Tax study ranks most business-friendly states; Maryland 29th

WASHINGTON, Oct. 16, 2006 — The State Business Tax Climate Index ranks how “business friendly” the 50 state tax systems are, providing a roadmap for state lawmakers concerned with keeping their states tax competitive.

Since 2003, significant changes in a state's ranking, such as New Mexico and Maryland, reflect positive and negative changes in their state's tax system.

Maryland ranks 29th in the Index, down four spots from last year's survey.

View the complete rankings here.

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.

“Labor and capital are more mobile than ever,” says Chris Atkins, staff attorney and co-author of the Index. “In the global competition for jobs, no state can afford to be saddled with a tax system that unduly punishes new business investment.”

Rankings

The ten best states in the Tax Foundation’s 2007 State Business Tax Climate Index are as follows:

1. Wyoming
2. South Dakota
3. Alaska
4. Nevada
5. Florida
6. Texas
7. New Hampshire
8. Montana
9. Delaware
10. Oregon

The ten worst states in the Tax Foundation’s 2007 State Business Tax Climate Index are:

41. Minnesota
42. Maine
43. Iowa
44. Nebraska
45. California
46. Vermont
47. New York
48. New Jersey
49. Ohio
50. Rhode Island