October 17, 2017

CT ranks 44th in U.S. tax climate ranking

The Tax Foundation
The Tax Foundation

Connecticut has dropped a rung on the latest business tax climate ladder, according to an assessment from the conservative Tax Foundation.

Connecticut ranks 44th in the country in the foundation's 2018 State Business Tax Climate Index, down from 43rd a year ago.

The annual report measures how well each state's tax code is structured, analyzing more than 100 tax variables in five tax categories: corporate, individual income, sales, property and unemployment insurance.

Overall, Wyoming again ranked first, followed by South Dakota and Alaska. California, New York and New Jersey ranked 48th, 49th, and 50th respectively.

With first place as the best rank and 50th as the worst, Connecticut's best showing is in the unemployment insurance tax structure, where it is ranked 19th, followed by sales tax structure (27th) and corporate tax structure (31st). The state's individual income tax structure ranks 37th with property tax structure coming in at 49th.

"Our Index shows how thoughtful reforms can improve taxes in a way that benefits all taxpayers," said Tax Foundation Director of State Projects Scott Drenkard. "As federal lawmakers look to simplify the tax code and remove barriers to business investment, several states have already shown how tax reform could make the U.S. more competitive."

States are penalized for overly complex, burdensome and economically harmful tax codes.

Transparent and neutral tax codes that do not distort business decisions get states higher rankings.

Free E-Newsletters

Sign up now for our daily and weekly
e-newsletters! Click Here

Today's Poll Is bankruptcy the smartest option for the city of Hartford?<>
Most Popular on Facebook
Copyright 2017 New England Business Media