Which States Are Best for Business? 2009 State Business Tax Climate Index
Source: Tax Foundations

Wyoming has the best, and New Jersey has the worst, tax systems when it comes to “business friendliness,” according to the Tax Foundation’s recently completed 2009 State Business Tax Climate Index, a ranking of the 50 state tax systems that provides a roadmap for state lawmakers concerned with keeping their states tax-competitive.

Keeping a state competitive in today’s global marketplace can be difficult, but there is one factor lawmakers have direct control over: the quality of state tax systems. The Index measures how well a state’s tax system encourages investment by maintaining a broad tax base and low rates.
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The Index, published yearly by the Tax Foundation since 2003, ranks states based on the taxes that matter most to businesses and business investment: corporate tax, individual income tax, sales tax, unemployment tax and property tax. The states are scored on these taxes, and the scores are weighted based on the relative importance or impact of the tax to a business.

The top ten states in the Index, from 1st to 10th, are Wyoming, South Dakota, Nevada, Alaska, Florida, Montana, Texas, New Hampshire, Oregon, and Delaware. The bottom ten states, from 41st to 50th, are Minnesota, Nebraska, Vermont, Iowa, Maryland, Rhode Island, Ohio, California, New York and New Jersey.

+ 2009 State Business Tax Climate Index (Sixth Edition)

This entry was posted on Tuesday, October 7th, 2008 at 9:53 pm and is filed under Business and economics, Government and politics, Taxation. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.