Newsmax

The Tax Foundation has published its 2012 State Business Tax Climate Index, an analysis of tax climates across the country — and Wyoming tops the list as the state with the best tax environment for corporations.
The foundation compiles its index by considering five forms of taxation in the states: individual income tax, sales tax, corporate tax, property tax, and unemployment insurance tax, with income tax by far the largest consideration.
“It is true that taxes are but one factor in business decision-making,” the foundation observes. “Other concerns, such as raw materials or infrastructure or a skilled labor pool, matter, but a simple, sensible tax system can positively or negatively impact business operations with regard to these very resources.
“Furthermore, unlike changes to a state’s healthcare, transportation, or education system — which can take decades to implement — changes to the tax code can quickly improve a state’s business climate.”
Wyoming has no individual income tax or corporate tax, and a low sales tax. It is followed on the list of best states by Nevada and South Dakota, which also have no income tax or corporate tax; Alaska, which has no income tax or state-level sales tax; Florida, with no income tax; and New Hampshire, Washington, Montana, Texas, and Utah.
At the bottom of the list is New Jersey, with the third-worst income tax, the fifth-worst sales tax, second-worst property tax, and the 13th-worst corporate tax.
ew York is close behind with the second-worst income tax after California, followed by California, Vermont, Rhode Island, Minnesota, North Carolina, Wisconsin, Maryland, and Iowa.
“The lesson is simple: a state that raises sufficient revenue without one of the major taxes will, all things being equal, have an advantage over those states that levy every tax in the state tax collector’s arsenal,” the foundation notes in its report.
“It is important to remember that even in our global economy, states’ stiffest and most direct competition often comes from other states.
“This means that state lawmakers must be aware of how their states’ business climates match up to their immediate neighbors and to other states within their region.”