NCPA - National Center for Policy Analysis


October 12, 2007

The newly released 2008 State Business Tax Climate Index ranks how "business friendly" the 50 state tax systems are, providing a roadmap for state lawmakers concerned with keeping their states tax-competitive, says the Tax Foundation.

According to the Foundation:

  • The five most business friendly states are Wyoming, South Dakota, Nevada, Alaska and Florida.
  • Next on the list are Montana, New Hampshire, Texas, Delaware and Oregon.
  • At the opposite end of the spectrum are Rhode Island, New Jersey, New York, California and Ohio, the least business friendly states.
  • Following those are Iowa, Vermont, Nebraska, Minnesota and Maine.

"There's no question that states are competing with one another for companies, jobs and people," said study co-author Curtis Dubay.  "Taxes matter to businesses and the states with better business tax climates will reap the rewards."

Dubay added, "States need to constantly be on the lookout for ways to improve their business tax climates.  If they're standing still, they're losing ground to states actively improving their climates."

Source: "Which States Are Best for Business? The 2008 State Business Tax Climate Index," Tax Foundation, October 10, 2007.


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