The states of New York and New Jersey are the worst in the US for doing business, due to their taxation policies.
According to a study published by the Washington D.C. based Tax Foundation, New York and New Jersey are the worst in the country for doing business, as ranked by the State Business Tax Climate Index. New Jersey was ranked last amongst the 50 states, with New York following at 49th. The study aims to create an index to compare state tax policy by analysis of a state’s corporate, personal, sales, property unemployment insurance tax burdens.
The fall in rankings for the two states came during the country’s financial downturn, when state tax deficits forced a rise in personal taxation levels. According to Kail Padgitt, lead economist on the study, the top personal tax rate of 8.97% in New York “is more than 30 percent higher than its previous top marginal tax rate,” he went on to say “The state-local combined rate is the highest in the nation, because New York City also raised personal income taxes.” New Jersey’s corporate tax policy was highlighted as a strong reason for its low rankings, specifically the policy of implementing a US$100,000 threshold for its top corporate tax rate.
South Dakota was ranked as the top state overall, and was judged as having the best personal and corporate tax burden. Utah was the top state to implement all five forms of taxation, and was judged to be the 10th best state in regards to its tax burden.
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