How does Hawaii's tax system compare?
From Tax Foundation, October 21, 2020
Last week, we shared with you the latest edition of our International Tax Competitiveness Index, which shows how the U.S. tax system as a whole compares to other developed countries across the globe.
This week, we turn our attention stateside to see how different states' tax codes compare with the 18th edition of our State Business Tax Climate Index.
While there are many ways to measure how much each state collects in taxes, the Index is designed to measure how well states structure their tax systems.
To do that, the Index analyzes more than 120 variables in the five major areas of taxation—corporate taxes, individual income taxes, sales taxes, property taxes, and unemployment insurance taxes.
The result is a powerful tool for understanding how your state's tax code compares and the steps it can take to cultivate a more competitive tax climate.
The modern market is characterized by mobile capital and labor, with all types of businesses, small and large, tending to locate where they have the greatest competitive advantage.
According to the Department of Labor, even in our global economy, states’ stiffest competition often comes from other states.
Evidence shows that states with the best tax systems will be the most competitive at attracting new businesses and most effective at generating economic and employment growth.
And unlike changes to a state’s health-care, transportation, or education systems, which can take decades to implement, changes to the tax code can quickly improve a state’s business climate.
To learn more, you can download the full study here, including a detailed methodology, or you can explore the data by launching our interactive web tool at the link below.
LINK: Explore our Interactive Map Tool
2019: State Business Tax Climate Index--Hawaii Drops from 26th to 37th