Which States Are Best for Business? 2010 State Business Tax Climate Index
Source: Tax Foundation

South Dakota has the most “business-friendly” tax system, and New Jersey has the least, according to the Tax Foundation’s 2010 State Business Tax Climate Index released today. The Index measures the competitiveness of the 50 states’ tax systems and ranks them accordingly based on the taxes that matter most to businesses and business investment: corporate income, individual income, sales, property and unemployment insurance taxes.

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. 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 top 10 states in the 2010 Index, from 1st to 10th, are South Dakota, Wyoming, Alaska, Nevada, Florida, Montana, New Hampshire, Delaware, Washington and Utah. The bottom 10 states, from 41st to 50th, are Vermont, Wisconsin, Minnesota, Rhode Island, Maryland, Iowa, Ohio, California, New York and New Jersey.

+ 2010 State Business Tax Climate Index (Seventh Edition)

This entry was posted on Thursday, September 24th, 2009 at 1:34 am and is filed under Business and economics, Lists & Rankings, 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.