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flag New York City lost nearly 5,000 businesses in early 2025 due to high costs and regulations, worsening amid proposed tax hikes.

flag New York City lost nearly 5,000 businesses in early 2025, with over 8,400 closures or relocations outweighing 3,500 new openings—the weakest business formation period since the pandemic. flag The decline is linked to high taxes, extensive regulations, rising operating costs, and housing affordability issues, prompting growing exodus to lower-tax states. flag These trends coincide with newly elected Mayor Zohran Mamdani’s proposals to raise the corporate tax rate to 11.5%, introduce a wealth tax, and implement a $30 hourly minimum wage, sparking concern among business leaders. flag A September report found 72% of surveyed employers viewed New York’s economic conditions negatively, with the state ranking poorly nationally on taxation, regulatory burden, and outmigration.

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