costs of lawsuits, and we’re at the high end of the scale for the cost of doing business, something has to give,” Ms. Wylde said.
The report ranked 11 international cities, big and small, on nine separate measures. Rather than ranking cities solely on so-called old economic measures, such as the cost of doing business, it also looked at a number of unusual measures, including the number of top universities, the number of Nobel Prize winners, the percentage of broadband Internet users, and the number of registered patents.
“Thanks to telecommunications, technology, and the global marketplace, the location of jobs can be anywhere,” Ms. Wylde said. “Historically, the natural assets like ports and trade routes determined whether cities had certain competitive advantages. Those natural advantages can no longer be taken for granted.”
The report found that New York edges out its primary competitor, London, when it comes to business investment, but the lead is narrow.
According to 2005 data used by the partnership and PricewaterhouseCoopers, New York was home to 24 global 500 company headquarters, while London had 23. Paris had 27, and Tokyo had 52. Ms. Wylde also said the average corporate tax rate in America is about 40%. It is about 30% in London and 25% in other European cities.
A spokesman for the city’s Economic Development Corporation, Andrew Brent, cited a recent report released by Mayor Bloomberg and Senator Schumer that highlighted the increased competitiveness in the global financial marketplace.
Mr. Brent said there is a need for “a change in federal regulation and policy to ensure that remains the case.”
