Rhode Island Ranks 46th Worst for Business Tax Climate
Thursday, October 11, 2012
Rhode Island is again near the bottom of another national poll.
For the second consecutive year, the Ocean State ranked 46th worst the country when it comes to taxes on businesses, according to the ninth annual State Business Tax Climate Index released by the Tax Foundation.
The report collects data on over a hundred tax provisions for each state and synthesizes them into a single easy-to-use score. The states are then compared against each other, so that each state’s ranking is relative to actual policies in place in other states around the country.
The Index is designed to enable business leaders, government policymakers, and taxpayers to make an apples-to-apples comparison of their state’s tax system.
“Even in our global economy, a state’s strongest and most immediate competition often comes from other states,” said Tax Foundation economist Scott Drenkard. “State lawmakers need to be aware of how their states’ business climates match up to their immediate neighbors and to other states in their region.”
Rhode Island scored low marks in nearly every category (corporate tax, individual income tax, sales tax, unemployment insurance and property tax). The state ranked dead last when it comes to unemployment insurance. Its best ranking was No. 25 for sales tax.
At No. 47, Vermont was the only New England state with worse rating than Rhode Island while New Hampshire registered at No. 7. According to the report, Maine saw the greatest improvement of any state in the country, jumping from No. 37 to No. 30, thanks to a repeal of their alternative minimum tax. Massachusetts was ranked No. 22 while Connecticut ranked No. 40.
“The absence of a major tax is a dominant factor in vaulting many of these ten states to the top of the rankings,” the report states. “Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes: the corporate tax, the individual income tax, or the sales tax.”
Wyoming, South Dakota, Nevada, which have no corporate or individual income tax, made up the top three states. Alaska, which has no individual income or state-level sales tax, and Florida, which has no individual income tax, rounded out the top five.
Although its corporate taxes are near the middle of the pack, New York ranked at the bottom this year by having the worst individual income tax, the sixth-worst unemployment insurance taxes, and the sixth-worst property taxes. New Jersey and California joined Vermont and Rhode Island in the bottom five.
Dan McGowan can be reached at dmcgowan@golocalprov.com. Follow him on Twitter: @danmcgowan.
Comments:
Michael Napolitano
8:34am on Thursday, October 11, 2012
"Rhode Island scored low marks in nearly every category (corporate tax, individual income tax, sales tax, unemployment insurance and property tax). The state ranked dead last when it comes to unemployment insurance. Its best ranking was No. 25 for sales tax."
Given that RI just added some new categories for the sales tax such as clothing, pet care and taxi cabs, watch the number 25 slip even lower in next years report. Of course if voters elect more Democrats they will continue to add more categories for the sales tax as there never seems to be enough.
Another bad report in our state that shows why we are ranked last for business and 2nd for unemployment. The election is less then 4 weeks away. It is time to send the General Assembly a clear message! The Democrats have no plan to get us out of this mess. RI RANKED LAST
Aaron Regunberg
8:51am on Thursday, October 11, 2012
The Tax Foundation is a rightwing think tank funded by conservative billionaires to release "research" that will support extreme rightwing positions, regardless of what reality might be. It's the equivalent of a climate denying "scientific research" outfit, for taxes.
Here's a good dissection of the total unreliability of one of their "studies": http://economistsview.typepad.com/economistsview/2008/08/the-greek-menac.html
anthony sionni
9:14am on Thursday, October 11, 2012
maybe they should have a forum at RIC to figure this out to,chafee keeps piling on the taxes>
#worstgovenorever
David Beagle
9:18am on Thursday, October 11, 2012
Pssst, Aaron, real tax payers KNOW about the tax burdens in Rhode Island, they don't need to be told by ANYONE else, how bad it is. Someday, maybe you'll see it that way too.
Michael Napolitano
10:38am on Thursday, October 11, 2012
Aaron, all one needs to do is look at the business tax rates for each state and the categories taxed and you can get the same statistic! In other words the finding isn't rigged as you suggest. They do it for all 50 states. Do you think they rigged Wyoming to be the the best just to send the report to the worst states? Do people actually buy what you are selling?
Maybe NBC rigged the statistic for RI being ranked last for business too! Oh, wait a minute, they are liberal....
george pratt
11:21am on Thursday, October 11, 2012
Aaron, I'm going to guess that you grew up in a nice house and went to private school. How much student debt did you graduate with? You have no idea what real people go through.
Dave Johnson
11:22am on Thursday, October 11, 2012
And Chafee just keeps on adding taxes, fees and regulations. As long as the public sector unions keep running this state and demanding more pay/benefits, don't expect much improvement.
Captain Blacksocks
2:58pm on Thursday, October 11, 2012
This bad ranking is just more of the same, created by the genius Democrats who have run this state for 70 years. Time for a change!!
Aaron is upset because he wants your taxes to go UP not down.
Gov- stench
5:48pm on Thursday, October 11, 2012
This state has piled up so much debt, it is amazing it is still standing. $8.1 Billion dollar budget, $15 Billion in bonded debt with the bond service sucking up approximately 6%. When you factor in the federal government's share of $2.6 Billion dollars, you can see where the lynch pin in this budget is. Regardless who wins the race for President, this country will be going over the cliff in January. Mandatory spending cuts, and the expiration of the tax cuts will all expire. Guess what impact that will have on that $2.6B. This state has not cut a budget in a decade - the democratic party is bankrupt with far left leaders spending and taxing the life out of people. You can them for mortgaging your child and future children's future.
Nathan HALE
5:51pm on Thursday, December 13, 2012
PS UNIONS,ENTITLEMENTS AND DEMOCRATS EQUALS ZERO.