Tax Foundation Report:  North Dakota’s National Tax Ranking Would Improve Under Measure #2

Measure #2 Offers North Dakota a Chance to be “More Than Mediocre”

BISMARCK, ND – The non-partisan, non-profit Tax Foundation today released a report indicating that Measure #2 will improve North Dakota’s overall competitiveness in regional and national rankings.   

According to the Tax Foundation’s report, implementation of Measure #2 will improve North Dakota’s Individual Income Tax Ranking from 35^th to 17^th, and the Corporate Income Tax Ranking from 30^th to 19^th, with the overall ranking improving from 30^th to 24^th. 

The Tax Foundation’s rankings take into account the application of individual income tax rates on sole proprietorships, partnerships, and S-corporations.  Measure #2 on the North Dakota state election ballot would reduce the state individual income tax by 50% and the state corporate income tax by 15%. 

“With many states struggling in the current economic situation, now is the perfect time to elevate our rankings nationally while other states are simply not in the position to do so,” said AFP-North Dakota State Policy Director Dustin Gawrylow. “North Dakota must position itself as a place that entrepreneurs can come and create new businesses and not be hit by burdensome state income taxes that reduce the amount of reinvestment that can be made into their businesses.”

Currently, neighboring states ranked high in the Tax Foundation study with South Dakota placing 1^st, Wyoming 2^nd, and Montana close behind at 6^th. AFP-North Dakota questions the state’s ability to compete nationally and globally when so far behind in its own region.

“To create sustainable economic growth we must reform the state income tax code to allow a more diversified growth of business from the ground up,” said Gawrylow. “Measure #2 will dramatically improve North Dakota’s rankings in next year’s state business tax climate report.  More importantly, North Dakota will immediately leapfrog over several states and move higher on the target lists of those looking to expand their businesses.” 

The full Tax Foundation report can be found in the Fiscal Facts Section at http://www.taxfoundation.org/publications/show/23793.html

Americans for Prosperity (AFP) is a nationwide organization of citizen leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFP educates and engages citizens in support of restraining state and federal government growth, and returning government to its constitutional limits. For more information, visit www.americansforprosperity.org

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