CALIFORNIA BUSINESS MINUTE
Tax Climate
10-06-09
Hi, I am Tim Johnson and welcome to the California Business Minute.
Only two states have worse business tax climates than the Golden State,
according to a study released last week by The Tax Foundation.
The 2010 State Business Tax Climate Index ranks California at No. 48 for
its climate, the same ranking in 2009. The state comes in ahead of New York
and New Jersey.
The Index measures the competitiveness of each states tax systems and ranks
them based on corporate income, individual income, sales, property and
unemployment insurance taxes.
California scored relatively high for its property tax (rank of 13) and
unemployment insurance tax (rank of 14). Those scores were not enough,
however, to over come its 34th ranking for corporate income tax, and its
48th ranking for both individual income tax and sales tax.
The state has been in the bottom 10 for the past five years, from
No. 42 in 2006 to a low of No. 49 in 2008.
While California has long been criticized for its ‘anti-business’ tax
structure, its unemployment rate is less than neighboring state Nevada
which is constantly trying to recruit business from the state.
I am Tim Johnson and this has been the California Business Minute.
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