11-19-15 – Tax Foundation Ranks Vermont 46th for Business Climate

by Rob Roper

The Tax Foundation is out with its annual State Business Tax Climate Index. “This year’s least competitive states include: 
New Jersey (#50) New York (#49), California (#48), Minnesota (#47), Vermont (#46), Rhode Island (#45), Connecticut (#44), Wisconsin (#43), Ohio (#42), and Maryland (#41).” Yes, there’s Vermont again in the bottom ten, a recurring theme for these sorts of things. Vermont has been stuck at 46th on this scale since 2013.

Screen Shot 2015-11-19 at 11.55.10 AM

According to the report, “The states in the bottom 10 tend to have a number of afflictions in common: complex, non- neutral taxes with comparatively high rates.”

The Tax Foundation takes into account 100 different variables in determining its overall rankings, but breaks these down into 5 main categories. Therefore, Vermont’s overall ranking of #46 is comprised of separate rankings in Corporate Tax (#44), Individual Income Tax (#44), Sales Tax (#15), Unemployment Insurance Tax (#17) , Property Tax (#48).

It is worth noting how Vermont’s neighbors performed. New Hampshire made the Top 10 with an impressive #7. New York, as noted above, scored worse than Vermont at #49, and Massachusetts settled in the middle of the pack at #25.

States can change these rankings dramatically if the political will exists to do so. North Carolina, for example, two years ago jumped from #44 to #15 after passing a number of tax reform measures, including lowering their corporate income tax rate and individual income tax rates.

In other words, it doesn’t need to be this way in Vermont.

{ 5 comments… read them below or add one }

Ralph Colin November 20, 2015 at 11:02 pm

Only those who are either incredibly foolish or naïve will expect Vermont to improve in these ratings at any time soon. Neither the governor nor those who lead the legislature seem to have any inclinations or desire to address any of the serious problems we face head on. In fact, things will probably get a lot worse before any measures are taken to improve them. Woe be to us all.

Reply

Weiland A. Ross November 21, 2015 at 1:53 pm

Not to worry—-the legislative loons seem hell bent on legalizing marijuana ASAP
and this will solve all our problems. The $70,000,000 in new tax revenues will more than cover our endemic budget short-falls. The newly happy work force will
definitely appeal to prospective investors who might look forward to dealing with a
moderately stoned work force that will be less demanding for pay and benefits.
Business taxes will be lowered because of the above $70,000,000 fantasy. Vermont will zoom to the top of the desirability listings riding on a haze of maple flavored weed smoke. As soon as they figure out how to add pot to the artisanal
cheese our food cupboards will become tourist attractions. Research indicates
that one out of three loons who believe this nonsense are as stupid as the other two.

Reply

Mark Donka November 20, 2015 at 11:10 pm

If the Liberal legislature has its way it will enact a carbon tax that will make us 50th. They wonder why all the young people are moving out. No jobs plain and simple.. We must change this downward spiral in 2016. Remember this when you vote.

Reply

Peg C November 21, 2015 at 6:52 pm

I clearly remember Shumlin’s answer to my question for him to explain his 0 (zero) rating by the NFIB. He said if he got a zero, than he was doing his job. . . (VT Digger should have the article in archives). The communist progressives don’t know that 0 is not a good score. Hmmmm, must be common core math.

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jim bulmer November 21, 2015 at 2:25 pm

Once again, Vermont ranks near the bottom. One would wonder if the Gov., Shap or John, or for that matter, any one in the super majority in either body would at least BEGIN to check if SOMETHING is amiss. Won’t ever happen. They’re too preoccupied with single payer, carbon tax, wind mills, solar farms, global warming, same sex marriage, raising the cost of trash collection, eliminating school choise, and I’m quite confident come January, they’ll come up with more of the same. Vermonters, WAKE UP and through these well meaning, inept clowns OUT!!!!

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