State Business Tax Climate Index: An Executive Summary

Wyoming, New Hampshire, Nevada, Colorado, and Alaska are the five states found to have tax systems most conducive to new and expanding businesses, while Nebraska, Ohio, Arkansas, California and Mississippi have the five least hospitable tax systems.

The Tax Foundation’s http://www.taxfoundation.org/ new State Business Tax Climate Index measures the "tax-friendliness" to business of each state’s tax system.

The most competitive tax systems are usually found in states that raise sufficient tax revenue without one of the major taxes on sales, personal income or corporate income. The least competitive are found in states with complex, multi-rate corporate and individual tax codes; above-average sales tax rates that exempt few business input items; high overall state
tax burdens and revenues that have grown faster than citizens’ incomes; and tax codes that impose considerable compliance costs on businesses.

Click to read the full study: http://www.taxfoundation.org/bp41.pdf

http://www.taxfoundation.org/businesstaxclimate.html