Paul L. Caron
Dean



Monday, November 23, 2015

2016 Business Tax Climate: Chilliest in Blue States

Tax Foundation logoThe Tax Foundation has released the 2016 State Business Tax Climate Index, which ranks the fifty states according to five indices: corporate tax, individual income tax, sales tax, unemployment insurance tax, and property tax. Here are the ten states with the best and worst business tax climates:

1

Wyoming

41

Maryland

2

South Dakota

42

Ohio

3

Alaska

43

Wisconsin

4

Florida

44

Connecticut

5

Nevada

45

Rhode Island

6

Montana

46

Vermont

7

New Hampshire

47

Minnesota

8

Indiana

48

California

9

Utah

49

New York

10

Texas

50

New Jersey



Interestingly, all ten of the states with the worst business tax climates voted for Barack Obama in the 2012 presidential election, and seven of the ten states with the best business tax climates voted for Mitt Romney.

Tax Foundation

Wall Street Journal, The State Tax Bowl:

The College Football Playoff rankings are intensely contested by teams and their fans. This week the Tax Foundation released its tax policy equivalent, which ought to be a major embarrassment for the blue state conference.

https://taxprof.typepad.com/taxprof_blog/2015/11/2016-business-tax-climate-chilliest-in-blue-states.html

Tax, Think Tank Reports | Permalink

Comments

Is TF unintentionally making the case that taxes climate is almost irrelevant to economy growth? I mean, when I think of states that generate well-paying, new economy jobs, I naturally think of Wyoming, South Dakota, Alaska, and Florida. Wait .....

Maybe the 4 states with the worst tax climates are economic backwaters that generates nothing but low-skilled, low wage jobs? Let's look. New Jersey (top biotech job market), California (top software/computer job market), New York (top financial services job market), and Minnesota (top medical devices and materials job market).

Hmmm.....

Maybe public investments that help you develop an educated workforce and cultural resources that allow you attract educated immigrants (i.e., not being complete racist hicks) has more to do with fostering a good economy than tax climate. Maybe .....

Posted by: Nathan A | Nov 23, 2015 5:29:09 PM

Well said, Nathan A.

Posted by: Nick Ferron | Nov 24, 2015 11:18:27 AM

New York will always have an attraction (because of its really long history compared with everything west of the Hudson) and California's climate is still a draw and is an entrepot for Asians. But for growing a family or an economy, you can't afford to go there. Walking around Manhattan you see more dogs than children. People are moving. That's why New York lost 2 seats in the US House after the last census and Texas got them plus 2 more.

Posted by: TexEcon | Nov 25, 2015 8:18:30 AM

Nathan doesn't need data. He has a host of anecdotes, prejudices and just-so stories. Yet he is a member of the group that just loves science and only care about what works.

Posted by: Bob | Nov 25, 2015 11:24:22 AM

Alright. But land zoning and tax climate are not the same thing.

Posted by: Nathan A | Nov 25, 2015 5:28:34 PM

Really, Bob? Is it really not evident that CA, NY, MA, and MN are home to a lot of new economy jobs?

Do you see a correlation between the TF's rankings and economic performance? (http://www.businessinsider.com/state-economy-ranking-july-2015-2015-7)

Posted by: Nathan A | Nov 26, 2015 4:16:59 AM