Thursday, November 2, 2023
Tax Foundation, 2024 State Business Tax Climate Index:
The Tax Foundation’s State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare. While there are many ways to show how much is collected in taxes by state governments, the Index is designed to show how well states structure their tax systems and provides a road map for improvement.
All 10 states with the worst business tax climates voted for Joe Biden in 2020, and 8 of the 10 states with the best business tax climates voted for Donald Trump.
Wall Street Journal Editorial, State Tax Masochism by the Sea:
A Tax Foundation ranking of state business tax climates shows why more companies are fleeing the coasts.
One great benefit of America’s federalist Constitution is policy competition among the states. Voters in Florida don’t have to live under New York’s laws, and Americans and businesses can vote with their feet by moving across state lines.
That truth came into focus again last week when the Tax Foundation released its annual ranking of state business tax climates, and there’s a yawning gap between the winners and losers. The best performers ease commerce by forgoing major taxes. The worst stack up punishing rates, making new business much more difficult and costly.
A gang of Democratic-run coastal states make the bottom of the list. ...
Business owners on the costly coasts are unlikely to get much relief soon, but competition may help restrain some states from pushing taxes even higher. If not, at least CEOs and corporate boards have a handy list of new potential home bases to check out.