“Gives Taxpayers, Lawmakers a Guide to Their States’ Rankings on Vital Tax and Fiscal Measures
Washington, DC, March 1, 2011-Today the Tax Foundation is releasing the 2011 edition of Facts and Figures: How Does Your State Compare?, a pocket-sized guide ranking all 50 states on 32 different measures of taxation and fiscal policy. Topics include individual and corporate income tax rates, business tax climates, state-local tax burdens, and excise tax rates. Facts & Figures is edited by Mark Robyn, staff economist at the Tax Foundation.”
The 2011 edition of Facts & Figures: How Does Your State Compare? is available here.
Read the rest here.
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What really jumps out in the tables is the miniscule proportion of state revenue that is supplied by corporations doing business in that state – almost any state – compared to the property, personal and sales taxes. Yet the argument that we need low corporate taxes to attract business falls flat as Missouri has a very low revenue number from corporate taxes and yet is losing corporations from the state.
Sik, yeah, there are many loopholes that companies use to avoid paying state taxes. However, this doesn’t mean that the argument for low corporate taxes falls flat. There are many corporations that have not had special interest lobbies to create the loopholes.
One loophole that could be closed is this one:
Tax Evasion by Multi-State Corporations. Some multi-state corporations avoid paying corporate income tax by funneling profits made in Missouri to one of four states that do not have corporate income tax, and by taking advantage of other loopholes. In contrast, Missouri-based companies, those founded by Missourians that headquarter in our state, are doing the right thing and contributing tax revenue to support
the infrastructure and services that they benefit from and which allow their companies to be successful.
Missouri should insist that multi-state companies meet the same tax requirements that our Missouri‘born” companies do. Currently, more than half of the states have passed legislation requiring “combined reporting” measures. These measures plug loopholes and help multi-state companies to fairly asses the amount of tax revenue due to each state that they operate within. Enacting combined
reporting in Missouri could net as much as $100 million per year.
The biggest problems with taxes in America is the complexity. This is due to the gov’t carving out exemptions and tax breaks for favored constituencies. Tax breaks and exemptions have often been used by politicians to reward special interests for campaign donations and other support.