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Best (And Worst) States For Small Business

10 October 2009 No Comment

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)

  1. South Dakota
  2. Wyoming
  3. Alaska
  4. Nevada
  5. Florida

Worst States For Doing Business (in order)

  1. New Jersey
  2. New York
  3. California
  4. Ohio
  5. Iowa

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.

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