A Plan for Corporate Tax Reform in North Dakota
North Dakota’s corporate tax regime compares favorably to that in most other states. In its 2023 State Business Tax Climate Index, the Tax Foundation ranks it 9th in the United States.
But there’s still room for improvement. There are three simple measures the legislature could pass into law that would make North Dakota’s corporate tax system even more competitive.
State policymakers should:
1) Index the corporate income tax for inflation
2) Repeal the “throwback rule”
3) Exempt business inputs from the sales tax
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