An executive looking to locate his company might do well to consider Wyoming. That state is the most business-friendly in the country, at least when it comes to taxes, according to a new study.
When all taxes that businesses pay are factored in, Wyoming's rate is less than half the national average, according to a Tax Foundation study released Wednesday. The state is one of three — Nevada and South Dakota are the others — without a corporate income tax.
Pennsylvania, meanwhile, wins the dubious distinction of imposing the heaviest tax burden on its businesses, with an overall effective rate that's 45% above the national average.
The study produced a separate ranking for state taxes on new firms. The rating factored in incentives such as tax credits for new jobs, investments and R&D, special property tax breaks. Nebraska came out on top by this measure. Hawaii finished last.
A separate IBD analysis compared job growth rates in states that performed best on both these tax measures with those that performed worst, and found that states with the lowest tax rates for new and existing businesses created 52% more jobs during the economic recovery than those states with the highest tax burdens.
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