A recent article in Forbes confirms what us Californians intuitively knew: California is the most tax-burdened state in America. This has been confirmed thanks to a study by the Pacific Research Institute which looked at two critical factors: 1) how much of the state's economy (the gross state product) is taken up by local and state government spending; and 2) how favorably is the state's tax structure designed to benefit small businesses to encourage growth, investment, and innovation.
When burden and structure are combined, the most tax efficient state in the Union is South Dakota, followed closely by Delaware, Nevada, Texas, and Louisiana.
The lowest-ranked states? South Carolina, New York, and....California in dead last.
California politicians have been rankled by a recent advertising campaign by the State of Nevada which encourages small businesses in California to pull up stakes and move across state lines. But until those same politicians address the crushing tax burden--coupled with the brutal tax structure they have erected--California's once shining influence will continue to diminish. And businesses will continue to leave the Golden State in droves.
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