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IOWA - CLIMATE AND TAX CLIMATE COULD BE WORSE

October 15, 2004

The Tax Foundation released a study of the tax climate of different states. It seems that any correlation between weather and tax climate is very shaky:

Map Source: Tax Foundation. Click map to enlarge.

Most of us would say Hawaii has the best climate in the U.S. The Tax Foundation says Hawaii pays for its nice weather with the worst tax climate in the country. Looking to see whether tax climate and good weather are inversely related, we see that South Dakota has the best tax climate, and Alaska has the third best. That would seem to support an inverse relationship.

The bad weather, good tax hypothesis falls apart quickly on further examination. North Dakota, arguably with the worst weather in the lower 48, has the 11th worst tax climate. Minnesota and New York, not much blessed with warm ocean breezes, have the 3rd and 2nd worst tax climates, while balmy Florida has the second best climate.

Iowa? Just a bit below average, says the Tax Foundation. Economic development motto suggestion: "Nebraska's worse!" For the first time ever, that may be true for Big 12 football, too. But probably not.

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