ProfessorBainbridge.com: State Business Tax Climates

ProfessorBainbridge.com: State Business Tax Climates:

The Tax Foundation's annual report is out. As usual, California is among the worst state climates for business - although we're only 40th in the nation, as opposed to 45th and 46th the last 2 years. The Foundation makes a very simple point that seems to escape the folks up in Sacramento:

"The modern market is characterized by mobile capital and labor. Therefore, companies will locate where they have the greatest competitive advantage. States with the best tax systems will be most competitive in attracting new businesses and be the most effective at generating economic and employment growth."

To be sure, globalization is an issue. But the powers that be in California ought to be more worried about the fact that right next door in Nevada is the 5th best business tax climate in the country. Yet, despite all this, Rob Reiner wants to increase income taxes for the 'wealthy' - which directly impacts small businesses, whose owners pay ordinary income taxes on their earnings - by $2.4 billion. (See the delightfully named StopReiner.org)"