UI tax impact
The report emphasizes that UI taxes, though often overlooked, can significantly affect a state’s business tax climate. States with the most competitive UI tax systems, such as Delaware, Arizona, Nebraska, Kansas, and Missouri, typically have lower tax rates, wage bases closer to the federal level, and simpler experience formulas.
Conversely, states like Hawaii, Rhode Island, Massachusetts, Nevada, and New Jersey rank poorly, with New Jersey being the worst. These states generally have higher tax rates, wage bases well above the federal level, and more complex systems with additional surtaxes.
To dig deeper, visit the original article on the Thomson Reuters blog.