From 5th in unemployment insurance taxes to 50th in sales taxes, here’s how Louisiana’s tax climate measures up.
The Tax Foundation’s annual State Business Tax Climate Index analyzes more than 100 tax variables in five categories—corporate, individual, income, sales, property and unemployment insurance taxes—to determine how each state’s tax code compares to the rest. According to the foundation, the more complex, burdensome and economically harmful the tax code is, the worse the state’s score. States with transparent and neutral tax codes that don’t distort business decisions, however, earn better rankings. This is why NFIB Louisiana has a seat on the Sales and Use Tax Streamlining Commission to advocate for ways to improve our tax code for small, family owned businesses. We know that a more modern tax code will be beneficial to existing Louisiana business owners and new, startup companies.
Here’s how Louisiana stacked up in the 2016 report:
- 37th overall
- 38th in corporate taxes
- 27th in individual income taxes
- 50th in sales taxes
- 5th in unemployment insurance taxes
- 28th in property taxes
Neighboring states Texas and Mississippi fared better, ranking 10th and 20th overall, respectively. Arkansas ranked just below Louisiana at No. 38.
“The evidence shows that states with the best tax systems will be the most competitive at attracting new businesses and most effective at generating economic and employment growth,” the study says. “…unlike changes to a state’s healthcare, transportation, or education systems, which can take decades to implement, changes to the tax code can quickly improve a state’s business climate.”
Click here to read the full study.
