On Wednesday, the Tax Foundation came out with a study on the tax rates different types of businesses face in different states.
Broadly speaking, the foundation found that corporate taxation practices vary widely not only from state to state, but even from one business to another within any one state, and even between businesses in the same line of work in the same state depending on the age of their facilities, with newer locations getting sizable tax breaks and incentives.
“Until you see the data in black and white, these are just perceptions” of differences, Scott Hodge, president of the Tax Foundation, a think-tank that generally favors lower tax rates for corporations, told me.
By putting numbers on the variations in tax rates that businesses face, the foundation hopes to ignite debate and perhaps prompt greater fairness among taxpayers, Hodge said.
Michael LaFaive, director of fiscal policy for the Mackinac Center for Public Policy, a pro-free market Michigan-based think-tank, said the report may get a serious hearing in state capitals.