Best And Worst State Tax Structures, With Manish Bhatt

State tax consequences often don’t get the consideration they deserve, due to the sheer number of different frameworks that exist. Yet state income tax rates can have a major impact on investors’ tax bills.

Manish Bhatt, Senior Policy Analyst with the Center for State Tax Policy at the Tax Foundation, joins Michael to discuss what makes a sound state tax policy and how poorly structured states can improve.

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Episode Highlights

  • Summary of the annual State Business Tax Climate Index, which measures how well each state structures its tax system.
  • Discussion of the four components of a well-structured tax code: simplicity, transparency, neutrality, and stability.
  • Dive into each of the components of the index, including corporate tax, individual income tax, sales tax, property tax, and unemployment insurance tax.
  • Review of trends in state tax codes in recent year, including a “flat tax revolution.”
  • Ideas for “low hanging fruit” that exists for states looking to improve their tax code.

Episode Resources

Today’s Guest: Guest, Company

About The Tax Efficient Investor Podcast

On the Tax Efficient Investor podcast, we show you how to protect, grow, and transfer your wealth by implementing tax-advantaged investment strategies. Host Michael Johnston demystifies tax strategies that are favored by the most successful and sophisticated investors, including 1031 exchanges, IRA & 401k plans, HSA accounts, trusts, real estate, and more.

Michael Johnston, CFA
Michael Johnston, CFA

Michael Johnston, CFA is the co-founder and President at WealthChannel, and host of WealthChannel Academy.

Michael previously founded ETF Database, the leading independent authority on exchange-traded fund investing.

Michael's professional experience includes positions in corporate finance and investment banking, as well as entrepreneurial experience as a co-founder and early employee in multiple high growth, venture-backed companies.

Michael graduated from the University of Notre Dame with a degree in Finance. He lives in Oregon with his wife and son.