Posted on 03/26/2008 5:37:48 PM PDT by shrinkermd
WASHINGTON, Mar 18, 2008 - A new study from the Tax Foundation, a nonpartisan tax research group in
Washington, shows that most American states tax job providers at a higher rate than any other country in the developed world.
"This is startling news for America's businesses and workers," said Tax Foundation president Scott Hodge, the study's author. "Tax competition for jobs and investment is fierce, and the U.S. continues to fall further and further behind. Our states should be the world's leaders in many things, but high taxation should not be one of them. The high federal corporate tax rate is literally crushing states' competitive abilities. That means fewer jobs for American workers."
Counting the federal rate alone, the U.S. has the world's highest corporate tax rate, but including average sub-national rates (federal plus state in the U.S.), Japan edges out the U.S. for the highest-tax location (see table).
This new study breaks the tax down state-by-state, adding each state's corporate tax rate to the federal corporate tax rate. The results show that 24 states impose, when combined with the federal rate, a higher business tax rate than in any other nation. In fact:
"If federal lawmakers are serious about making the U.S. corporate tax system more competitive globally, they will have to partner with state officials to lower the nation's overall corporate tax burden," Hodge added. "Likewise, state officials should have a vested interest in cutting the federal corporate tax rate because there is only so much they can do to improve their own competitiveness. After all, even corporations in the three states that do not impose a major state-level corporate tax—Nevada, South Dakota, and Wyoming—still shoulder a higher corporate tax rate than France, and 25 other major countries, because of the 35 percent federal corporate rate."
The table below lists each state's combined corporate tax rate, and then compares them (bolded) with the rates of our major trading partners and competitors.
I note the first four (in order) are: Ia, Pa, Mn and Mass.
This should be shoved in the face of everyone here that argues raising taxes will protect our industries.
Thanks.
I’m a little surprised.
New York, California and Texas are really driving a lot of the economy, particularly exports. Two of those have fairly high taxes.
Any time.
Perhaps someone should point out the dual fallacies in this article - first, that taxes are mor important than regulatory constraints.
That is a lie.
Second, that FEDERAL taxes are the root cause of these state’s pain.
That is a double lie.
It’s because the dollar has dropped . . . .
Don’t forget, corporations don’t pay taxes ... people do.
Minnesota can kiss 3M good bye after the latest tax increases! They are far beetter off building their plants overseas! Way to GO Minnesota lawmakers! (ya dumb putz’s!)
That’s a big part of it.
But innovation is key too.
Lots of companies have oil but not everybody comes with all the specialty chemicals and plastics like they do in Texas, for example.
But less than Mn, Ia, Mass and so forth
It always amazes me that everyone wants corporations to "pay their fair share", then gripe that everything is so expensive. Especially when it comes to oil companies.
I like to take the opportunity to educate people about how business operates.
So lowering taxes will save industries? Can anyone guarantee that would happen?
This is a part of the structural problems in the US, the Federal Govt can cut tax rates, if states do not cut rates, across the board not merely giving tax credits to one industry, we will see continued erosion.
The chart doesn’t include County and City taxes either, and that 5% or higher property and inventory tax adds up as well.
Well seeing that there is a mound of empirical evidence that shows companies move within the United States based on tax considerations (much like individuals), I'm not sure what you are driving-at when you ask for a "guarantee." The private sector doesn't work that way. If you want guarantees you need a government job.
Merely rhetorical 1rudeboy.
No one can really guarantee much of anything and we don’t have smiley’s etc.
BTW, as I stated, those tax numbers are to low, City and County and Utilities that dispense resources, there are a host of other factors that would combine the cost of doing business in some US states simply amazing.
Some states have corporate income taxes for example, and WalMart was zapped for some 30+ million after they were deemed to have been avoiding some state corporate income tax.
Where can I find this chart ?
found it.
What is the “Gross Receipt Tax” they say Texas has? I thought there was no income tax, state or corporate, in Texas.
>>It always amazes me that everyone wants corporations to “pay their fair share”, then gripe that everything is so expensive. Especially when it comes to oil companies.
I like to take the opportunity to educate people about how business operates.<<
I’ve had good luck with an argument like this?
When you make money should you pay taxes twice?
Well, what if two people have a partnership should they pay taxes and then pay taxes again wen they divide the profit?
Well then why is money that corporations make taxed and then the dividends or stock increase taxed again for the shareholders?
Now some people will just not let go of the idea that taxes are good but sometimes I get through.
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