SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
Those Texas taxes

Thursday, Jul 10, 2014

* From the Washington Monthly

(A)ccording to a joint study by the accounting firm Ernst & Young and the Council on State Taxation, in fiscal year 2012 state and local business taxes in California came to 4.5 percent of private-sector gross state product. This compares with a 4.8 percent average for all fifty states—and a rate of 5.2 percent in Texas. With the exception of New York, every major state in the country, including New Jersey, Massachusetts, Pennsylvania, Ohio, Michigan, Indiana, Illinois, Wisconsin, and Minnesota, has a lower total effective business tax rate than Texas. [Some emphasis added.]

- Posted by Rich Miller        

  1. - BigBob - Thursday, Jul 10, 14 @ 12:43 pm:

    CNBC website has an article about job growth not following state tax cutting. Wisconsin job growth trails all neighboring states, including Illinois.

  2. - Dee Lay - Thursday, Jul 10, 14 @ 12:43 pm:

    Reality has a well-known liberal bias.

  3. - wordslinger - Thursday, Jul 10, 14 @ 12:52 pm:

    How dare you, Miller, cast factual aspersions upon The Promised Land?

  4. - Anonymous - Thursday, Jul 10, 14 @ 12:54 pm:

    Everything really is bigger there.

  5. - Jimmy - Thursday, Jul 10, 14 @ 12:55 pm:

    I’m sure the Texans will blame illegal immigrants for their high business taxes.

  6. - 47th Ward - Thursday, Jul 10, 14 @ 12:56 pm:

    Everything is bigger in Texas, including the egos and the lies.

  7. - OneMan - Thursday, Jul 10, 14 @ 12:58 pm:


    That isn’t what the federal government says…

    Wisconsin 6.3% job growth since Feb 2010, Illinois 5.1%

    The also are doing better in initial jobless claims rate over the last 12 months.



  8. - Concerned - Thursday, Jul 10, 14 @ 1:03 pm:

    Sshhhhhh, don’t tell Gov. Perry. He is just starting to feel smarter with his glasses and if you confuse him with facts, he’ll say he’ll cut three things: taxes, government services and, oops, I forgot the third thing,

  9. - walker - Thursday, Jul 10, 14 @ 1:04 pm:

    Perception is reality, even for business owners. Others do a better job creating a “business-friendly” environment. Indiana’s leaders have been masters of that, led by their big business community as cheerleaders for the state. Of course in some area we do lag. Just not as much as perceived in taxation.

  10. - lake county democrat - Thursday, Jul 10, 14 @ 1:19 pm:

    Quinn’s Tribune editorial had it right - lots of factors go into where businesses want to be. North Carolina’s boom, for example, is party attributable to a consistent and aggressive effort to improve their school system. But I’m not ready to say state taxes have no effect - Toyota didn’t relocate it’s California opperations to Texas for nothing and I suspect NY has some evidence that their program which gives relocating businesses big tax breaks is effective.

  11. - Modest proposal - Thursday, Jul 10, 14 @ 1:26 pm:

    I don’t think “taxes” are the problem in Illinois. The problem is the regulations. The cost of business is high, we have high unemployment insurance, high workers comp, the accessibility code, we are not a right to work state and numerous other barriers nickling and dining businesses. Our taxes have always been rather low, but that’s in combination with regulation. If you bring taxes up, then regulation has to come down to bring the state in balance. At least that’s my opinion.

  12. - Anon - Thursday, Jul 10, 14 @ 1:29 pm:

    How can a high business tax rate possibly be compatible with robust job growth? It is contrary to conservative theory. While IL having a lower effective rate than TX is contrary to GOP fundamental belief.

  13. - Anonymous - Thursday, Jul 10, 14 @ 1:30 pm:

    Oneman, jobs does not really speak much about economic success or health. median household income is a much better marker. a State of minimium wage families is a burden, not an aid to a State, even if you have 100% employement.

    Wisconsin median household income 2012 = $51,059 1 year change -0.76%

    US median household income 2012 $51,371 1 year change -0.36%

    Illinois median Household income 2012 $55,137 1 year change +1.46%

    So the earning and spending power of a wisconsin family is below the US household median income, and has gone down at a greater rate then the US median income durin the start of the economic recovery.

    In Illinois the median houehold income is above the national average, and increased from 2011 - 2012 while nationaly median income declined.

    overall that means workers are better off in illinois as they are better paid. This transalets to greater economic activity and stability.

    Wisoncsin may be adding jobs, but the quality of life, earning power etc are going down. This suggest they are adding poverty level jobs. if the goal is to reach poverty first, Wisconsin is ahead.

  14. - Ghost - Thursday, Jul 10, 14 @ 1:31 pm:

    oops forgot my handle for the above

  15. - better days - Thursday, Jul 10, 14 @ 1:35 pm:

    Illinois has the worst credit rating of all 50 states… 2nd most people leaving state.. 4th highest workman comp .. lowest job creation last year among 7 Mid west States..Illinois still broke after collecting a $$27 BILLION new TAX increase last 3 years

  16. - Arizona Bob - Thursday, Jul 10, 14 @ 1:36 pm:

    I read the article, and I guess Rich just wanted to accent the negative perceptions about Texas.

    For example, Dems like to claim that Texas is creating only “low income jobs”, but the study debunks that myth. 45% of new Texas jobs since 2001 are in the top half of national salaries, and 25.6% job growth in the upper middle quarter of salaries occured in Texas, while new jobs in that category DECREASED by 4.1% in the rest of the country.

    An obvious bias was exposed in the article when the author criticized Texas for spending the 41st least amount in K-12 education, yet chose not to mention that national test scores from NAEP show that despite that “low” spending Texas students achieve at about average for the nation, despite having 16% low income students.

    Apparently spending effectively isn’t as important as spending large to the author.

    Finally, the article was curiously short in what it considered “business taxes”. Is workman’s comp a “tax” included in the study? How about “user fees” like the ones that drove the trucking industry out of Illinois? What about taxes on oil and gas production? Those tend to be higher than average business taxes, so is it a problem that the industry is carrying a bigger share of the state and local tax burden?

    Notice that they quote the “effective” tax burden. Is that an indication that tax rates are fairly enforced throughout businesses in Texas, unlike crony capitalist states like Illinois that give away huge tax deductions and breaks to the politically well connected?

    Bias aside, there WAS good info in the article. I suggest it as a good read.

  17. - A guy... - Thursday, Jul 10, 14 @ 1:38 pm:

    “has a lower total effective business tax rate than Texas.”

    These caveats will continue to get lost in the fog. People just won’t dig this deep for analysis.

  18. - Arizona Bob - Thursday, Jul 10, 14 @ 1:40 pm:

    =In Illinois the median houehold income is above the national average, and increased from 2011 - 2012 while nationaly median income declined.overall that means workers are better off in illinois as they are better paid. This transalets to greater economic activity and stability.=

    Not necessarily true, anon. If a state loses massive numbers of lower half income jobs, the average goes up. It seems in Illinois our low income, low skilled workers have been hurt the most by our driving businesses away from Illinois through government mismanagement and corruption.

    Unlike you, I don’t think making low income workers unemployed and going on the dole to be a good thing. Why do you?

  19. - Anon - Thursday, Jul 10, 14 @ 1:48 pm:

    So tired of people crapping on IL (which is mostly done for politcal reasons). Yes we have problems, but then again so does everyone else. I have been to some of these so called “Edens” like Texas. Needless to say I did not see paradise on earth. Don’t like IL? Work on improving it or move.

  20. - walker - Thursday, Jul 10, 14 @ 1:48 pm:

    To be fair, personal income tax rates are more important than business taxes, for a high proportion of small business owners.

    Very hard to factor those in when comparing burdens on businesses-plus-owners.

    (Sometimes a business is the same as the person who owns it, for some purposes — or so SCOTUS believes.)

  21. - Dan S - Thursday, Jul 10, 14 @ 1:49 pm:

    Total Tax burden Ill 10.2%.
    Total tax burden Tx 7.5%.

    Here is a secret, businesses don’t pay taxes, they shift the cost to the customer.

  22. - Anonymous - Thursday, Jul 10, 14 @ 2:00 pm:

    ===The problem is the regulations. The cost of business is high, we have high unemployment insurance, high workers comp, the accessibility code, we are not a right to work state and numerous other barriers nickling and dining businesses===

    Yea, those regulations should be relaxed. Just look at Indiana. I am sure ArcelorMittal is so worried about those pesky regulations, that only fined them $7000, when one of their workers was boiled to death.
    Lets not forget that most of these regulations are put into place to protect workers and the public. And the unions are a main force behind getting them passed. Putting business first is a nice catch phrase but I think putting lives first out weighs that.

    “ArcelorMittal fined over Indiana worker’s death”

  23. - walker - Thursday, Jul 10, 14 @ 2:02 pm:

    Dans S: Here’s a secret: not always, not entirely. Businesses deal with higher costs in all kinds of different ways. Some will likely impact their prices to some extent.

    Sorry, but real world economics are never so simple as we sometimes like to believe and say. No disrespect meant. I do it too.

  24. - Grandson of Man - Thursday, Jul 10, 14 @ 2:02 pm:

    Yesterday I was saying that I look at states holistically, and Texas doesn’t measure up to many other states in ways I and others find important. It’s not just about jobs numbers.

    Here is another Obamacare study (linked in article) that just came out, showing that the number of uninsured dropped 5%, but there were significant drops in the number of uninsured in Medicare expansion states. Other states like Texas show very little dropoff in the number of uninsured.

    In the article, Texas is ranked at or near the bottom again by having a high number of uninsured.

    Again, Texas has reparative therapy and repeal of the Voting Rights Act in its GOP platform. Ugh!

  25. - Illiana - Thursday, Jul 10, 14 @ 2:03 pm:

    BigBob & OneMan,

    I think the main difference between your two stats are as follows:

    The sources that claim Wisconsin is creating fewer jobs than Illinois start the clock around when Walker became governor in January 2011. OneMan’s link started the clock in February 2010.


  26. - Grandson of Man - Thursday, Jul 10, 14 @ 2:09 pm:

    “Other states like Texas show very little dropoff in the number of uninsured.”

    Correction: Texas did have a significant drop in the number of uninsured, but it could be from the federal marketplace. It’s still a high number compared with other states in the article.

    States who did expand Medicaid covered a significantly higher number of people than states who didn’t. This is a no-brainer, but still, more people are getting insurance thanks to Medicaid expansion. Many of those folks work and need coverage for themselves and their families. Many have illnesses.

  27. - olddog - Thursday, Jul 10, 14 @ 2:19 pm:

    If we’re going to compare Illinois to Texas — or Wisconsin — we may as well compare it to the Grand Duchy of Luxembourg. Different political cultures.

    Speaking of Texas, Rolling Stone has an interesting story …

    I took it with a grain of salt, but it was an interesting read.

  28. - oz - Thursday, Jul 10, 14 @ 2:28 pm:

    So this proves that Chicago and Illinois tax break impunity to corporations in return for the promise of jobs DOES NOT WORK!

    Plain and simple.

  29. - Illiana - Thursday, Jul 10, 14 @ 2:30 pm:

    Realistically, the state has such high debts that have to be paid, there probably isn’t much that can be done on the tax side. It would make more sense for people to look into what regulatory environment changes can do to help Illinois’s economy.

  30. - CirularFiringSquad - Thursday, Jul 10, 14 @ 2:38 pm:

    Texas also has no fire code which helps the random development of those chemical plants that go boom.

  31. - Jimbo - Thursday, Jul 10, 14 @ 2:53 pm:

    OneMan, your numbers do not reference the same period as Bobs. Not to mention, we don’t know if his numbers include public employees as well, or how they count part time employment. Statistics can demonstrate nearly anything you like. Also, not sure when Walker instituted his probusiness tax schemes, but I don’t think it corresponds exactly to your numbers. You’re not wrong. I’m just saying that just because you are right, doesn’t mean Bob is wrong.

  32. - Precinct Captain - Thursday, Jul 10, 14 @ 4:13 pm:

    ==- Modest proposal - Thursday, Jul 10, 14 @ 1:26 pm:==

    Whether there are too many or too few regulations, how regulations are imposed is a critical factor as well. Imagine being able to go to a “Business Regulations Office” and get things done in a day or two instead of many days going to a byzantine number of offices for a dizzying array of permits. The smoke filled room image of Chicago government does not help who don’t know how to play the game.

  33. - Anyone Rememer - Thursday, Jul 10, 14 @ 4:19 pm:

    Dan S.

    =Here is a secret, businesses don’t pay taxes, they shift the cost to the customer.=

    Even Milton Friedman didn’t believe that one. He said to get customers some businesses would pass on less than 100% of the increased costs.

  34. - Jimbo - Thursday, Jul 10, 14 @ 4:22 pm:

    I’m curious about this Texas miracle. What I’ve read is that, as a percentage, job growth in California is the highest this and Texas ranks 8th. Still impressive, but California doesn’t exactly have a low tax business friendly image.

  35. - Jimbo - Thursday, Jul 10, 14 @ 4:30 pm:

    Nevermind. That study looked at the percentage change in the employment rate. Texas has an influx of people that are being employed, so while many more jobs are being added, the rate of employment isn’t necessarily rising more than a state losing residents.

  36. - Yellow Dog Democrat - Thursday, Jul 10, 14 @ 7:33 pm:


    Great analysis.

    With Respect,


Sorry, comments for this post are now closed.

* Tonight's must-read
* Tribune to put tower up for sale
* They say that like it's a bad thing
* Exelon Just Received A $1.7 Billion Rate Increase Through The Market-Based Capacity Auction
* Point taken. However...
* *** UPDATED x1 *** Byrd-Bennett indicted by the feds
* Yikes, man
* The Credit Union Difference
* SUBSCRIBERS ONLY - Kotowski bash, event list
* Question of the day
* Dimas: "There's a chance we will have to introduce the FY17 budget before we have an FY16 budget"
* Unclear on the concept
* Rhetoric vs. reality
* Supremes snub Illinois Policy Institute appeal
* Aren't we forgetting something?
* True, but...
* Things are tense all over
* Unclear on the concept
* Rep. Leitch won't run again
* SUBSCRIBERS ONLY - Supplement to today’s edition and a Golar replacement update from AlderTrack
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Visit our advertisers...







Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

* OnePlus Mini may come at India event next week
* Apple Removes Some Ad Blockers From App Store for Installing Root Certificates
* Light photography startup intros L16 Camera that can shoot 52MP images
* Weibo rumor: Xiaomi Mi 5 will be priced like the Mi 4
* LEAKED: Samsung’s new Mongoose processor gives great performance numbers
* You can now buy the InFocus M812 for $300
* iPhone 6s vs. Nikon DSLR, Android 3D Touch & more – Pocketnow Daily

* Foot issue to sideline White Sox prospect Hawkins
* After second base, it was no-go White Sox
* Scouting, player development key for White Sox
* Arbitration-eligible White Sox won't put dent in payroll
* Hawk Harrelson's reduced schedule creates opportunity for White Sox...
* Holliday, Ventura connection goes way back
* 2015 in 3 words: Sale, Abreu, inconsistency


Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005


RSS Feed 2.0
Comments RSS 2.0


* Dems warn state could go broke without budget -.....
* Democrats warn Illinois could go broke without .....
* Democrats warn Illinois could go broke without .....
* Democrats warn Illinois could go broke without .....
* Democrats warn Illinois could go broke without .....

* Democrats warn Illinois could go broke without state budget
* Tribune Media considering sale of landmarked headquarters
* EPA pushes for 'smart thermostats' as way to limit pollution
* Chicago cab driver group calls for 24-hour strike
* Indiana man chose as 1st national Pig Farmer of Year
* 2 Illinois congressmen heading to Cuba on Sunday for ag trip
* EXCHANGE: Sudzy Bath and Biscuits in Anna caters to canines
* Group says interest in Chicago Halloween parade growing
* Impact of Chicago Marathon felt from now to Sunday event
* Chicago Democrats to meet to fill seat of late Rep. Golar

* The Papers of Abraham Lincoln project still in jeopardy; memo paints discouraging picture
* Democrats say Rauner 'needs to get serious' on budget
* Democrats: Illinois could go broke without budget
* Gov. Rauner ends quarter with $19M in campaign fund
* Prosecutors say former Congressman Aaron Schock is 'grandstanding'
* State Rep. David Leitch won't seek re-election
* Rauner to Democrats: 'Time's up' in budget impasse
* Illinois panel OKs medical marijuana for 8 health conditions
* State Sen. McCarter to challenge Shimkus in Congressional primary
* Rauner increasing pressure on Democrats for budget deal

* O'Hare bonds avoid Chicago stain in city's biggest offering ever
* Tribune Media seeks to sell Trib Tower
* Trib Tower for sale
* A champion of women's issues who loves board games
* Cafe Spiaggia got a makeover. Did it need one?

* Charity raffling off Blackhawks Stanley Cup ring
* Sweet: Emanuel says House GOP needs to work through ‘some issues’
* Democrats warn Illinois could go broke without state budget
* Obama returns to Chicago on Oct. 27 for fundraising
* Aldermen complain about ‘menu’ price hikes
* Charges come at rocky time for CPS
* Patrick Kane feels ‘really good’ as he hits the road
* Viktor Svedberg to get his chance on blue line
* Aldermen vent frustrations about city’s losing battle against homelessness
* Blackhawks mailbag: Crawford, Teravainen, Dano and more

* Motorcyclist killed after hitting deer on I-94, being hit by truck
* Supporters of Woodlawn church gutted by fire start fundraising for restoration
* 1 dead, 4 wounded in separate city shootings
* Former Chicago Public Schools chief to plead guilty to bribery scheme
* NIU evacuated, classes canceled following 'bogus' bomb threats to colleges
* Police: Wrigleyville celebrations relatively calm; 9 misdemeanor arrests
* 1 treated following high CO levels at West Side apartment building
* Smart thermostat program could cut energy bills
* New judge to be assigned to second Soderquist case
* Jeb Bush makes campaign stop at Geneva home

* The Papers of Abraham Lincoln project still in jeopardy; memo paints discouraging picture
* Mike Lang: 'Racial Taboo' screening will advance local unity efforts
* Democrats say Rauner 'needs to get serious' on budget
* Bernard Schoenburg: Supreme Court refuses to hear Illinois Policy Institute appeal over press access at Statehouse
* Gov. Rauner ends quarter with $19M in campaign fund
* Prosecutors say former Congressman Aaron Schock is 'grandstanding'
* State Rep. David Leitch won't seek re-election
* George Will: Impeach the IRS director
* Eugene Robinson: Obama is right to be cautious on Syria
* Elizabeth Austin: 'Lawsuit climate' no obstacle to business success

* UPDATE: Heavy police presence at Paxton standoff
* UI Men's Basketball Media Day 2015
* Opposing viewpoint: Iowa QB C.J. Beathard
* Illini roundup: Soccer team secures tie
* Big Ten football update: Illini slip into bowl scene
* Thursday's highlights: Danville wins on, off pitch
* Richey's observations from women's hoops media day
* Volleyball team returns to Huff
* Tate: Two sides for hoops storylines
* Seymour man sentenced in connection with puppy's death

* Officials: NIU classes expected to resume Friday after bomb threat
* Officials: Bomb threat causes evacuation at NIU
* Vigil remembers slain man on 21st birthday in Elgin
* In St. Louis some fans worry; others say bring it on
* Suburban business leaders get taste of DuPage hospitality at expo

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* US Sen. Dick Durbin introduces bill to mak......
* Durbin Proposes Legislation To Lower Textb......
* Digital textbook advancements may save stu......
* Federal agents haul paperwork, computers f......

* 2 US senators seek to declare a Fil-Am his......
* Senator Kirk Supports Funding to Boost Eco......

* This Is The End...
* Rauner points to 70 Illinois Democrats supported collective bargaining changes
* Rauner points to 70 Illinois Democrats that supported collective bargaining changes
* Dixon police draw criticism over "Gotcha" crime prevention program
* Where's Weyermuller? At Wheeling Township GOP Women's 2015 Luncheon
* Police Chief McCarthy says "There's no magic solution" to ending Chicago violence
* REbarcamp gives Illinois REALTORS 10 ways to learn more from each other
* Peoria's Leitch Won't Seek Re-Election
* Get the scoop on Crosby award in Illinois REALTOR®
* Illinois Department Of Human Services Hearing On CCAP Changes

* Board’s New Rules Will Reduce Risk of Tire Fires and Disease-Carrying Mosquitos
* Illinois Hosts Inaugural Interstate Medical Licensure Compact - Aims to increase health care access through multi-state physician licensure program
* IEMA Announces Elgin Community College Attains ‘Ready to Respond Campus’ Designation - Elgin one of five Illinois campuses to receive distinction
* New Mortgage Loan Interface Increases Efficiency, Compliance
* State Fire Marshal Ushers In Fire Prevention Week - “Hear the Beep Where You Sleep!”

    Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller