The State Business Tax Climate Index

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  • 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
    48  California
    47  Ohio
    46  Rhode Island (49 in 2008; 50 in 2007 and 2006)
    45  Maryland
    44  Iowa
    43  Vermont
    42  Nebraska
    41  Minnesota

    10 Best Business Tax Climates
    1  Wyoming (best in the country)
    2  South Dakota
    3  Nevada
    4  Alaska
    5  Florida
    6  Montana
    7  Texas
    8  New Hampshire
    9  Oregon
    10 Delaware

    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:
    http://www.taxfoundation.org/files/bp58-es.pdf 

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