State Tax Increases

The supporters of the $787 billion stimulus package , back in February, were armed with arguments that the package would limit the need for states to increase their taxes. Now, those arguments are being smashed with tax-hike proposals, in at least 10 states. While our federal government runs wild with deficit spending, many state constitutions prohibit carrying a deficit into the next fiscal year. Unlike Nevada, where there still are no state income taxes and corporate income taxes, New York, Arizona, California are leading the march to boost taxes. New York, for example, has raised taxes 68% from 6.85 percent to 8.97 percent at the top income level.

States with huge tax hikes are making it more expensive for people and, maybe more importantly, businesses from other areas to relocate to their state. There is also a significant amount of research that shows a link between state tax increases and a rise in the number of people fleeing the state.

This is one reason why we at Silver Shield Services, Inc. feel it is a smart business decision to form and domicile your company in Nevada. Please feel free to call us at (775) 577-4822 to discuss the advantages of incorporating in Nevada.