Innovation
Business Taxes
Description: This indicator compares business taxes in Arizona to those in other states. Five tax categories are included: corporate, individual income, sales, unemployment insurance, and property taxes. These are combined into an overall figure.
The ranks of Arizona among the states from 2003 through 2008 are included on the dashboard (no data are available from the source for 2005). Ranks are presented for each of the tax categories.
Rationale: All other factors equal, a lower tax incidence is a positive feature in attracting innovative firms and individuals. However, low taxes associated with few and/or low-quality public services are a negative factor in innovation.
Data Source: The Tax Foundation http://www.taxfoundation.org/research/topic/90.html.
Comments on the Quality of the Data: The Tax Foundation figures represent a projection of older data to the current year. The 2008 data were released in October 2007. The Tax Foundation does not provide details about the methodology they use. Caution is suggested in using these data.
