Which States are Friendlier for Business Taxes?
With National Small Business Week here, let’s take a look at the Small Business Tax Index from the Small Business & Entrepreneurship Council. The SBE Council ranks the States according to how tax friendly they are to small businesses and entrepreneurs. It looks at 16 different tax measures, including: income, property, death/inheritance, unemployment, and consumption-based taxes such as state taxes on gas at the pumps.
SBE Council President & CEO Karen Kerrigan said: “Entrepreneurs and small businesses have to struggle every day with the costs of taxation, which affect a wide array of decisions, including hiring, investment, expansion and location. While the federal tax burden and the complexity of that system is quite heavy, state and local taxes can add significantly to that load. The ‘Business Tax Index‘ captures these tax costs, and provides businesses, investors and political leaders with a measurement of how the states stack up against each other in this regard.”
The 15 best state tax systems are:
- South Dakota
- Nevada
- Wyoming
- Washington
- Florida
- Alaska
- Texas
- Colorado
- Alabama
- Mississippi
- South Carolina
- Tennessee
- Missouri
- Ohio
- Virginia
The 15 worst state tax systems are:
- North Carolina
- Nebraska
- West Virginia
- Hawaii
- Idaho
- Vermont
- Massachusetts
- New York
- Rhode Island
- Maine
- Iowa
- California
- Minnesota
- New Jersey
- District of Columbia
Go to the interactive map to check out the status in your home state.
On a related note, according to the Tax Foundation, “Tax Freedom Day” occurs today, April 23 in 2008. Here is an excerpt from the report:
Tax Freedom Day had arrived later for the four previous years, but due to an expected slowdown in the nation’s economy and a massive one-time fiscal stimulus tax cut passed earlier this year, Tax Freedom Day is projected to arrive three days earlier this year compared to last year.
Do you see a relation between the business tax index and the tax freedom day?
