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Assemblyman Nathan Fletcher

State tax setup not business friendly? Tell me something I didn’t know.

The story below in today’s Sacramento Bee highlights something most Californians know all too well–our taxes are too high.  The study by the Tax Foundation ranks California as having the 3rd highest tax obligation in the country. This is hurting our small business community and driving jobs out of our state–often to the 47 other states that have a more competitive environment. 

With our unemployment rate at 12.2% and climbing, and taxes and regulations driving more jobs out of our state the legislature needs to convene to take action to change our course and  work to create jobs.  We are coming back at some point soon to deal with water–we should start to tackle the issue of job loss as well. 

Nathan

Below you will find links to the study and the news story from today. 

Tax Foundation Study Executive Summary: Click HERE.
Tax Commission Full Study:  Click HERE
Sacramento Bee Story: Click HERE

Group: State tax setup not business-friendly
Published: Wednesday, Sep. 23, 2009 – 12:00 am | Page 8B

California’s tax system is the 48th least business-friendly among the 50 states, according to the Tax Foundation, a Washington, D.C.-based research group.

The foundation’s 2010 State Business Tax Climate Index, released Tuesday, ranked California ahead of only New York and 50th-ranked New Jersey.

The foundation said its index measures the business competitiveness of tax systems based on corporate/individual income and sales, property and unemployment insurance taxes. States score higher when their tax systems encourage investment with a broad tax base and low rates.

South Dakota ranked No. 1 in the index, followed by Wyoming, Alaska, Nevada and Florida.

– Mark Glover