Just as many tax accounts are creative in finding ways around taxes, so too are the politicians who come up with new taxes. This is evident in the latest state business tax ranking issued by the Tax Foundation. One would assume that Tennessee, where I live, would be among the highest ranked states for a favorable tax climate for business. After all, we have no state personal income tax and a relatively low corporate tax. But sadly, we come in kind of in the middle at 18th.
Politicians are finding ways to tax us all around and everywhere except on income (for now, at least). We have one of the highest state sales taxes, a "significant tax" on personal income from interest and dividends, a "franchise tax" on LLCs, and higher than average unemployment and property taxes. Tennessee tax policy clearly favors large, traditional corporations, rather than entrepreneurs and small business owners. This is not good news with America's emerging entrepreneurial economy.
