In Case You Missed It: TF in Boston Herald
October 17, 2007
Today’s Boston Herald features an op-ed by Tax Foundation economist Curtis Dubay. In his piece, Curtis tackles the Bay State’s long-enduring “Taxachussetts” label. He points to Massachusetts’ low ranking in the 2008 State Business Tax Climate Index as one reason the label has lived on.
In his column, Curtis points out the facts:
Massachusetts has the fourth highest corporate income tax rate, 9.5 percent. Add that to the federal rate of 35 percent, and Bay State businesses pay a higher corporate tax rate than in any other developed nation. It’s 36.1 percent in Canada, 34.4 percent in France, 30 percent in Britain and 28 percent in Sweden.
The Massachusetts example serves to further underscore the importance of taxation to a state’s competitiveness. Curtis similarly makes this point in his piece on Rhode Island’s business climate. He clearly demonstrates the correlation between high taxes and poor economic outcomes. In the Rhode Island example, their dead last SBTCI ranking fits right in line with bottom-of-the-barrel rankings in job creation, population growth, and income growth.