Washington, D.C. – Today, the Small Business & Entrepreneurship Council (SBE Council) published the “Business Tax Index 2013: Best to Worst State Tax Systems for Entrepreneurship and Small Business.” The Index ranks the 50 states according to the costs of their tax systems for starting and growing a business. (To view the online interactive map with state highlights, please click here.)
Raymond J. Keating, chief economist for SBE Council and author of the report, said: “At the federal level, businesses, investors and entrepreneurship have been hit hard in 2013 by big tax increases. But taxes matter for business at the state and local level as well. In the states, tax burdens vary widely, with competitiveness affected accordingly.”
SBE Council’s “Business Tax Index 2013” pulls together 21 different tax measures, and combines those into one tax score that allows the 50 states to be compared and ranked. Among the taxes included are income, capital gains, property, death/inheritance, unemployment, and various consumption-based taxes, including state gas and diesel levies.
According to the “Business Tax Index 2013,” the 10 best state tax systems are: 1) Texas, 2) South Dakota, 3) Nevada, 4) Wyoming, 5) Washington, 6) Florida, 7) Alabama, 8) Colorado, 9) Ohio, and 10) Alaska.
The 10 worst state tax systems are: 41) Connecticut, 42) Oregon, 43) Minnesota, 44) New York, 45) Maine, 46) Vermont, 47) Iowa, 48) New Jersey, 49) Hawaii, and 50) California.