Is “Tort Threat” Really A Jobs-Killer In New York?

On June 10, 2010, the New York Post’s “Post Opinion” states that New York and New Jersey are the worst states in America when it comes to the “tort threat”–the supposed burden imposed by personal injury litigation on businesses and job creation. The author of the opinion article states that personal injury lawyers are a “serious jobs-killer” and he elaborates that “when deciding where to start a business, expand operations or relocate, entrepreneurs prefer states with tort systems that discourage abusive lawsuits.” The offers his opinion that “less than 15 cents of every tort-cost dollar actually goes to the plaintiffs whose injury is supposedly being compensated.” The author advocates “reducing the tort threat” by limiting the rights of persons who are the victims of another’s negligence.

THIS IS TOTAL HOGWASH! Businesses are leaving New York State in droves because of the enormous tax burdens imposed by New York State. Unlike most other states, New York has state and city taxes that are the highest in America that keep rising and with the State’s fiscal problems, there is no end in sight. If the author of the NY Post article had bothered to ask business owners why they are leaving the State, I guarantee the answer will focus on the exorbitant tax system and not the risk of being sued.