The Small Business and Entrepreneurship Council released their annual Business Tax Index report that ranks the various states from best to worst based on the state tax systems. As we expected, Nevada ranked very high, within a fraction of a point of 1st place for the “Best Small Business Tax Structure”.
The 5 Best States, and their index scores are:
- South Dakota, 11.12
- Nevada, 11.87
- Wyoming, 14.14
- Washington, 15.79
- Texas, 22.42
The Index calculates the score of each state based on 16 different taxes that impact small business and entrepreneurship. As you can see, South Dakota and Nevada are neck-in-neck for the top spot.
Of the 16 taxes, Nevada ranked #1 in the following categories:
- Personal Income Tax
- Capital Gains Tax
- Corporate Income Tax
- Corporate Capital Gains Tax
- S Corporation Tax
- Individual Alternative Minimum Tax
- Corporate Alternative Minimum Tax
- Death Tax
- New Tax Limitations
- Internet Tax
The 5 Worst States in the Index are:
51. District of Columbia, 58.31 (It’s hardly a surprise that DC, run by Congress as it is, ranks dead last for tax friendliness).
50. New Jersey, 51.09
49. Minnesota, 50.79
48. Maine, 49.86
47. California, 49.68
Now, I don’t want to start a political discussion, but looking at the bottom-feeders of this report, you have to ask yourself, “What do these states have in common?”
