Ranked by the Tax Foundation
Every year the Tax Foundation publishes its “State Business Tax Climate Index,” which, according to foundation, “ranks how ‘business friendly’ the 50 state tax systems are, providing a roadmap for state lawmakers concerned with keeping their states tax competitive. . . . Keeping a state competitive in today’s global market can be difficult, but there is one factor lawmakers have direct control over: the quality of state tax systems. The index measures how well a state’s tax system encourages investment by maintaining a broad tax base and low rates.” Below are the 10 states that came in at the bottom of the Tax Foundation’s FY 2007 index, along with their FY 2006 ranking.
10. Minnesota
FY 2006 Rank: 12
9. Maine
FY 2006 Rank: 8
8. Iowa
FY 2006 Rank: 7
7. Nebraska
FY 2006 Rank: 6
6. California
FY 2006 Rank: 9
5. Vermont
FY 2006 Rank: 5
4. New York
FY 2006 Rank: 2
3. New Jersey
FY 2006 Rank: 3
2. Ohio
FY 2006 Rank: 4
1. Rhode Island
FY 2006 Rank: 1
