An important indicator of a state’s economic prosperity is how it treats businesses.
The Tax Foundation has released its annual index ranking how friendly the 50 states are to businesses. This index uses five criteria: individual income taxes, sales taxes, corporate income taxes, property taxes, and unemployment insurance taxes.
Top 5 Business-Friendly States:
- South Dakota
None of these top 5 states has an individual income tax.
Top 5 Worst States for Businesses:
- New Jersey
- New York
New Jersey, the worst state for businesses, suffers from a 5.91% property tax – the highest in the nation – as well as dual inheritance and estate taxes.
States that rank highest on this index have higher economic growth and lower unemployment than low-ranking states. The less a state punishes the creation of wealth, the more prosperity the state and its citizens enjoy.
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