Read It Now - More News, More Often
California's Business Tax Ranking Continues Its Poor Showing: 48th
By George Economides - Publisher
October 14, 2013 – For the third consecutive year, California ranks 48th out of the 50 states in the “Business Tax Climate Index” prepared by the Tax Foundation. The 2014 Index, released last week, “enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare,” according to the Index’s authors, Economist Scott Drenkard and Vice President Joseph Henchman.
California beat out only New Jersey and New York in the rankings. These states “suffer from the same afflictions: complex, non-neutral taxes with comparatively high rates,” the authors claim.
Five tax systems are analyzed in the annual report. California ranks 31st for its corporate tax; 50th for its individual income tax; 41st for its sales tax; 16th for its unemployment insurance tax; and 14th for is property tax.
The best (low-tax) states in each of those categories are as follows:
The authors state: “The evidence shows that states with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth. Other concerns, such as raw materials or infrastructure or a skilled labor pool, matter, but a simple, sensible tax system can positively impact business operations with regard to these very resources.”
To view the full 56-page report, including the methodology used in ranking states by each tax category, go to: http://taxfoundation.org/article/2014-state-business-tax-climate-index.
The Tax Foundation is a non-partisan tax research group based in Washington, D.C.
The Latest News
- UPDATED: $85 Million Increase To Middle Harbor Budget Approved
- Covered California To Provide Online Enrollment For Small Group Health Insurance
- Markets Remain On Slow Growth Trajectory As Pockets Of The Economy Gain Strength
- New Ordinance To Lay Groundwork For Adaptive Reuse Projects In Long Beach
- Port Of Long Beach’s Engineering Bureau Examined By Consulting Firm, May Be Restructured
- Banks Reposition Brick-And-Mortar Retail Strategy As Mobile, Online Usage Increases
- Labor Ordinances To Be Drafted For Airport And Convention Center