BUSINESS & ECONOMY
Around the Nation: Tax Foundation Report on the States
A report just released by the Tax Foundation has given the unwelcome title of least "business-friendly" states to -- no surprises here -- New Jersey, New York and California. On the other end of the spectrum is South Dakota, which has the most business-friendly tax system, followed by Wyoming and Alaska. Evaluating states based on taxes that matter most to businesses -- corporate income, individual income, sales, unemployment insurance and property taxes -- the foundation found that the blue state trio boasts "the most inhospitable [tax structures] to economic growth." The foundation noted, "The ideal tax system ... is simple, transparent, stable, neutral to business activity, and pro-growth."
Interestingly, a study released earlier this year by the Mercatus Center at George Mason University ranked the same bottom three states among the five least free states in the country in terms of economic and personal freedom as measured by "state and local government intervention across a wide range of public policies." New Hampshire, which tied for first in freedom, also came in as one of the Tax Foundation's most business-friendly states.
Unfortunately, the most anti-business states have yet to fully grasp the connection. For example, it appeared to be news to California Gov. Arnold Schwarzenegger's office when it announced this week that small business regulations have cost the state $492 billion and a whopping 3.8 million jobs, amounting to $134,122 and one job loss per small business in 2007.
So, freedom = economic growth, while burdensome government regulations = economic contraction. Coincidence? We think not.
Excellent analysis and reporting by the Patriot Post