The Tax Foundation introduces its 2009 State Business Tax Climate Index with the words: “Taxes matter to business. They affect location decisions, job creation and retention, international competitiveness, and the long-term health of the state’s economy.” Which states have figured this out and which are sending a “not welcome” sign to businesses considering setting up shop in their state?
Page 2 of the report displays a map showing the 10 worst and the 10 best state business tax climates:
10 Worst Business Tax Climates
50 New Jersey (worst in the country)
49 New York
46 Rhode Island (49 in 2008; 50 in 2007 and 2006)
10 Best Business Tax Climates
1 Wyoming (best in the country)
2 South Dakota
8 New Hampshire
The index considers 5 component indexes: (1) the corporate tax rate, (2) the individual income tax index, (3) the sales tax index, (4) the unemployment tax index, and (5) the property tax index. Each component index displays 4 years of data, so readers can view positive and negative changes over time.
An executive summary of the report can be found at: