The House GOP recently released a tax reform proposal (click here to see the full details). Among other changes, it would convert the current corporate income tax into what is called a “destination-based cash flow tax.”...
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- Two Dozen Companies Announce California Departures, Citin...
Two Dozen Companies Announce California Departures, Citing Higher Taxes
From KCRA Sacramento:
KCRA 3 has learned that 24 chief executives are flying to Phoenix, Ariz., to explore the land of lower taxes and a much friendlier business environment.
“We can deliver the mayors, we can deliver the CEOs, we can deliver the legislative support,” said Barry Broome, president of the Greater Phoenix Economic Council.
Broome launched his campaign to recruit California CEOs, one day after voters in the Golden State approved Prop 30 last November, and the campaign is working.
Broome said of those, 24 CEOs already have committed to leaving California.
California is a high tax state. They are fourth highest in state-local tax burden as a percentage of state income. The sales tax is the highest state rate in the country, and numerous county rates keep them in the top ten of state-local combined rates. Their individual income tax top rate of 13.3 percent is the highest in the country, with taxpayers paying high rates at even modest income levels. The corporate income tax is one of the highest in the country. Even the gas tax is the third highest in the country. Only on property taxes is California "low": 15th highest in collections per capita.
The Tax Foundation's annual State Business Tax Climate Index evaluates tax structures for business-friendliness, and the 2013 edition ranked California 48th, or third worst. The individual income tax ranked second to last, corporate income tax ranked 45th, and sales tax ranked 40th. (Property tax structure was a bright spot, ranking 17th best in the country.)
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The Tax Policy Blog is the official blog 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.
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