Wednesday, March 2, 2011

The Tax Man Cometh: How Does Your State Compare?

"While most Americans focus on federal tax rates, a new report shows the state and local tax burden can be equally painful.

"The average tax burden in Connecticut, New York and New Jersey exceeds 12 percent, which is roughly equal to the national federal income tax average of 12.2 percent.

"But the lengthy study by the Tax Foundation, a nonpartisan, nonprofit think tank, found more remarkable comparisons between states.

"For example, the five lowest tax states, Wyoming, Tennessee, South Dakota, Nevada and Alaska pay about 40 percent less in taxes than the highest tax states, New Jersey, New York, Connecticut, Wisconsin and Rhode Island.

"There is also a massive disparity among states that are friendly to business.

"When researchers combined the costs of government regulation and red tape with the total tax burden of income, property, sales, corporate and unemployment taxes, the worst states to do business are New York, California, New Jersey, Connecticut and Ohio.

"The best are South Dakota, Alaska, Wyoming, Nevada and Florida. Powerhouse Texas comes in at 13."

The rest of the article is here.

We in California do not live in a vacuum. Business will, and have been for some time now, move to other more business-friendly areas - within or without the USA. As times passes, Californians will have to make the difficult choices being made in Wisconsin and Ohio today.

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