Where does the State of Delaware rank in the 2017 State Business Tax Climate Index?
Delaware’s performance was sub-optimal in comparison to last year’s. The First State slid five whole places from a rank of 14th on the 2016 list all the way to 19th place in the 2017 State Business Tax Climate Index.
The Tax Foundation, a non-profit Washington D.C.-based independent research organization, was happy to share the methodology of the report. Officials said the 2017 State Business Tax Climate Index compares states on more than 100 variables in the five major areas of taxation:
The results are then tallied, yielding an overall ranking.
I bet right now you are wondering to yourself, “What is the breakdown for the State of Delaware’s 2017 Business Tax Climate?“.
Among the five major components, Delaware fared well on sales tax (#1), unemployment insurance tax (#3), and property tax (#20). However, the state’s individual income tax came in at #34 and The First State’s corporate tax ranking was dead last at #50.
Don’t take our word for it- you can download the full report of the 2017 State Index and see for yourself:
2017 State Business Tax Climate Index (PDF)
For those of you who prefer to just cut to the chase and learn the implications of the Delaware’s Business Tax rankings, we are happy to oblige.
The report noted that tax policy, as it affects businesses, can have profound implications for employment. “Anecdotes about the impact of state tax systems on business investment are plentiful. … In 2010, Northrup Grumman chose to move its headquarters to Virginia over Maryland, citing the better business tax climate. In 2015, General Electric and Aetna threatened to decamp from Connecticut if the governor signed a budget that increased corporate tax burdens, and General Electric actually did so. Anecdotes such as these reinforce what we know from economic theory: taxes matter to businesses, and those places with the most competitive tax systems will reap the benefits of business-friendly tax climates.”
Here are some more quick facts from this year’s report:
Which State ranked first in the 2017 State Business Tax Climate Index?
Wyoming has the top state business tax climate ranking.
Which State came in last in the 2017 State Business Tax Climate Index?
New Jersey is ranked 50th overall in state business tax climate.
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