The worst states for taxes

The Tax Foundation in Washington, D.C., has released its annual State Business Tax Climate Index. Based upon 112 variables in five component indexes, the best rankings reward those states that more completely and consistently apply the following principles:

•Good state tax systems levy low, flat rates on the broadest bases possible, and
•they treat all taxpayers the same. Variation in the tax treatment of different industries favors one economic activity or decision over another.
•The more riddled a tax system is with politically-motivated preferences the less likely it is that business decisions will be made in response to market forces.

The ten worst states (from least worst to ultimate worst) are: Vermont (#41),
Wisconsin, Minnesota, Rhode Island, Maryland, Iowa, Ohio, California, New York, and New Jersey (#50).

Anyone in any state would benefit from pro-active tax planning, but if you live in these states, you stand to benefit the most from tax strategies that minimize the amount of tax that you legally owe. If you live in those states, you stand to lose the most as you continue to postpone active strategies that could reduce your overall tax burden.

Tea party protests don’t reduce your taxes – pro-active tax strategies do!

The full study can be found on the Tax Foundation website: www.taxfoundation.org/files/bp59.pdf.

The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!