The Tax Foundation’s 2014 Business Tax Rankings (PDF) upset some Texans by claiming Texas had fallen to 11th place, down from ninth place in 2013, as a business tax-friendly state. But these rankings are misleading according to Dale Craymer, President of Texas Taxpayers and Research Association: it’s even worse than 11th place!
Texas taxes are just not as business-friendly as the rankings indicate, according to a guest column in the Texas Tribune authored by Craymer. Craymer says the ratings are flawed because they give too much positive rating to states without a personal income tax (like Texas), which is a tax on individuals, not businesses. Evidently Craymer believes the rating also gives too much weight to direct business taxes and not enough to indirect taxes such as the property tax, which is quite significant for Texas businesses. Craymer is an economist.
Click here if you want to learn more about his views.