Inversions have been in the news consistently this summer as multiple companies have looked for legal paths away from the U.S. corporate tax system. Burger King became the latest corporation to add to the list after they...
- The Tax Policy Blog
- New Hampshire Gubernatorial Candidate Highlights State Bu...
New Hampshire Gubernatorial Candidate Highlights State Business Tax Climate Index
In New Hampshire, former health commissioner John Stephen yesterday announced his candidacy for governor. In his announcement speech, he stated his opposition to the state's recent extension of the corporate income tax to limited liability companies (LLCs).
At the risk of oversimplifying, LLCs are partnerships that enjoy liability protection, and their income is typically taxed as part of the individual income tax. New Hampshire's action is a way to tax individual income while professing that they don't have an individual income tax.
Stephen said the foundation ranked New Hampshire as the last state in the nation in business tax climate. A report on the foundation's website ranks New Hampshire as seventh-best in that category.
Greg Moore, a spokesman for Stephen, said the candidate misspoke about New Hampshire's business climate yesterday. He said Stephen was referring to the state's corporate tax index rate, which the Tax Foundation ranks as last in the country. The foundation combines that score with other state tax rankings in putting New Hampshire among the top 10 states in overall business tax climate.
Correct. The State Business Tax Climate Index has an overall rank, and five subranks for corporate taxes, individual income taxes, sales taxes, property taxes, and unemployment insurance taxes. While New Hampshire has the 7th best business tax climate overall, its corporate subindex is 50th, or worst in the country, primarily due to its terrible corporate tax base.
More on New Hampshire here.
More on state tax policy here.
Subscribe to the Tax Foundation Newsletter
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.