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{ Where to Expand? Understanding State & Local Taxes & Regulations Jason Sorens, Dartmouth College Dept. of Government 16 June 2015 – Expand in the USA, Mississauga, ON
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Overview of state & local policies relevant to business State Taxes & fees Individual income/wage base Business income Unemployment General sales/gross receipts Selective sales/excise Incorporation/business license Local Taxes & fees (Rarely) individual income Property Impact (land use) (Rarely) sales
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Overview (cont.) State Regulations Land/takings Labor laws Insurance Cable/telecom Utilities Occupational licensing/business entry Liability law Local Regulations Land use, rents, development Business entry, licenses, utility franchising Minimum wages
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{ A Comparison of Methods Measuring State and Local Regulation
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Let’s combine the three!
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staterank Idaho1 Utah2 Tennessee3 Virginia4 Iowa5 Indiana6 Delaware7 Nebraska8 Texas9 Oklahoma10 Kansas11 Georgia12 Nevada13 Arizona14 New Hampshire15 North Carolina16 South Carolina17 Florida18 Missouri19 Colorado20 Alabama21 Wisconsin22 Ohio23 Minnesota24 Arkansas25 Kentucky26 Louisiana27 Montana28 Michigan29 Maine30 Oregon31 Pennsylvania32 Mississippi33 Washington34 New Mexico35 Connecticut36 Massachusetts37 Vermont38 Maryland39 Illinois40 Hawaii41 Rhode Island42 New Jersey43 New York44 California45
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{ 1) Policy and migration 2) A closer look at cost of living 3) Trajectories Policies matter!
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Recent legislation Right-to-work: Indiana, Michigan, Wisconsin Minimum wage hikes: Alaska, Ark., Conn., Del., Hawaii, Md., Mass., Mich., Minn., Neb., R.I., S.D., Vt., W.Va. Ideological change Biggest shifts to the right since 2000: Ark., W.Va., La., Tenn., Okla. Biggest shifts to the left: Vt., Va., Calif., Colo., Md., Nev. Trajectories
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1. States differ significantly in their tax & regulatory policies. 2. These differences have significant consequences for the overall business environment. 3. Small & large businesses generally want the same thing: “economic freedom.” 4. Some states are improving their business climate while others stand still or regress: best opportunities might be found where the trajectory is good. Conclusions
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