California may be the Golden State, but if you're a business owner you might see red when it comes time to fork over your taxes.
California came in 48th in the Tax Foundation's ranking of state business tax climates, beat out for the bottom by only New Jersey and New York. The rankings were based on tax rates and their complexity, according to the organization's website. The rankings took into account sales tax, income tax, corporate income tax, unemployment insurance tax and property tax rates.
California, for example, ranks dead last in the individual income tax category and 41st for sales tax.
"The goal of the State Business Tax Climate Index is to start a conversation with policymakers about how their states fare against the rest of the country,” foundation economist Scott Drenkard said in a release. “With this report, we’re asking: ‘How well is your tax code structured? Are businesses in your state spending too much time complying with onerous tax provisions? Are you double taxing things you shouldn’t?’”
California might have extra reason to worry when it comes to losing business to the states that ranked in the Top 10. Our neighbor Nevada came in No., with Wyoming and South Dakota in the top two spots.
In studies, officials at the Center on Budget and Policy Priorities have found no consensus on any correlation between state tax levels and economic growth.