Under Dem Bill, Key States to Face Higher Taxes than China

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Posted by John Kartch on Tuesday, September 21st, 2021, 2:23 PM PERMALINK

The corporate tax rate increase and the capital gains tax rate increases in the Democrat reconciliation bill will leave states represented by swing-vote Democrats with significantly higher taxes than China.

China's corporate tax rate is 25% and its capital gains tax is 20%.

In Sen. Kyrsten Sinema's Arizona, the combined federal-state corporate tax rate would be 30.1% vs. China's 25%. The combined federal-state capital gains tax would be 35.17% vs. China's 20%

In Sen. Maggie Hassan's New Hampshire, the combined federal-state corporate tax rate would be 32.2% vs. China's 25%. The combined federal-state capital gains tax would be 36.8% vs. China's 20%.

In Sen. Jon Tester's Montana, the combined federal-state corporate tax rate would be 31.5% vs. China's 25%. The combined federal-state capital gains tax would be 38.41% vs. China's 20%.

In Sen. Joe Manchin's West Virginia, the combined federal-state corporate tax rate would be 31.3% vs. China's 25%. The combined federal-state capital gains tax would be 38.3% vs. China's 20%.

"All 50 Democrat senators need to explain to their constituents why they have decided to saddle them with higher taxes than communist China or Europe," said Grover Norquist, president of Americans for Tax Reform. "The last thing we need right now is a tax increase."

Congressional Democrats are on the verge of raising the federal corporate tax rate from 21% to 26.5%. This would result in a combined federal and state rate average of 31%, higher than China and higher than America’s major economic competitors. The developed world average (OECD) is 23.5%.

If the Democrats' reconciliation bill becomes law, the combined federal-state corporate tax rate and combined federal-state capital gains tax rates for all 50 states would be as follows:

(Source: Tax Foundation maps here and here)

ALABAMA

Corporate: 30%
Capital gains 35.21%

ARIZONA

Corporate: 30.1%
Capital gains: 35.17%

ARKANSAS

Corporate: 31.1%
Capital gains: 34.75%

CALIFORNIA

Corporate: 33%
Capital gains: 45.10%

COLORADO

Corporate: 29.8%
Capital gains: 36.35%

CONNECTICUT

Corporate: 32%
Capital gains: 38.79%

DELAWARE

Corporate: 32.9%
Capital gains: 38.40%

FLORIDA

Corporate: 29.8%
Capital gains: 31.80%

GEORGIA

Corporate: 30.7%
Capital gains: 37.55%

HAWAII

Corporate: 31.2%
Capital gains: 39.05%

IDAHO

Corporate: 31.6%
Capital gains: 38.30% 

ILLINOIS

Corporate: 33.5%
Capital gains: 36.75%

INDIANA

Corporate: 30.1%
Capital gains: 35.03%

IOWA

Corporate: 33.7%
Capital gains: 37.62%

KANSAS

Corporate: 31.6%
Capital gains: 37.50%

KENTUCKY

Corporate: 30.2%
Capital gains: 36.80%

LOUISIANA

Corporate: 30.8%
Capital gains: 35.89%

MAINE

Corporate: 33.1%
Capital gains: 38.95%

MARYLAND

Corporate: 32.6%
Capital gains: 37.55%

MASSACHUSETTS

Corporate: 32.4%
Capital gains: 36.80%

MICHIGAN

Corporate: 30.9%
Capital gains: 36.05%

MINNESOTA

Corporate: 33.7%
Capital gains: 41.65%

MISSISSIPPI

Corporate: 30.2%
Capital gains: 36.80% 

MISSOURI

Corporate: 28.7%
Capital gains: 37.20%

MONTANA

Corporate: 31.5%
Capital gains: 38.41%

NEBRASKA

Corporate: 32%
Capital gains: 38.64%

NEVADA

Corporate: 26.5%
Capital gains: 31.80%

NEW HAMPSHIRE

Corporate: 32.2%
Capital gains: 36.80%

NEW JERSEY

Corporate: 35%
Capital gains: 42.55%

NEW MEXICO

Corporate: 30.8%
Capital gains: 35.34%

NEW YORK

Corporate: 31.8%
Capital gains: 42.70%

NORTH CAROLINA

Corporate: 28.3%
Capital gains: 37.05%

NORTH DAKOTA

Corporate: 29.7%
Capital gains: 33.54%

OHIO

Corporate: 26.5%
Capital gains: 35.79%

OKLAHOMA

Corporate: 30.9%
Capital gains: 36.55%

OREGON

Corporate: 32.1%
Capital gains: 41.70%

PENNSYLVANIA

Corporate: 33.8%
Capital gains: 34.87%

RHODE ISLAND

Corporate: 31.6%
Capital gains: 37.79%

SOUTH CAROLINA

Corporate: 30.2%
Capital gains: 35.72%

SOUTH DAKOTA

Corporate: 26.5%
Capital gains: 31.80%

TENNESSEE

Corporate: 31.3%
Capital gains: 31.80%

TEXAS

Corporate: 26.5%
Capital gains: 31.80%

UTAH

Corporate: 30.1%
Capital gains: 36.75%

VERMONT

Corporate: 32.7%
Capital gains: 40.55%

VIRGINIA

Corporate: 30.9%
Capital gains: 37.55%

WASHINGTON STATE

Corporate: 26.5%
Capital gains: 38.80% 

WEST VIRGINIA

Corporate: 31.3%
Capital gains: 38.30%

WISCONSIN

Corporate: 32.3%
Capital gains: 37.16%

WYOMING

Corporate: 26.5%
Capital gains: 31.80%

WASHINGTON, D.C.

Corporate: 32.6%
Capital gains: 42.55%

Please visit Tax Foundation site for handy maps:

House Democrats Corporate Income Tax Rates by State | Tax Foundation

House Democrats Capital Gains Tax Rates in Each State | Tax Foundation

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