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FOR IMMEDIATE RELEASE
April 15, 2014
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703-242-5840

SBE Council’s “Small Business Tax Index 2014” Ranks State Tax Systems

Contact:  Raymond J. Keating, rkeating@sbecouncil.org

703-242-5840 or 631-909-1122

Washington, D.C. – Today, the Small Business & Entrepreneurship Council (SBE Council) published its 5th annual state tax rankings: “Small Business Tax Index 2014: Best to Worst State Tax Systems for Entrepreneurship and Small Business.”  The index ranks the 50 states according to the costs of their tax systems for entrepreneurship and small business.

Karen Kerrigan, President & CEO of SBE Council, observed: “Tax day is an ideal day for elected officials and policymakers to reflect upon tax competitiveness – especially how tax systems impact startups, entrepreneurship and small business growth. Now, more than ever, entrepreneurs and businesses are placing greater weight on state policies when considering a location for startup or expansion. Taxes are a priority issue, and tax-friendly states are much more appealing for entrepreneurs.”

SBE Council's “Small Business Tax Index 2014” pulls together 21 different tax measures, and combines those into one tax score that allows the 50 states to be compared and ranked.

SBE Council’s “Small Business Tax Index 2014” pulls together 21 different tax measures, and combines those into one tax score that allows the 50 states to be compared and ranked.  Nevada, South Dakota, Texas, Wyoming, Washington are the top-ranked states.

Raymond J. Keating, chief economist for SBE Council and author of the report, said: “The tax story for entrepreneurs, businesses, investors and the economy does not end at the federal level. All taxes matter, whether imposed at the federal, state or local level of government.  The tax environment varies widely by state, and small business owners have taken notice.”

Keating added: “Some states are situated well from a competitive tax standpoint, with others moving in the right direction. For example, states like North Carolina, North Dakota, Kansas, Arizona, New Mexico and Indiana have improved their tax climates and/or are in the midst of doing so.  The leaders in these states understand that a competitive and business-friendly tax system is important to attracting investment, startups and company relocation.”

SBE Council’s “Small Business Tax Index 2014” pulls together 21 different tax measures, and combines those into one tax score that allows the 50 states to be compared and ranked. Among the taxes included are income, capital gains, property, death, unemployment, and various consumption-based taxes, including state gas and diesel levies.

According to the “Small Business Tax Index 2014,” the 15 best state tax systems are:

1) Nevada, 2) South Dakota, 3) Texas, 4) Wyoming, 5) Washington, 6) Florida, 7) Alabama, 8) Ohio, 9) Colorado, 10) Alaska, 11) Indiana, 12) Michigan, 13) Arizona, 14) North Dakota, and 15) Utah.

The 15 most inhospitable state tax systems for small business are:

36) Delaware, 37) Wisconsin, 38) Idaho, 39) Rhode Island, 40) Nebraska, 41) Connecticut, 42) Oregon, 43) Vermont, 44) Maine, 45) New York, 46) Iowa, 47) Hawaii, 48) New Jersey, 49) Minnesota, and 50) California.

Keating concluded: “In the end, if the tax burden is light on economic risk taking, then that will be good news for entrepreneurship, businesses, investment, economic growth and job creation in each state. States ranking poorly have a great deal of work to do to make themselves competitive from a tax standpoint.”

Get complete state rankings and read SBE Council’s here: “Small Business Tax Index 2014.”

SBE Council is a nonpartisan, nonprofit advocacy, research and education organization dedicated to protecting small business and promote entrepreneurship.  For more information please visit www.sbecouncil.org. Follow: @SBECouncil 

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