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