SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
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        


36 Comments
  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:

    BigBob…

    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.

    Wisconsin

    http://www.jec.senate.gov/public//index.cfm?a=Files.Serve&File_id=762aa1d9-2ec9-46b7-8b5d-b4ca73aa4b9c

    Illinois

    http://www.jec.senate.gov/public//index.cfm?a=Files.Serve&File_id=b3163626-3441-44dc-9f40-b64e0b64e28c


  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%
    http://www.deptofnumbers.com/income/wisconsin/

    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:

    @Anon
    =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”

    http://southtownstar.suntimes.com/business/28543556-420/arcelormittal-fined-over-indiana-workers-death.html#.U77gbmdOXug


  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.

    http://www.huffingtonpost.com/2014/07/09/obamacare-medicaid-uninsured_n_5572079.html?ncid=txtlnkusaolp00000592

    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.

    Example:
    http://www.jsonline.com/business/wisconsin-gained-28054-private-sector-jobs-over-last-12-months-b99290756z1-263818541.html


  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 …

    http://www.rollingstone.com/politics/news/lone-star-crazy-how-right-wing-extremists-took-over-texas-20140701

    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:

    Ghost:

    Great analysis.

    With Respect,

    YDD


Sorry, comments for this post are now closed.


* Fox Lake shooting react
* AFSCME responds to Rauner's racial argument
* Oh, c'mon
* Question of the day
* Chris Crane: New Plan Will Help Ensure Reliable Power
* Teamsters leader: Rauner admin "compromised and gave concessions" for "fair" agreement
* State avoids contempt citation... for now
* Group: Proposed child care rule changes are illegal
* *** UPDATED x1 - Quinn's office responds *** Art returned after police report filed
* NORML: GA should accept Rauner's AV
* Maybe not
* Message synergy
* AFSCME claims threats, calls Rauner opposition "hysteria"
* Rauner using race as an issue against AFSCME bill
* Running on empty and can't fill the tank
* Attorneys: Providers still not being paid
* Moody's: Illinois ratings will be based on whether state can deal with revenue problems and show it can make required pension payments
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............


Search This Blog...

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

Search the 98th General Assembly By Keyword

          
        * Line Launcher lets you customize your Android smartphones even more
        * Huawei to reveal new device with “Incredible Touch” at IFA 2015
        * Google debuts brand new logo, evolves new identity for all brands
        * KinoConsole streams games from your PC to your Android device
        * OxygenOS 2.0.2 rolling out today via OTA
        * Could this be the HTC One A9?
        * ADV Screen Recorder lets you save screencasts sans rooting and crashing

        * Robertson undeterred by waiver claim reports
        * Hawkins headlines Arizona Fall League contingent
        * Johnson among first four White Sox callups
        * White Sox sending eight prospects to Arizona Fall League
        * White Sox call up Erik Johnson, Leury Garcia, Frankie Montas, and R...
        * White Sox call up 4, including Johnson and Montas
        * Fall League rosters packed with elite prospects

        ...............


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        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

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * 7 dead from Legionnaires' disease at Quincy veterans home
        * Lawsuit: U of Illinois retaliated over sex harassment claim
        * Illinois House gears up for override of union-strike veto
        * Scott Air Force Base unit might lost 51 jobs to Virginia
        * Custody fight to focus on Illinois mom's role in 2003 deaths
        * Judge declines to hold Illinois in contempt on payments
        * Manhunt in northern Illinois prompts school lockdown
        * EXCHANGE: Sycamore family ponders future after loss of barn
        * HUD approves loan guarantee to Rockford for hotel project
        * Marion trailer park pays $75K to settle discrimination probe

        * House faces crucial vote on union arbitration bill
        * LIHEAP program delayed by state budget impasse
        * United Way advance keeps Helping Hands shelter open as budget impasse continues
        * Judge declines to hold Illinois in contempt on payments
        * State, Teamsters agree on new contract that includes four-year wage freeze
        * State, Teamsters agree on new contract
        * Rauner signs law toughening penalties on drunken drivers
        * Illinois State Museum is latest target in political fight
        * Moody's warns Illinois lawmakers of budget stalemate impact
        * Rauner signs law toughening penalties on drunk drivers

        * Illinois House gears up for override of union-strike veto
        * Illinois could get Jeep Cherokee production
        * Lurie Children's to staff pediatric services at Mercy Hospital
        * McDonald's to roll out all-day breakfast
        * McDonald's rolls out all-day breakfast


          * Chicago-area man sues Ashley Madison so he can keep dating
          * Hillary Clinton emails include chats with old Chicago friend
          * Pope Francis enables priests to forgive women after abortion
          * Pope Francis enables priests to forgive women after abortion
          * Shootings leave 4 injured including boy, 16 on South and Northwest Sides
          * Emanuel calls on Rauner to reconsider child care cuts
          * Slain Fox Lake police officer identified as veteran cop, father of four
          * How Chicago girl got to sing for Pope Francis
          * Legionnaires' outbreak in veterans' home worsens; 7 dead
          * Mayor Emanuel won't rule out tax on ride-hailing companies


          * House faces crucial vote on union arbitration bill
          * LIHEAP program delayed by state budget impasse
          * United Way advance keeps Helping Hands shelter open as budget impasse continues
          * Judge declines to hold Illinois in contempt on payments
          * Todd Maisch: National labor board's decision a real jobs killer
          * State, Teamsters agree on new contract that includes four-year wage freeze
          * Rauner signs law toughening penalties on drunken drivers
          * Illinois State Museum is latest target in political fight
          * Moody's warns Illinois lawmakers of budget stalemate impact
          * The Rev. David Hoefler: Springfield diocese not targeting non-Catholics


          * UI Basketball Chalk Talk 2015
          * Peoria dyslexia tutoring center reopening under new management
          * Sports Talk 09-01-15
          * Monticello OKs renderings for town hall discussion on school facilities
          * Ludlow Grade School expects balanced budget
          * UI Natural History Renovation 2015
          * Updated: Police in Illinois hunt for 3 suspects after officer killed
          * PODCAST: Club Krannert with Bridget Lee-Calfas
          * MJ's Minute, Sept. 1, 2015: Who's starting?
          * Tuscola ranked No. 1 in AP Poll; 5 other area teams ranked


          * Kessler is stalwart leader, standout passer for No. 8 USC
          * Slain Fox Lake officer, father of 4, was to retire this month
          * Considering all options
          * 12 suburban officers who have died on duty since 1985
          * Presence Health, Physicians to partner

          * 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

          * Northerly Island nature preserve toured by......
          * Northerly Island Park opens Friday on Chic......
          * Sen. Durbin, Rep. Schakowsky announce Leve......

          * Sen. Kirk calls attention to International......
          * On International Overdose Day, Kirk Urges ......

          * ABC 7 asks if guns with a silencer are a threat to safety....
          * It's September...
          * Hulk Hogan
          * T
          * edTPA and TFA are two sides of the same coin.
          * Cook County Board of Review's Dan Patlak to face GOP primary challenge in 2016
          * Federal judge lifts contempt question from Comptroller
          * Fox Lake shooting: Officer dead, three suspects sought
          * Judge Rules Against Holding Illinois In Contempt Over Disability Payments
          * Illinois House Could Consider Veto Override Of Labor Bill This Week


          * Legionnaires’ Disease Outbreak at Illinois Veterans’ Home-Quincy Update
          * State-Teamsters One Step Closer to Finalizing Agreement
          * Veteran Spouse Ada Ruth Cripps Honored As The IDVA Volunteer of the Year
          * Governor Announces Appointments
          * State to Issue $16 million in Credits to Reverse Penalties for Monthly Electronic Wage Reporting - Rules provide relief for nearly 13,000 employers over the next six months




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