|
Getting your Trinity Audio player ready...
|
California has the 48th best (or third worst) tax climate in the U.S. according to the latest edition of the State Business Tax Climate Index, released this week by the nonpartisan Tax Foundation.
The Golden State’s rank remains unchanged from its 48th place ranking last October.
The index, now in its 11th edition, measures how well-structured each state’s code is by analyzing over 100 tax variables in five different categories: corporate, individual income, sales, property and unemployment insurance taxes.
States are punished for overly complex, burdensome and economically harmful tax codes but are rewarded for transparent and neutral tax codes that do not distort business decisions. A state’s ranking can rise or fall significantly not only because of its own actions, but also because of changes or reforms made in other states.
The breakdown of California’s ranking this year is as follows (first is best, 50th is worst):
* California’s overall State Business Tax Climate ranking: 48th
* Corporate tax structure: 34th
* Individual income tax structure: 50th
* Sales tax structure: 42nd
* Property tax structure: 14th
* Unemployment insurance tax structure: 14th
“The federal government is gridlocked, but state policymakers on both sides of the aisle are enacting truly fundamental reforms,” said Scott Drenkard, Tax Foundation economist and manager of state projects. “States are doing their part and it’s time that Washington (D.C) steps up.”
The report’s key findings include:
* The 10 most competitive states (listed from first to 10th) are: Wyoming, South Dakota, Nevada, Alaska, Florida, Montana, New Hampshire, Indiana, Utah and Texas.
* The 10 least competitive states (listed from 50th to 41st) are: New Jersey, New York, California, Minnesota, Vermont, Rhode Island, Ohio, Wisconsin, Connecticut and Iowa.
* The most notable ranking changes occurred in North Carolina, Nebraska, North Dakota, New York, Wisconsin, Maine and Kansas.
The goal of the State Business Tax Climate Index is to start a conversation between taxpayers and policymakers about how their states fare against the rest of the country, according to the foundation.
Not shocking news now is it?
Let’s vote for Jerry again and see if we can hit “50” in all categories.
Very confusing reporting and headline. Here’s how it was stated on the Tax Foundation web site;
The 10 lowest ranked, or worst, states in this year’s Index are:
41. Iowa
42. Connecticut
43. Wisconsin
44. Ohio
45. Rhode Island
46. Vermont
47. Minnesota
48. California
49. New York
50. New Jersey
“Climate” is a tricky word. This survey measures tax ‘code’ issues, not payments or burden or anything else. Jerry didn’t create the state tax code — it accrued over many, many years.
All it means is that companies have to hire the likes of ol’ Glatesy to guide them through the swamp. I’m all for simplicity and equity (as I define it), because Glates doesn’t add any real value to the system. He’s gleeful sand in the gears of commerce, but it’s a problem we’ve inflicted on ourselves. But let’s not get all pouty and frustrated over what this survey means — and especially what it Doesn’t mean.
This is a poorly written article.
Interesting turn of events in Kansas. They eliminated a large bunch of business taxes then had to cut $5Billion from their schools since business didn’t increase and employment didn’t grow much. The cut taxes so much that revenue dropped so they had to make major cuts in spending for roads, state police, school, and health care.
Oooops!
And yet, California (and especially the Bay Area) are experiencing record job growth.
So, what does that say about business taxes???
Maybe we shouldn’t be so quick to bow down before the “Tax-Cut God.”