A Closer Examination of the Total State and Local Business Tax Burden

Abstract

The authors examine the state and local tax burden on businesses. They found that in fiscal 2002, businesses paid $378.9 billion in state and local taxes, representing 41 percent of total state and local taxes. Business taxes have increased even during a time of falling corporate profitability because corporate income taxes are but one of the many taxes paid by businesses to state and local governments, the authors say.