The Tax Foundation has released its 2010 State Business Tax Climate Index, which tracks the best and worst places to do business in America every year. Clark has long believed that states that tax the most lose population, as residents and businesses exit – no matter if they have a sunny climate or other desirable geography.
The simple fact is that states have to learn to do less for their citizenry. It would be great if state government could do everything for everybody. But that’s unrealistic. There is no free lunch. And this is not about government doing more by becoming more efficient, either. States will have to make hard choices about how to do less.
New Jersey, New York and California are the worst places for businesses. If you still think it’s a weather issue, consider that New Hampshire has the seventh best taxation environment. And Vermont right next door? No. 41 and losing economic vitality all the time.
The best states to do business in include South Dakota, Wyoming and Alaska. Not exactly sunny climes.
Remember, the lowest tax states generally have the greatest economic growth. And states with the highest burden on citizens and businesses suffer the greatest economic declines.
Clark does have one bone to pick with Tax Foundation’s research. They suggest that targeted tax credits to bribe businesses to locate in a particular place are a great idea. Clark completely disagrees. Helping one business means taxing another more.