Businesses Pay $447 Billion in State and Local Taxes
State and locaL taxes imposed on businesses exceeded $447 billion in FY2004-nearly 10 percent higher than in FY2003-according to a new study released by the Council On State Taxation (COST). The study, which shows that businesses pay 43 percent of all state and local taxes, will help policymakers better understand the true burden of taxes on businesses in their states and localities. (The complete study is available at http://www.statetax.org)
"State lawmakers are frequently asked to make decisions on complex business tax issues," said Doug Lindholm, COST'S President & Executive Director. "Unfortunately, lawmakers too often focus on the corporate income tax, which is only one of many taxes businesses pay to state and local government. We hope that our study, which presents a complete state-by-state picture of business taxes, leads to more informed debate on these issues."
"In addition to national figures, we calculated state and local business taxes for each state for FY2000 and FY2004," said Bob Cline, co-author of the study and National Director of State and Local Tax Policy Economics for Ernst & Young. …