Glenn links an interesting post considering the “2010 State Business Tax Climate Index, which ranks the fifty states according to five indices: corporate tax, individual income tax, sales tax, unemployment insurance tax, and property tax. Here are the ten states with the best and worst business tax climates.”
Blogger Paul L. Caron points out that
. . . all ten of the states with the worst business tax climates voted for Barack Obama in the 2008 presidential election, and five of the ten states with the best business tax climates voted for John McCain (South Dakota #1, Wyoming (#2), Alaska (#3), Montana (#6), and Utah (#10)).
Something different struck me. Of the five states with the best business climate (South Dakota, Wyoming, Alaska, Nevada and Florida), four have Republican Governors. In Wyoming, the one state (on that list) with a Democratic chief executive, the legislature is overwhelmingly Republican.
Of the five states with the worst business climate (Iowa, Ohio, California, New York and New Jersey), four have Democratic Governors. In California, the one state (on that list) with a Republican chief executive, the legislature is overwhelmingly Democratic.To be sure, this formula doesn’t work perfectly; some of the best Governors, sensitive to the business needs of their states and hence averse to increased taxation, have come from the Democratic Party, notably Tennessee’s Phil Bredesen. And some Republicans, eager to curry favor with special interests and win accolades from the news media, have hiked taxes (and increased regulation), notably Ohio’s immediate past Governor Bob Taft.