Wednesday, February 01, 2012
by Brett Narloch
The non-partisan Tax Foundation released its 2012 State Business Tax Climate Index. It is released each year to “enable business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare.”
North Dakota’s ranking this year is 29th overall. The two areas that brought down our ranking are corporate tax rates (35th) and unemployment tax rates (31st).
It’s worth noting that South Dakota (2nd) and Montana (8th) have a much more favorable tax climate than North Dakota, while Minnesota’s (45th) is much, much worse.
What is hard for me to understand is that North Dakota continues to have a worse-than-average tax climate, record revenue, a Republican-controlled legislature, and a Republican governor. Tax policy isn't the only measure by which businesses make decisions, but it's certainly a big one.
We believe that North Dakota has a historic opportunity to dramatically reduce the tax burden on everyone in North Dakota. We shouldn’t be debating tax rates as much as we should be debating tax elimination.