Texas’ tax climate compares relatively well to most other states, according to a new report from the Tax Foundation.
Overall, the report ranked Texas’ tax system as the 13th friendliest in the nation, a slight decline from last year’s 11th place finish, but still a good showing nonetheless. The state’s overall ranking is based on five indices: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and property taxes.
Here is how Texas ranked in each: – 13th overall; – 46th in the Corporate Tax Index; – 7th in the Individual Income Tax Index; – 37th in the Sales Tax Index; – 15th in the Unemployment Insurance Tax Index; – 29th in the Property Tax Index.
Obviously, the state’s tax system could stand some fine-tuning-such as eliminating the property tax and replacing it with a broad-based sales tax and further reducing, if not altogether eliminating, the margin tax-but overall the state’s tax climate is still proving to be fairly competitive.
– James Quintero