Tax Foundation Study: CT Has 7th-Worst State Business Tax ClimateOctober 18, 2017
The Tax Foundation's 2018 edition of its annual study saw Connecticut drop in the state business tax climate rankings, from 43rd to 44th in the nation.
Connecticut has the seventh-worst state business tax climate in the nation, according to a study released on Tuesday by the Tax Foundation.
The #44 ranking for Connecticut in the 2018 index is a drop from the 2017 index, when Connecticut ranked 43rd.
Connecticut made the list of the “10 lowest ranked, or worst, states in this year’s Index.” Only the true-blue states of New Jersey, New York, California, Vermont, and Minnesota – and the state of Ohio – are ranked lower.
The Tax Foundation said of the “bottom 10” states:
The states in the bottom 10 tend to have a number of afflictions in common: complex, nonneutral taxes with comparatively high rates.
Many Connecticut residents and business owners would argue this applies to the Nutmeg State.
Connecticut ranked poorly in:
- Property Tax Rank (#49, ahead of just New Jersey)
- Individual Income Tax Rank (#37)
- Corporate Tax Rank (#31)
- Sales Tax Rank (#27)
It only fared ‘well’ in Unemployment Insurance Tax Rank (19th).
According to the Tax Foundation, Connecticut has an effective corporate income tax of nine percent, among the highest in the nation.
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