Congratulations, California! You have the second worst business climate in the country!
Earlier today the Tax Foundation released its 2011 report on the Business Tax Climate Index. Here are the ten worst states:
50. New York
49. California
48. New Jersey
47. Connecticut
46. Ohio
45. Iowa
44. Maryland
43. Minnesota
42. Rhode Island
41. North Carolina
Here are the ten best states:
1. South Dakota
2. Alaska
3. Wyoming
4. Nevada
5. Florida
6. Montana
7. New Hampshire
8. Delaware
9. Utah
10. Indiana
One conclusion the Tax Foundation notes is, hopefully, self-obvious:
The lesson is simple; a state that raises sufficient revenue without one of the major taxes will, all things being equal, out-compete those states that levy every tax in the state tax collector’s arsenal.
Meanwhile, “The states in the bottom ten suffer from the same afflictions: complex, non-neutral taxes with comparatively high rates.”
The report is lengthy but has numerous nuggets that all tax geeks (and policymakers) should read. Unfortunately, it is highly unlikely that any lawmakers in the Bronze Golden State will take heed of the ideas noted above.