Hooray, Oregon is #10 on the list of states with the best “business tax climate” as reported by The Tax Foundation. This is a particularly hokey exercise in my opinion for several reasons:
- Many, many things influence where a business locates. Is there an educated workforce? Is this where company employees want to live? Do they have access to customers, transportation? What does the competition look like, and on and on. Taxes is just one cost of doing business.
- States competing with one another to offer the best “tax climate” is essentially a tax cut scheme. For state and local government its a race to the bottom. Who will cut taxes and therefore services, borrow more, and defer costs, to bring in business. Only to watch business move on to a “better climate”
- The list itself is bogus. Look at the “tax hells” where presumably no business should locate: California (#47), Connecticut (#38), New York (#48). These are some of wealthiest, fastest growing states in the US. Yes, they are expensive locations, including their taxes, but that’s because they are so successful. People and businesses want to locate there.
The Tax Foundation claims to be non-partisan, but they supports little more than cutting taxes, and therefore redistributing wealth to the wealthy–at the expense of the public interest and future generations.