BUSINESS TAX BURDEN IN MT

WHY WOULD YOU OPEN A BUSINESS IN MONTANA??

A few weeks ago a report came across my desk from the Anderson Economic Group out of Michigan. They recently completed their annual study on State Business Tax Burden Rankings. The best thing about the study, which can be found here, is that they consider the ratio of taxes paid to profits earned.

This is a GREAT way to judge; basically how much of your profit does the government take? I can’t think of a better indicator.

Where did Montana rank you ask???? DEAD LAST!! We came in 51st place, with Washington D.C. added.

Montana’s overall tax burden was 30.61%!!! So, every time as a business owner you make $1 you’re paying almost 31 cents to the government. When you add in overhead…that’s an astonishing amount of your money out the window.

So I decided to look at our neighbors:

State % Tax Burden

South Dakota 12.60%

Wyoming 20.32%

Idaho 19.75%

North Dakota 20.32%

Average 17.77%

Surrounding states on average have a 12.84% LOWER TAX BURDEN!!

The thing that I keep coming back to is…why would ANY business owner come to Montana?? Especially when the surrounding states average a 12.84% LOWER TAX BURDEN!

These numbers are troubling, especially in this tough economy. The politicians at the local AND state levels need to lessen the burden on business owners so we can attract business and they can hire new employees.

Any politicians ready to stand up and help our business owners? Or maybe I’m WAY off and the government can just borrow a bunch of money save us and the economy…oh wait that’s an idea only a lunatic and/or politician could come up with.

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