BUSINESS NEWS 

For Immediate Release                                       Contact: Monica Stewart

April 10, 2008                                                            (703)-242-5840

SBE Council's "Business Tax Index" Ranks State Tax Systems

Washington, D.C. - With April 15, "Tax Day," almost upon us, the Small Business & Entrepreneurship Council (SBE Council) published the "Business Tax Index 2008: Best to Worst State Tax Systems for Entrepreneurship and Small Business" today, ranking the states according to the costs of their tax systems for small business start up and growth.

SBE Council President & CEO Karen Kerrigan said: "Entrepreneurs and small businesses have to struggle every day with the costs of taxation, which affect a wide array of decisions, including hiring, investment, expansion and location. While the federal tax burden and the complexity of that system is quite heavy, state and local taxes can add significantly to that load. The ‘Business Tax Index' captures these tax costs, and provides businesses, investors and political leaders with a measurement of how the states stack up against each other in this regard."

(Read the full report by clicking here.)

(Visit the "Business Tax Index 2008" state interactive map by clicking here.)

SBE Council's "Business Tax Index 2008" pulls together 16 different tax measures, and combines those into one tax score that allows the 50 states and District of Columbia to be compared. Among the taxes included are income, property, death/inheritance, unemployment, and various consumption-based taxes, including state gas and diesel levies.

According to the "Business Tax Index 2008," the 15 best state tax systems are: 1) South Dakota, 2) Nevada, 3) Wyoming, 4) Washington, 5) Florida, 6) Alaska, 7) Texas, 8) Colorado, 9) Alabama, 10) Mississippi, 11) South Carolina, 12) Tennessee, 13) Missouri, 14) Ohio, and 15) Virginia.

The 15 worst state tax systems are: 37) North Carolina, 38) Nebraska, 39) West Virginia, 40) Hawaii, 41) Idaho, 42) Vermont, 43) Massachusetts, 44) New York, 45) Rhode Island, 46) Maine, 47) Iowa, 48) California, 49) Minnesota, 50) New Jersey, and 51) District of Columbia.

Raymond J. Keating, chief economist for SBE Council and author of the report, wrote: "In the end, taxes matter. They matter at the federal, state and local levels of government.  They matter to consumers, entrepreneurs, investors and businesses.  They matter in terms of a state's competitiveness.  And they matter when it comes to economic growth and job creation."

The "Business Tax Index 2008: Best to Worst State Tax Systems for Entrepreneurship and Small Business" can be read and downloaded from SBE Council's website at http://www.sbecouncil.org/.

SBE Council's "Business Tax Index 2008" (Best to Worst Tax Systems)

Rank               State                           Tax Score

1                 South Dakota               10.290

2                 Nevada                        12.656

3                 Wyoming                      14.665

4                 Washington                  15.949

5                 Florida                         22.530

6                 Alaska                          25.081

7                 Texas                           25.643

8                 Colorado                      26.990

9                 Alabama                       28.202

10               Mississippi                    29.633

11               South Carolina              29.767

12               Tennessee                    30.678

13               Missouri                       31.578

14               Ohio                             32.315

15               Virginia                         32.421

16               Oklahoma                    32.656

17               Arizona                        32.896

18               Georgia                        33.954

19               Illinois                           34.283

20               Michigan                      34.649

21               Indiana                         34.900

22               Delaware                      34.911

23               New Mexico                35.384

24               Arkansas                      35.395

25               Utah                             35.693

26               New Hampshire           35.743

27               Kentucky                     35.785

28               Pennsylvania                 36.591

29               Louisiana                      36.868

30               Maryland                      37.946

31               Montana                       38.249

32               Wisconsin                     38.486

33               Connecticut                  38.688

34               North Dakota               39.330

35               Kansas                         39.590

36               Oregon                         40.283

37               North Carolina              41.163

38               Nebraska                     41.294

39               West Virginia                42.092

40               Hawaii                          42.711

41               Idaho                           43.017

42               Vermont                       44.721

43               Massachusetts              45.380

44               New York                    45.687

45               Rhode Island                47.104

46               Maine                           49.379

47               Iowa                            49.421

48               California                      49.541

49               Minnesota                    51.320

50               New Jersey                  51.719

51               Dist. of Columbia          59.050

For more information or to schedule an interview, contact SBE Council at 703-242-5840. The SBE Council, a nonpartisan, nonprofit small business advocacy group, works to protect small business and promote entrepreneurship.

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