The Tax Foundation’s State Business Tax Climate Index
Every year the Tax Foundation creates a new State Business Tax Climate Index (SBTCI) by stirring together over 100 features of state tax law and producing out of that stew a single grade for each state. That grade bears very little relationship to what businesses actually pay in taxes. While the Tax Foundation asserts that they are measuring the competitiveness of states’ tax structures, they provide no evidence that their index influences business decisions.
The SBTCI Bears No Relation to Actual Taxes on Business
The annual State Business Tax Climate Index (SBTCI) purports to measure a state’s “tax competitiveness” but the index turns out to bear very little relationship to what businesses actually pay in taxes in one state versus another. Read more
The SBTCI is a Poor Measure of Growth Potential
Scoring well on the State Business Tax Climate Index (SBTCI) does not mean a state will experience more growth, nor does the index provide any useful guidance for public policy. Read more
Anatomy of the State Business Tax Climate Index
The State Business Tax Climate Index (SBTCI) is a collection of over 100 features of state tax law reduced to an index number. Here are the details of how it is structured. Read more
The Tax Foundation Fails to Defend its Methodology
The Tax Foundation’s response to its critics is sparse and misses the point. Read more
What Others Have Written about the Tax Foundation’s Rankings
Key commentary on the research methods and policy prescriptions of the Tax Foundation. Read more
What is the Tax Foundation?
From its founding in 1937 to its current board of directors, the Tax Foundation represents the corporate view of tax policy. Read more