Best (And Worst) States For Small Business
The non-partisan Tax Foundation recently did a study to determine what the best states were for doing business. The findings aren’t that surprising in my opinion.
Best States For Doing Business (in order)
- South Dakota
Worst States For Doing Business (in order)
- New Jersey
- New York
These rankings were compiled based on the tax environment which can either encourage or discourage business activity. According to this organization:
The ideal tax system, whether at the local, state or federal level, is simple, transparent, stable, neutral to business activity, and pro-growth.
The study also cites that unfriendly tax environments for businesses will likely result in those businesses moving to more friendly environments. This is the most important thing to note regarding a study like this. This can also be extended to a national level comparing the United States to other countries, and the pro-business environment of both us and the rest of the world. Where is business migrating to? If you look at a previous post regarding Wriston’s Law you’ll see that talent and capital tend to migrate to where it is most accepted and welcomed. I wish more people would understand this concept.