04/20/2018

News

Small Business Tax Index 2017: Best to Worst State Tax Systems for Entrepreneurship and Small Business

The Small Business & Entrepreneurship Council’s “Small Business Tax Index 2017” ranks the states from best to worst in terms of the costs of their tax systems on entrepreneurship and small business. This year’s edition of the Index pulls together 26 different tax measures, and combines those into one tax score that allows the 50 states to be compared and ranked.

The 26 measures are: 1) state’s top personal income tax rate, 2) state’s top individual capital gains tax rate, 3) state’s top tax rate on dividends and interest, 4) state’s top corporate income tax rate, 5) state’s top corporate capital gains tax rate, 6) any added income tax on S-Corporations, 7) any added income tax on LLCs, 8) Section 179 expensing conformity, 9) average local personal income tax rate, 10) whether or not the state imposes an alternative minimum tax on individuals, 11) whether or not the state imposes an alternative minimum tax on corporations, 12) whether or not the state’s personal income tax brackets are indexed for inflation, 13) whether or not the state’s corporate income tax brackets are indexed for inflation, 14) the progressivity of the state’s personal income tax brackets, 15), the progressivity of the state’s corporate income tax brackets,16) property taxes, 17) consumption-based taxes (i.e., sales, gross receipts and excise taxes), 18) whether or not the state imposes a death tax, 19) unemployment taxes, 20) whether or not the state has a tax limitation mechanism, 21) whether or not the state imposes an Internet access tax, 22) remote seller taxes, 23) gas tax, 24) diesel tax, 25) wireless taxes, and 26) LLC fees.

The 15 best state tax systems are: 1) Nevada, 2) Texas, 3) South Dakota, 4) Wyoming, 5) Washington, 6) Florida, 7) Alabama, 8) Ohio, 9) North Carolina, 10) Colorado, 11) Arizona, 12) Alaska, 13) Michigan, 14) Indiana, and 15) Utah. The 15 worst state tax systems are: 36) Delaware, 37) Arkansas, 38) Maryland, 39) Nebraska, 40) Kentucky, 41) Connecticut, 42) Oregon, 43) New York, 44) Vermont, 45) Hawaii, 46) Iowa, 47) Minnesota, 48) Maine, 49) New Jersey, and 50) California.

Research & Studies
Read More

Small Business Policy Index 2013: Ranking the States on Policy Measures and Costs Impacting Small Business and Entrepreneurship

SBE Council has published the state Index for 18 years, which ranks the 50 states according to 47 different policy measures, including a wide array of tax, regulatory and government spending measurements. – See more at: http://www.sbecouncil.org/2013/12/12/sbe-council-ranks-the-50-states-in-small-business-policy-index-2013/#sthash.aygbaj8z.dpuf

Research & Studies
Read More