Showing posts with label state business tax climate index. Show all posts
Showing posts with label state business tax climate index. Show all posts

Monday, January 30, 2012

Ohio 39th in State Business Tax Climate Index, worse than neighboring states

The Tax Foundation has released its 2012 State Business Tax Climate Index and Ohio finds itself still in the bottom at 39th in the nation, unchanged from last year.

The 10 best states are:

1. Wyoming
2. South Dakota
3. Nevada
4. Alaska
5. Florida
6. New Hampshire
7. Washington
8. Montana
9. Texas
10. Utah

They earn these positions primarily because they don't impose some or several of the taxes calculated.

The 10 worse states are:

41. Iowa

42. Maryland
43. Wisconsin
44. North Carolina
45. Minnesota
46. Rhode Island
47. Vermont
48. California
49. New York
50. New Jersey

Ohio ranked:

* 22 in corporate tax rate

* 42 in individual income tax

* 29 in sales tax

* 10 in unemployment insurance tax

* 33 in property tax.

Michigan, our neighbor to the north, ranked 18, up from 19 in 2011. While their corporate tax rank is 49 (the second worse in the nation) and their unemployment insurance tax rank is 44, they rank 11 in individual income tax, 7 in sales tax
and 30 in property tax, moving them ahead of Ohio in the overall rankings.

Indiana, which is expected to be a right-to-work state upon the governor's signature of recently-passed legislation, is ranked 11, also unchanged from 2011. Pennsylvania is 19, up from 21 in 2011 and Kentucky is 27, up from a 25 rank last year.

Sadly, all our neighbors rank better than we do in business taxation and they are our competition for jobs.

For more information on the rankings and methodology, you can read the entire report here.

Monday, October 22, 2007

Another "this is NOT business friendly" post

In an earlier post, I mentioned how the 2008 State Business Tax Climate Index ranked Ohio in the bottom five of "business friendly" states. Curtis Dubay, a co-author of the study said, "States need to constantly be on the lookout for ways to improve their business tax climates."

Unfortunately, it seems that such advice is falling on deaf ears in Ohio as the "Sick Days Ohio" group would rather focus on creating a 'family-friendly' state.

Sick Days Ohio is the website for Ohioans for Healthy Families who identifies themselves as:

"Ohioans for Healthy Families is a growing statewide coalition of citizens and organizations who are leading the effort to make Ohio the most family-friendly state in America.

Working together, religious, community, labor, health care, professional and family groups are advocating for Ohio employees to earn paid sick days so they can take care of themselves or their family members when illness hits.

The partner groups and leaders who make up Ohioans for Healthy Families come from diverse backgrounds and different parts of the state, but they share one thing in common: They value Ohio families and believe our citizens shouldn't have to choose between taking care of a sick child or spouse and their paycheck."

They have proposed and are supporting a new law, the Ohio Healthy Families Act, that would require employers with 25 or more employees to provide up to 7 paid sick days each year. They state that the Act, "would ensure middle-class workers — the backbone of Ohio's economy — have the opportunity to earn paid sick days." Of course, the sick days would actually apply to ALL employees, not just middle-class workers, and the definition of 'full-time' in order to qualify for the 7 paid days is 30 hours/week. Oh - and having the state mandate, though law, those days does NOT equate to "earning" them.

The group has gathered around 140,000 signatures but plans to continue to gather more before submitting the proposal to the legislature in January, according to campaign manager Brian Dunn. The issue needs at least 120,683 valid signatures. After submission of the petitions, the legislature has four months to enact the bill. If it fails to do so, the Ohioans for Healthy Families coalition has 90 days to collect the same amount of additional valid signatures to place the measure on the fall 2008 ballot for a vote by Ohioans.

Some interesting components of the proposed Act:

* people who work part-time would get pro-rated days

* the sick leave would accumulate monthly and accrual would start immediately, even if a new employee might not be able to access said days until after being employed 90 days (probationary period)

* you could carry over days, but employers wouldn't be required to permit the accumulation of more than 7 per year (meaning employers could allow them to accumulate to whatever level they choose above the 7 days)

* you can accumulate and use the sick time in hourly increments

* an employer may only require an employee to provide certification from a health professional if the absence covers more than three consecutive work days, and the employee would then have to provide the employer with such certification within thirty days

* employers could be fined for not properly posting the notice of this law

* employers may not eliminate or reduce existing leave policies to comply with the provisions of the proposed law and should not be discouraged from providing a more generous leave policy

* unions could still bargain for more leave

* employers cannot use paid sick leave taken pursuant to this Act as a negative factor in an employment action, such as hiring, promotion, or a disciplinary action; or count the use of paid sick leave under a no-fault attendance policy

Wow - and those are just the highlights that do not include the record-keeping and auditing requirements. I wonder if anyone's bothered to calculate the cost such a mandate would impose upon companies.

This is NOT a business-friendly act - though it certainly sounds good on the surface. But while it may appear to be family-friendly in the short term, it has significant potential for long-term negative consequences.

I've got news for you, Ohioans for Healthy Families: If you want a family-friendly state, you need a state that first has JOBS for those families - not laws that drive businesses - and eventually families - away.

Friday, October 12, 2007

Not good news for Ohio

The newly released 2008 State Business Tax Climate Index ranks how "business friendly" the 50 state tax systems are, providing a roadmap for state lawmakers concerned with keeping their states tax-competitive, says the Tax Foundation.

According to the Foundation:

* The five most business friendly states are Wyoming, South Dakota, Nevada, Alaska and Florida.
* Next on the list are Montana, New Hampshire, Texas, Delaware and Oregon.
* At the opposite end of the spectrum are Rhode Island, New Jersey, New York, California and Ohio, the least business friendly states.
* Following those are Iowa, Vermont, Nebraska, Minnesota and Maine.

"There's no question that states are competing with one another for companies, jobs and people," said study co-author Curtis Dubay. "Taxes matter to businesses and the states with better business tax climates will reap the rewards."

Dubay added, "States need to constantly be on the lookout for ways to improve their business tax climates. If they're standing still, they're losing ground to states actively improving their climates."

Source: "Which States Are Best for Business? The 2008 State Business Tax Climate Index," Tax Foundation, October 10, 2007.
Google Analytics Alternative