California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The Tax foundation has released its annual ranking of the best and worst tax
systems in the nation for 2010 and California continues it low standing.

South Dakota's tax system is most welcoming to economic activity while New York's
tax code ranks 50th as the least hospitable. "States do not enact tax changes in
a vacuum," said Scott Hodge, president of the Tax Foundation. "Every tax change
will affect a state's competitive position relative to its neighbors." The goal
of is to focus lawmakers' attention on the importance of good tax fundamentals:
enacting low tax rates and granting as few deductions, exemptions and credits as
possible. This "broad base, low rate" approach is the antithesis of most efforts
by state economic development departments who specialize in designing "packages"
of short-term tax abatements, exemptions, and other give-aways for prospective
employers who have announced that they would consider relocating. Those packages
routinely include such large state and local exemptions that resident businesses
must pay higher taxes to make up for the lost revenue.

New York is ranked #50, followed by California, New Jersey, Connecticut, Ohio,
Iowa, Maryland, Minnesota, Rhode Island, North Carolina and Wisconsin.

Only one state, Utah makes the Top Ten in this ranking and the Best States for
Business by Forbes.  Otherwise they include, South Dakota, Alaska, (ranked in
Bottom Ten in Forbes) Wyoming, Nevada, Florida, Montana, New Hampshire, Delaware,
Utah and  Indiana.

I am Tim Johnson and this has been the California Business Minute.