Vance Ginn Economics
  • Home
  • About
  • CV
  • Media
  • Blog/Podcast
  • Show/Speeches
  • Publications
  • Teaching
    • ECON 2301-Princ of Macro
    • ECON 2302-Princ of Micro
    • ECON 3352-Energy Eco
  • Home
  • About
  • CV
  • Media
  • Blog/Podcast
  • Show/Speeches
  • Publications
  • Teaching
    • ECON 2301-Princ of Macro
    • ECON 2302-Princ of Micro
    • ECON 3352-Energy Eco

TEXAS’ BUSINESS TAX CLIMATE RANKS 10TH BEST

12/15/2015

1 Comment

 
Picture
By Dr. Vance Ginn and Nozim Ishankulov 
The Tax Foundation recently released the 2016 State Business Tax Climate Index report that estimates relative state tax burdens nationwide. The authors define the Index as the following:
​
“The Index deals with such questions by comparing the states on over 100 different variables in the five major areas of taxation (corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and property taxes) and then adding the results up to yield a final, overall ranking. This approach rewards states on particularly strong aspects of their tax systems (or penalizes them on particularly weak aspects), while also measuring the general competitiveness of their overall tax systems. The result is a score that can be compared to other states’ scores.”


According to the report, Texas tax system ranks as the 10th best for doing business. Despite substantial burdens of property (34th), sales (37th), and corporate (41st) taxes, the absence of an individual income tax (6th) and a low unemployment insurance tax (15th) contribute to the Lone Star State’s favorable ranking, as shown in Chart 1.

Chart 1: Texas has the 10th best business tax climate
Source: Tax Foundation

Although there are no corporate income taxes in Texas, the authors account for the existence of a “complicated gross receipts tax, styled the Margin Tax” that reduces businesses ability to reach their full potential. This onerous tax is a complicated tax to file contributing to a high cost of compliance along with the amount paid, making it a complete failure of good public policy.


The Tax Foundation estimates in another report that if the margin tax was eliminated Texas’ business climate would rank 3rd best making it more competitive and advancing more job growth and economic prosperity. This is supported by a Texas Public Policy Foundation report that finds Texas forgoes billions of dollars in new real personal income and hundreds of thousands of new private sector jobs during the next five years if it’s not eliminated.


Texas has been the bastion of free enterprise and economic opportunity for almost two decades. To advance the Texas model and improve its competitive advantage by having the best possible business tax climate, the Tax Foundation’s report provides evidence that the margin tax has to go. If it did so, Texas would join only Wyoming and South Dakota, which are the top two ranked states, as the only states without personal income and business taxes, improving the outlook for all Texans.

http://www.texaspolicy.com/blog/detail/texas-business-tax-climate-ranks-10thbest 

1 Comment
spray on truck bed liner link
1/26/2018 01:07:34 am


This is very educational content and written well for a change. It's nice to see that some people still understand how to write a quality post.!

Reply



Leave a Reply.

    Vance Ginn, Ph.D.
    Chief Economist
    ​TPPF
    ​#LetPeopleProsper

    Vance Ginn, Ph.D., is founder and president of Ginn Economic Consulting, LLC. He is chief economist at Pelican Institute for Public Policy and senior fellow at Young Americans for Liberty and other institutions. He previously served as the associate director for economic policy of the White House’s Office of Management and Budget, 2019-20.

    Follow him on Twitter: @vanceginn

    View my profile on LinkedIn

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    January 2015
    November 2013
    September 2013
    May 2013
    February 2013
    August 2012
    July 2012
    January 2012
    May 2011
    April 2011

    Categories

    All
    Biden
    Book Reviews
    Budgets
    Capitalism
    Carbon Tax
    Commentary
    Congress
    COVID
    Debt
    Economic Freedom
    Economic Prosperity
    Economy
    Education
    Energy Markets
    Fed
    Free Trade
    Ginn Economic Brief
    Healthcare
    Housing
    Immigration
    Inflation
    Interview
    Jobs Report
    Let People Prosper
    Licensing
    Louisiana
    Margin Tax
    Medicaid
    Minimum Wage
    News
    Occupational Licensing
    Opportunity Project
    Pensions
    Podcast
    Poverty
    Property Taxes
    RAB
    Regulation
    Rules
    School Choice
    Socialism
    Spending Limits
    Taxes
    Tax Foundation
    Testimony
    Texas
    This Week's Economy
    Transparency
    Video
    White House

    RSS Feed

Proudly powered by Weebly