LAST WORD

Tax Time!

Here’s a look at the business taxation climates of each of the 50 states

Note: Map published October 9, 2013. Source: State Business Tax Climate Index

Best

THE 10 BEST STATES IN THIS YEAR’S INDEX ARE

1. WYOMING
2. SOUTH DAKOTA
3. NEVADA
4. ALASKA
5. FLORIDA
6. WASHINGTON
7. MONTANA
8. NEW HAMPSHIRE
9. UTAH
10. INDIANA

Worst

THE 10 LOWEST RANKED STATES IN THIS YEAR’S INDEX ARE

1. NEW YORK
2. NEW JERSEY
3. CALIFORNIA
4. MINNESOTA
5. RHODE ISLAND
6. VERMONT
7. NORTH CAROLINA
8. WISCONSIN
9. CONNECTICUT
10. MARYLAND

CHANGING CLIMATES

This 2014 Tax Index represents the tax climate of each state as of July 1, 2013, the first day of the standard 2014 state fiscal year. “The states that lost ground this year usually did so because they changed policy in a way that makes the tax code more complex, burdensome, or economically harmful,” says Tax Foundation economist Scott Drenkard. “By contrast, the states that improved did so because they are moving closer to a tax code that collects revenue without unnecessarily distorting business decisions. Their tax codes became more neutral.”