The Small Business and Entrepreneurship Council (SBEC)issued this week its 2009 Index of Best and Worst States for Entrepreneurship and Small Business.
According to the report, the Index pulls together 16 different tax measures, and combines those into one tax score that allows the 50 states and District of Columbia to be compared and ranked.
The 16 measures are: 1) state’s top personal income tax rate, 2) state’s top individual capital
gains tax rate, 3) state’s top corporate income tax rate, 4) state’s top corporate capital gains tax
rate, 5) any added income tax on S-Corporations, 6) whether or not the state imposes an
alternative minimum tax on individuals, 7) whether or not the state imposes an alternative
minimum tax on corporations, 8) whether or not the state’s personal income tax brackets are
indexed for inflation, 9) property taxes, 10) consumption-based taxes (i.e., sales, gross receipts
and excise taxes), 11) whether or not the state imposes a death tax, 12) unemployment tax, 13)
whether or not the state has a tax limitation mechanism, 14) whether or not the state imposes an
Internet access tax, 15) gas tax, and 16) diesel tax.
The report is full of useful information. While taxes are not the only factor in determining the Best or Worst State to Grow or Start a Business, they are a very important consideration.
The Best State for Small Business is South Dakota according to the Index. The next 4 in order are Nevada, Wyoming, Washington and Texas.
The Worst State for Small Business is New Jersey if you do not count D.C. Rounding out the Worst 5 States in order are Minnesota, Maine, California and New York.
The States are currently increasing many of their taxes to address deficit issues. Look for California and New York to rank even worse as they are loading up on all kinds of new taxes. Texas which ranks high in many studies is the best large state. Florida also has many attractive features and is ranked 6 in the study.
Go to the full report here for more info:
|1. South Dakota||11.10|
|11. South Carolina||29.42|
|25. New Hampshire||35.50|
|27. New Mexico||35.74|
|36. North Dakota||39.48|
|38. North Carolina||41.03|
|39. West Virginia||41.27|
|44. Rhode Island||45.64|
|46. New York||49.36|
|50. New Jersey||51.09|
|51.Dist. Of Columbia||58.32|