What Businesses Really Pay in State and Local Taxes, and Why the Sales Tax Shouldn’t be #1

FERDINAND HOGROIAN serves as Tax & Legislative Counsel at the Council On State Taxation (COST). The views expressed here are his own and do not necessarily reflect the views of COST or its member companies.

Each year, the Council On State Taxation issues its study on the total state and local business tax burden. 1 From my experience in conferences and seminars and from observing coverage in the tax press, the study seems to spark surprise anew each year. Why is that? One reason is the prominence of the corporate income tax in corporate tax departments and state departments of revenue, consuming an outsized portion of private and public sector resources.

Another reason is the ease with which corporate income taxes can be employed in corporate “shaming” campaigns. It is this latter reason which sparked the COST business tax burden study in 2002, as then-New Jersey Governor Jim McGreevey was waging a war on corporate tax “cheats” amidst declining corporate profits and recession.

The total business tax burden.

COST’s study serves to remind policymakers, as it did in 2002, that businesses actually pay a relatively constant share of total state and local taxes. Click here to continue reading…What_Businesses_Really_Pay_in_State_and_Local_Taxes__and_Why_the_Sales_Tax_Shouldn_t_be__1__Journal_

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