So says the Tax Foundation, which just released its 2008 State Business Tax Climate Index, which takes a number of tax facts into considerations, weights them according to their affect on business and then ranks the states. Wyoming came out on top, while Rhode Island brings up the rear. Curtis Dubay, the study's co-author, said, "There's no question that states are competing with one another for companies, jobs and people. Taxes matter to businesses, and the states with better business tax climates will reap the rewards." The Tax Foundation notes that there are many aspects of the increasingly globalized economy that are out of a state government's control, but that this is not one of them. "The index measures how well a state's tax system encourages investment by maintaining a broad tax base and low rates," said the Tax Foundation. Chris Atkins is the other co-author. Rounding out the top five after Wyoming are South Dakota, Nevada, Alaska and Florida. The five least favorable business tax environments, moving up from the Rhode Island basement, are New Jersey, New York, California and Ohio.
State Business Tax Climate Index Rankings 2008
|
|
|
Corp.
|
Indiv.
|
Sls Tax
|
Unemp
|
Prop
|
|
|
Overall
|
Tax
|
IncmTax
|
Index
|
Tax
|
Tax Tax
|
|
State
|
Rank
|
Rank
|
Index
|
Rank
|
Rank
|
Rank
|
|
Alabama
|
21
|
21
|
19
|
25
|
12
|
12
|
|
Alaska
|
4
|
26
|
1
|
5
|
47
|
22
|
|
Arizona
|
25
|
24
|
26
|
45
|
3
|
10
|
|
Arkansas
|
35
|
35
|
29
|
37
|
18
|
16
|
|
California
|
47
|
40
|
50
|
42
|
15
|
5
|
|
Colorado
|
13
|
15
|
13
|
11
|
20
|
15
|
|
Connecticut
|
38
|
17
|
18
|
30
|
19
|
50
|
|
Delaware
|
9
|
48
|
32
|
2
|
7
|
7
|
|
Florida
|
5
|
14
|
1
|
19
|
2
|
18
|
|
Georgia
|
20
|
6
|
24
|
16
|
22
|
33
|
|
Hawaii
|
22
|
9
|
43
|
17
|
23
|
4
|
|
Idaho
|
31
|
19
|
34
|
34
|
44
|
2
|
|
Ilinois
|
28
|
29
|
12
|
32
|
42
|
40
|
|
Indiana
|
12
|
22
|
10
|
12
|
10
|
17
|
|
Iowa
|
45
|
45
|
45
|
20
|
37
|
31
|
|
Kansas
|
33
|
38
|
25
|
24
|
9
|
38
|
|
Kentucky
|
36
|
39
|
31
|
10
|
48
|
20
|
|
Loisiana
|
32
|
18
|
28
|
47
|
8
|
21
|
|
Maine
|
41
|
43
|
38
|
13
|
40
|
41
|
|
Maryland
|
24
|
7
|
37
|
7
|
30
|
39
|
|
Massachusetts
|
34
|
46
|
15
|
8
|
49
|
45
|
|
Michigan
|
29
|
49
|
14
|
14
|
45
|
25
|
|
Minnesota
|
42
|
44
|
39
|
40
|
39
|
19
|
|
Mississippi
|
18
|
8
|
16
|
35
|
5
|
32
|
|
Missouri
|
15
|
10
|
23
|
22
|
4
|
9
|
|
Montana
|
6
|
16
|
20
|
3
|
21
|
8
|
|
Nebraska
|
43
|
33
|
33
|
46
|
17
|
42
|
|
Nevada
|
3
|
1
|
1
|
43
|
41
|
13
|
|
New Hampshire
|
7
|
50
|
9
|
1
|
38
|
36
|
|
New Jersey
|
49
|
41
|
49
|
44
|
24
|
49
|
|
New Mexico
|
23
|
36
|
17
|
41
|
13
|
1
|
|
New York
|
48
|
2
|
41
|
49
|
46
|
43
|
|
North Carolina
|
40
|
25
|
44
|
39
|
6
|
34
|
|
North Dakota
|
30
|
27
|
36
|
29
|
26
|
6
|
|
Ohio
|
46
|
37
|
48
|
36
|
11
|
44
|
|
Oklahoma
|
19
|
13
|
22
|
31
|
1
|
24
|
|
Oreon
|
10
|
20
|
35
|
4
|
32
|
14
|
|
Pennsylvania
|
27
|
42
|
11
|
26
|
25
|
47
|
|
Rhode Island
|
50
|
34
|
47
|
33
|
50
|
48
|
|
South Carolina
|
26
|
11
|
27
|
18
|
43
|
29
|
|
South Dakota
|
2
|
1
|
1
|
38
|
33
|
11
|
|
Tennessee
|
16
|
12
|
8
|
48
|
31
|
35
|
|
Texas
|
8
|
47
|
7
|
28
|
14
|
27
|
|
Utah
|
17
|
5
|
30
|
27
|
28
|
3
|
|
Vermont
|
44
|
32
|
46
|
15
|
16
|
46
|
|
Virginia
|
14
|
4
|
216
|
29
|
23
|
|
|
Washington
|
11
|
31
|
1
|
50
|
36
|
28
|
|
West Virginia
|
37
|
28
|
40
|
21
|
35
|
26
|
|
Wisconsin
|
39
|
30
|
42
|
23
|
27
|
37
|
|
Wyoming
|
1
|
1
|
1
|
9
|
34
|
30
|
Source: Tax Foundation's State Tax Climate
