Last week, S.2320, a bill that would create Universal Savings Accounts in the federal tax code, was referred to the Senate Finance Committee. The bill, sponsored by Senator Jeff Flake and Representative Dave Brat, would...
- Hartford Business Journal quotes Scott Drenkard on Connec...
Hartford Business Journal quotes Scott Drenkard on Connecticut's tax climate
Despite the highest tax increase in the state's history two years ago, Connecticut's business tax climate ranked 40th out of the 50 states for the third straight year, mostly because other states also increased taxes, The Waterbury Republican-American reports, citing a new study.
The 2013 State Business Tax Climate Index, released Tuesday by the nonprofit Tax Foundation in Washington, D.C., ranked Connecticut just above the 10 states with the worst tax climates, Rep-Am.com reports.
While there was no change at all among the Top 10 states -- led by Wyoming, South Dakota and Nevada, which have been ranked 1, 2 and 3, respectively, for the past three years -- there was a significant change at the bottom. In the 2011 and 2012 rankings, New Jersey was dead last; in the 2013 rankings, New York is now ranked 50th, while New Jersey is 49th. Vermont, ranked 47th, and Rhode Island, 46th, also remained in the bottom 10.
New York fell to the bottom despite its relatively good corporate income tax ranking, 23rd, primarily because of high individual income, property and unemployment insurance taxes, said Scott Drenkard, economist and author of the index. New York ranked 50th in the individual income tax, 45th in both property and unemployment insurance taxes, and 38th in sales tax.
"New Jersey and New York are sparring for the bottom spot," said Scott Drenkard, economist and author of the index. "New Jersey Gov. (Chris) Christie vowed his state's ranking would improve, and it did, but that's actually because New York's score dropped. ... If New Jersey had an enacted (a proposed) millionaires tax, it would have been 50th."
Connecticut, meanwhile, once again ranked 50th in property tax, 35th in corporate income tax again, 31st in both the individual income tax and the unemployment insurance tax, and 30th in sales tax.
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