The Costs of Doing Business

MMT not only covers the technology behind making molds, but we also look at the business side of mold manufacturing, including this new report that examines the bottom line state tax bill for manufacturers in each state.

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MMT not only covers the technology behind making molds, but we also look at the business side of mold manufacturing, including this new report fro the Tax Foundation that examines the bottom line state tax bill for manufacturers in each state.

The report called, Location Matters: The State Tax Costs of Doing Business,  is an apples-to-apples comparison of actual state tax burdens faced by real-world businesses. According to the Tax Foundation, it also illustrates the different types of taxes and rates businesses face and highlights how differently each state’s code treats new and previously established firms.

Tax Foundation economists created seven model firms in different industries (including capital- and labor-intensive manufacturing), and tax specialists calculated the tax bill for those firms in each state, both as new facilities and as mature firms (ones that are at least 10 years old).  Here’s a list of the highest and lowest effective tax rates on the mature model manufacturing firms:

  • The capital-intensive manufacturer faced the highest effective tax rates in:
    Indiana (19.2%), Mississippi (17.8%), Maine (17.6), Vermont (17.2%), and Wisconsin (16.5%)
  • The capital-intensive manufacturer faced the lowest effective tax rates in:
    Iowa (3.9%), Minnesota (4.0%), Wyoming (4.1%), Pennsylvania (4.2%), South Dakota (4.2%)
  • The labor-intensive manufacturer faced the highest effective tax rates in:
    Rhode Island (14.9%), Hawaii (14.8%), Illinois (14.4%), West Virginia (13.6%), and Indiana (13.5%)
  • The labor-intensive manufacturer faced the lowest effective tax rates in:
    Wyoming (4.3%), Virginia (4.3%), Georgia (4.6%), Maryland (4.9%), Nebraska (5.5%)

For the full report click here.

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