Did you know that as an individual taxpayer, you owe the federal government over $138,000? Consult the U.S. Debt Clock and you’ll see that every day that number increases. Some citizens are comfortable with this. Others citizens are very uncomfortable with it. Where do you stand?
Since 2009, the Democratic party has made it clear where they stand. Promoting a liberal-socialist philosophy, they have consistently called for higher taxes and more government spending. Additionally, they hammer business regularly, as if profit is a terrible thing. The problem with this anti-capitalism ranting is that businesses are critical to the success of America. Profit allows a business to expand and hire more workers. And given the current condition of America, more jobs would be a good thing. Yet, Democrats call for more taxes and bad-mouth business. Is that the right approach? Below is a chart ranking states relative to their business climates.
The generally accepted color label for states is based on the average margins of victory in the five presidential elections between 1992 and 2008. Purple states are states that can’t be labeled red or blue and are commonly called “battleground” states.
Using the currently accepted definition, note that six red states (Wyoming, South Dakota Alaska Montana, Texas and Utah) rank in the top ten for business climate. Two purple states (Nevada and Florida) and two blue states (New Hampshire and Washington) round out the top ten. On the other side of the scale, nine of the bottom ten least business-friendly states (Iowa, Maryland, Wisconsin, Minnesota, Rhode Island, Vermont, California, New York and New Jersey) are blue states.
Is it a coincidence that these traditionally Democratic states constantly generate news about their out-of-control state budgets? Is it coincidence that spending increases, taxes, fees for services, fines and penalties are consistently on the legislative agenda while spending cuts are labeled barbaric and ignored? Is it coincidence, for example, that Maryland (42nd) has lost some 3,500 businesses since 2006? Or that California (48th) has 11% unemployment, a $16 billion budget deficit and the nation’s worst credit rating?
Everyone should take time to consider their state. What party is historically in charge? What party is in charge now? Has there been significant changes in the last few years or recently (in mid-May Maryland passed a massive tax hike and re-defined “rich” as individuals earning $100,000) and are these changes good or bad for businesses or the citizens? Ask yourself why the recent changes were passed. Consider the neighboring states. Are these states in better or worse shape than your state? What are the reasons?
Where does your state rank? More importantly, where do you want it to rank?
2012 State Business Tax Climate Index Ranks and Component Tax Ranks
| State | Overall Rank | Corporate Tax Rank | Individual Income Tax Rank | Sales Tax Rank | Unemployment Insurance Tax Rank | Property Tax Rank |
|---|---|---|---|---|---|---|
| Alabama |
20 |
16 |
18 |
41 |
11 |
6 |
| Alaska |
4 |
27 |
1 |
5 |
28 |
13 |
| Arizona |
27 |
28 |
17 |
50 |
1 |
5 |
| Arkansas |
31 |
36 |
27 |
38 |
17 |
18 |
| California |
48 |
43 |
50 |
40 |
13 |
17 |
| Colorado |
16 |
20 |
16 |
44 |
23 |
9 |
| Connecticut |
40 |
25 |
31 |
30 |
32 |
50 |
| Delaware |
12 |
50 |
28 |
2 |
3 |
14 |
| Florida |
5 |
12 |
1 |
19 |
5 |
24 |
| Georgia |
34 |
9 |
40 |
12 |
22 |
39 |
| Hawaii |
35 |
4 |
41 |
31 |
30 |
15 |
| Idaho |
21 |
19 |
26 |
23 |
48 |
2 |
| Illinois |
28 |
45 |
13 |
33 |
43 |
44 |
| Indiana |
11 |
18 |
10 |
11 |
16 |
11 |
| Iowa |
41 |
48 |
32 |
25 |
35 |
36 |
| Kansas |
25 |
35 |
21 |
32 |
6 |
28 |
| Kentucky |
22 |
26 |
25 |
8 |
47 |
19 |
| Louisiana |
32 |
17 |
24 |
49 |
4 |
23 |
| Maine |
37 |
47 |
30 |
10 |
40 |
38 |
| Maryland |
42 |
14 |
46 |
9 |
45 |
40 |
| Massachusetts |
24 |
34 |
15 |
17 |
49 |
47 |
| Michigan |
18 |
49 |
11 |
7 |
44 |
30 |
| Minnesota |
45 |
42 |
44 |
36 |
34 |
26 |
| Mississippi |
17 |
11 |
19 |
28 |
8 |
29 |
| Missouri |
15 |
8 |
23 |
26 |
9 |
7 |
| Montana |
8 |
15 |
20 |
3 |
20 |
8 |
| Nebraska |
30 |
33 |
29 |
27 |
12 |
37 |
| Nevada |
3 |
1 |
1 |
42 |
42 |
16 |
| New Hampshire |
6 |
46 |
9 |
1 |
39 |
41 |
| New Jersey |
50 |
39 |
48 |
46 |
25 |
49 |
| New Mexico |
38 |
38 |
33 |
45 |
14 |
1 |
| New York |
49 |
23 |
49 |
37 |
46 |
45 |
| North Carolina |
44 |
29 |
43 |
47 |
7 |
35 |
| North Dakota |
29 |
21 |
35 |
15 |
31 |
4 |
| Ohio |
39 |
22 |
42 |
29 |
10 |
33 |
| Oklahoma |
33 |
7 |
38 |
39 |
2 |
12 |
| Oregon |
13 |
31 |
34 |
4 |
33 |
10 |
| Pennsylvania |
19 |
44 |
12 |
21 |
37 |
42 |
| Rhode Island |
46 |
40 |
36 |
24 |
50 |
46 |
| South Carolina |
36 |
10 |
39 |
20 |
38 |
21 |
| South Dakota |
2 |
1 |
1 |
34 |
41 |
20 |
| Tennessee |
14 |
13 |
8 |
43 |
27 |
48 |
| Texas |
9 |
37 |
7 |
35 |
15 |
31 |
| Utah |
10 |
5 |
14 |
22 |
24 |
3 |
| Vermont |
47 |
41 |
47 |
14 |
19 |
43 |
| Virginia |
26 |
6 |
37 |
6 |
36 |
27 |
| Washington |
7 |
30 |
1 |
48 |
18 |
22 |
| West Virginia |
23 |
24 |
22 |
18 |
26 |
25 |
| Wisconsin |
43 |
32 |
45 |
16 |
21 |
32 |
| Wyoming |
1 |
1 |
1 |
13 |
29 |
34 |
| Note: The 2012 Index represents the tax climate of each state as of July 1, 2011, the first day of the standard 2012 state fiscal year. Rankings do not average across to total. States without a given tax rank equally as number 1. Source: Tax Foundation.org |
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