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
- 2023 State Business Tax Climate Index
- Facts & Figures 2023: How Does Your State Compare?
- Does Your State Have a Sales Tax Holiday?
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.
