WASHINGTON D.C. – The state of Wyoming has been found to have the most business-friendly tax system in the USA, while the state of New York has been ranked as the lowest.
On October 9th the think tank Tax Foundation released its annual State Business Tax Climate report, showing that the states with the best environments for businesses are currently Wyoming, South Dakota, and Nevada, mainly because each state does not levy its own corporate or personal income tax.
The ranking given to each state is based on the relative tax burden faced by businesses operating in the region, and the comparative complexity of meeting tax obligations in that state.
The worst states in the country for doing business are New York, New Jersey and California, as each state imposes high tax rates, and has an excessively complicated and non-neutral tax system which may inhibit business activity.
The report is intended to provide an independent and comparative overview of states’ tax systems to policy makers and businesses, when making decisions influenced by taxation.