Winning & Losing State Tax Strategies – Compiled by GPPF

September 27, 2013

Winning strategy: North Carolina’s recent tax code overhaul is expected to move the Tar Heel State from 44th to 17th place in the Tax Foundation’s State Business Tax Climate Index, catapulting it ahead of all its neighbors except Tennessee. This is the largest rank improvement in the 10-year history of the Index and should lead to more job creation, capital formation, and higher wages for North Carolinians in the years ahead. Georgia should follow suit.
Source: Forbes magazine

Losing strategy: Ohio is the only state to grant each municipality broad autonomy to determine what is in its income tax base. The local ordinances defining these hundreds of distinct income tax systems exceed a staggering 16,000 pages, a huge compliance burden, as employers, especially contractors of varying stripes, must track their employees’ location by hour, by jurisdiction to properly comply with the differing tax codes. An electrical contractor once filed 221 W-2s for 19 employees, along with 39 business returns, most having a tax due of $5 or less. It’s no surprise that between 2000 and 2010, Ohio lost more private sector jobs than any other state except Michigan.
Source: Forbes magazine

For more information go to www.gppf.org and the GA Public Policy Foundation.

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