Low Corporate Income Taxes Correspond With Higher Growth Rates – Where Does Your State Rank?
Where does your state fall in terms of corporate income taxes? The nonpartisan, nonprofit Tax Foundation has the answer.
According to a new report, the states with the top corporate rates are: Iowa (12 percent); New Jersey (11.5 percent); Pennsylvania (9.99 percent); Minnesota (9.8 percent); and Illinois (9.5 percent). The states with the lowest rates are: North Carolina (2.5 percent); North Dakota (4.31 percent); Colorado (4.63 percent); Arizona (4.90 percent); and Utah (4.95 percent). Corporate income taxes are levied in a total of 44 states, but account for only an average of just 3.38 percent of state tax collections and 2.24 percent of state general revenue.
Four states, Nevada, Ohio, Texas, and Washington, impose gross receipts taxes instead of corporate income taxes. Only two states, South Dakota and Wyoming, do not levy a corporate income or gross receipts tax.
Several states implemented corporate income tax rate changes over the past year: Connecticut, Georgia, Idaho, Mississippi, Indiana, New Hampshire, New Jersey, North Carolina, and Utah. Click here to read more and to see where your state ranks.
In a related report, the Tax Foundation noted that a 2008 Organization for Economic Cooperation and Development (OECD) study found “corporate income taxes are the most harmful form of taxation for economic growth” and that “countries with a lower corporate income tax are likely to grow faster and attract more investment and jobs than high-tax countries.”