October 24, 2006
Tax Foundation Podcast: How Tax Friendly Are The 50 States?
For immediate release
Media contact: (202) 464-5102
Washington D.C.—A new ranking of the 50 states reveals those with the most business tax friendly climates are those with simple broad based tax structures.
Curtis Dubay, co-author of the study known as the 2007 State Business Tax Climate Index, said the rankings are based on five core components: corporate and individual income taxes, sales tax, unemployment insurance tax, and property tax.
"States that score in the top ten of our Index will generally have broad based taxes," he said. "That means there aren't a lot of loopholes, exemptions, credits or targeted tax incentives in their base."
Dubay, a Tax Foundation staff economist, along with co-author and staff attorney Chris Atkins, were interviewed in the Tax Foundation's most recent Tax Policy Podcast.
Lawmakers can use the Index as a tool to help increase their competitive advantage and attract businesses to their state, said Atkins.
"I expect at least 10 states to take a look at major tax reform next year to make their business systems more competitive," he predicted.
According to Dubay, lawmakers can make immediate economic impact by taking steps to change their tax competitiveness.
Building infrastructure to improve a state's business climate could take years. "But by going in and making a state's tax system fairer, simpler, a more efficient, a state can see improvement immediately," he said.
The interview is Number 12 in the Tax Foundation’s podcast series. It’s available online at http://www.taxfoundation.org/podcast/show/1947.html.
The Foundation publishes a podcast each Tuesday, featuring an interview that sheds light on the nation’s tax system. Best known for its annual calculation of Tax Freedom Day®, the Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.
For media inquires please email Brian Phillips or call 202.464.5102.
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