Best, Worst States for Business, Tax-wise
EmailA just-released ranking of states by their “tax-friendliness” to business finds Wyoming the most-friendly and New Jersey the least.
The annual ranking is produced by The Tax Foundation in Washington, D.C., a nonpartisan, pro-business research group that has been following and reporting on U.S. federal and state tax policy since 1937.
The 10 friendliest among the 50 states are, order of amorousness: Wyoming, South Dakota, Nevada, Alaska, Florida, New Hampshire, Washington, Montana, Texas and Utah.
The 10 with the most bilious tax policies, in descending order, are: Iowa, Maryland, Wisconsin, North Carolina, Minnesota, Rhode Island, Vermont, California, New York, and geddout-a-heah New Jersey.
New Jersey, says the Foundation, owes its anchor-man standing to its having the third-worst individual income tax rate, the fifth-worst sales tax, the 13th worst corporate tax and the second-worst property tax.
Ranking the 50 states isn’t easy, the Foundation admits. For each state, its tax index takes into account 118 different variables in five major areas of taxation: business taxes, individual income taxes, sales taxes, unemployment insurance taxes and property taxes. The combination gives a state its overall ranking.
While every state levies taxes on property and on unemployment insurance, some choose not to levy one or more of the other major taxes. Wyoming, Nevada and South Dakota, for example, have no corporate or individual income tax. There’s no sales tax in either New Hampshire or Montana, and Alaska does not levy any state sales tax or individual income tax. Those states place well in the Foundation’s rankings.
Maryland, though in the bottom 10, rose in the rankings this year (from 44th to 42nd) because it eliminated its so-called millionaires tax, which had applied a rate of 6.25 percent to incomes of over $1 million.
Illinois, by comparison, dropped from 16th place last year 28th. In early 2011, it enacted a variety of new tax increases, including a 67 percent rise in the rate for personal income tax (from 3 percent to 5 percent). It also raised its corporate income tax from 7.3 percent to 9.5 percent. Businesses in Illinois, says the Foundation, now pay one of the highest corporate tax rates in the industrialized world.
The Tax Foundation’s full report.
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New Jersey, says the Foundation, owes its anchor-man standing to its having the third-worst individual income tax rate, the fifth-worst sales tax, the 13th worst corporate tax and the second-worst property tax.
I’m amazed that Chris Christie, the darling of the Conservatives and someone they hope will aspire to the White House someday, allows this to happen. What does HE know that other Republicans don’t?
Posted by: A Cynic | January 27, 2012, 1:31 pm 1:31 pm
A Cynic | January 27, 2012, 1:31 pm …….What do you expect from him – in a almost entirely Democratic state?
Posted by: deanbob | January 27, 2012, 1:56 pm 1:56 pm
Well, if you look at the unemployment by state, there is only 2 or 3 states out of 10 in each of the catagories that correlate. So, for best tax policy for business, only two of those states are in the top 10 lowest unemployment. For the worse, the same thing, only two of the states that have the top 10 ‘worst’ tax policy for businesses are in the top 10 unemployment rate states. So tax policy seems to only be accounting for 20% of the unemployment rate of an area. Interesting.
Posted by: Not UR Average Joe | January 27, 2012, 2:16 pm 2:16 pm
A Cynic | January 27, 2012, 1:31 pm …….What do you expect from him – in a almost entirely Democratic state? POSTED BY: DEANBOB******* So, Romney was Governor of another
Democratic state which is not on the worst list, please tell us your point?
Posted by: michael | January 27, 2012, 6:58 pm 6:58 pm
michael | January 27, 2012, 6:58 pm….How long WAS Romney in office and how long did it take him to do what ever it is you’re insinuating? Now, how long has Cristie been in office and what has he done since being in office?
Posted by: deanbob | January 27, 2012, 7:20 pm 7:20 pm
deanbob — Washington is almost entirely Democrat. Looks like we are number 7 on the good side to business although you would never know it by Dino Rossi, the local right winger that has yet to win and election. First; TAXES have NOTHING to do with job creation other than large corporations will pit one state against another for lower tax rates to get higher profits. Low taxes don’t create jobs, never have and never will. they enhance profits. A company with 100 employees in one state will move to another and hire ONLY 100 employees (maybe less) and pocket the saved taxes. This game the right wing governors play might create 100 jobs in one neighborhood in America but moving the company just screwed 100 families in another neighborhood in America. This is BAD for America! Tax policies are about profit margins, NOT jobs.
Posted by: dan | January 28, 2012, 1:04 am 1:04 am
Corporations are pitting state against state in a forced race to the bottom and it’s causing harm to our schools, police, fire departments and infrastructure. Apple moved jobs to China for cheep labor in workhouse dormitories and Steve Job’s cried American’s are paid too much and can’t compete. With the help of the GOP’s attack on the American employee’s ability to bargain for fair wages and benefits, we will soon be China but instead of slaves for Chairman Mao, we’ll be slaves to the Chairman of the Board.
Posted by: dan | January 28, 2012, 1:42 am 1:42 am
And the states which are the most unforgiving to special-needs children, are the least-educated, and contain the most easily manipulated populations are: Wyoming, South Dakota, Nevada, Alaska, Florida, New Hampshire, Washington, Montana, Texas and Utah.
Posted by: Daniel | January 28, 2012, 4:08 pm 4:08 pm
As a Texan, I must remind those who do not live near the border that our state deals with a flood of illegal immigrants who must be integrated into our school systems. Historically, first generation immigrants put little value on staying in school and a lot on getting jobs. Takes a generation or two to figure out staying in school pays off. We have excellent public education in Texas in most areas, but you can’t educate kids if they don’t come to school. Texas has an immigration problem, not a lack of funding for education. Some of the most well funded school districts in high immigrant areas have the lowest graduation levels. That’s the facts.
Posted by: newsjunkie | January 28, 2012, 6:58 pm 6:58 pm
michael | January 27, 2012, 6:58 pm….How long WAS Romney in office and how long did it take
him to do what ever it is you’re insinuating? Now, how long has Cristie been in office and what
has he done since being in office? POSTED BY: DEANBOB ******I love it when a simple question
is asked and no answer is given. BTW, Christie seems to have himself a personal problem. His
major fault is the he’s too egocentric.
Posted by: michael | January 28, 2012, 7:17 pm 7:17 pm
To the “middle class” in Illinois….enjoy!
Posted by: newcountryman | January 28, 2012, 7:52 pm 7:52 pm
Don’t come to Georgia….you wouldn’t like it here. It’s pure tax hell!
Posted by: newcountryman | January 28, 2012, 7:55 pm 7:55 pm