The good news is we aren’t the worst state in the country for taxes.
We’re only the 45th worst one out of 50.
The Iowa Society of Certified Public Accountants reported in its recent bulletin the Tax Foundation’s annual ‘State of Business Tax Climate’ report for 2008.
The Tax Foundation has done the analysis of tax rates for all 50 states since 2003 figuring how each state’s tax affects business to determine the tax friendliness for business in each state.
The report allows lawmakers to look at the rankings to determine how tax-competitive their state is when compared to the nation or regionally.
Businesses looking to expand also keep an eye on the rankings to help them make decisions on where they want to expand existing facilities or locate new ones.
The areas examined and weighted by the Tax Foundation include the tax categories that concern businesses the most – corporate taxes, sales tax, unemployment tax, property tax and individual income tax.
Iowa ranked in the bottom ten every year of the study since 2003.
We would hope our legislators and governor would examine this report and finally get serious about making Iowa a business-friendly state from a tax standpoint.
This will encourage businesses to grow jobs, expand operations and attract new businesses more than anything the Legislature could do.