An Open Letter to Wyoming Senators
On behalf of the undersigned organizations, we write today to oppose the implementation of a new and discriminatory business income tax contained within HB 220. Wyoming legislators have wisely rejected calls for an income tax in past sessions, and by doing so, have helped retain one of the friendliest business climates in the nation. Wyoming’s economic advantage is now at risk with this proposed legislation.
Adoption of HB 220 would lead to the following negative economic consequences:
The truth of the matter is this: When government taxes a business, there is nothing that business can do but pass the burden on to individuals in one form or another. Hardworking individual taxpayers ultimately pay the burden of business taxes. Hiking business taxes leads to higher prices at the gas pump, a larger bill at the grocery store, and less disposable income for all Wyoming citizens.
In addition, even though all taxes are harmful to economic growth, different forms of taxation can hurt economic growth more than others. A study done by the Organization for Economic Cooperation and Development (OECD)–a group not known for skepticism of taxes or government programs–ranked taxes in terms of their relative damage to an economy. They found business taxes are the most harmful to economic growth followed by taxes on personal income.
Importantly, in the past four years nearly 30 states have significantly reduced their tax burdens, many times focusing on reducing corporate income taxes to increase the competitiveness of their state economies. Indiana and North Carolina are perfect examples. These two states exemplify the economic rewards of instituting tax reform and lowering tax burdens, and because of recent legislative action they both continue to experience an influx of capital, businesses, and people.
Unfortunately, instituting a new income tax will severely damage Wyoming’s longstanding pro-growth economic climate. The undersigned organizations consider HB 220 to be bad public policy which would damage the economic outlook of Wyoming and kill jobs.
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