According to Tax Foundation, the 10 least business-friendly states in 2017 have earned this designation because of their complex tax codes and high tax rates.
Earlier this month, Dentist’s Money Digest reported on the 10 Most Tax-Friendly States for Business. The practice owners among our readership have certain advantages in these states, which earned high marks from Tax Foundation, a politically independent organization that researches tax policy. Tax Foundation has been providing this analysis since 1937.
Tax Foundation comes up with an annual index of the most and least business-friendly states in the country. The top 10 had one thing in common: each has eliminated one or more of the major taxes, which, according to the foundation, are corporate income, individual income or sales tax.
Unfortunately, the practice owners in the states at the bottom of Tax Foundation’s list aren’t so lucky. The 10 least business-friendly states earned their spots for myriad reasons. Among them, “complex, non-neutral taxes with comparatively high rates.” New Jersey, Tax Foundation points out as an example, is one of two states that charges an inheritance tax in in addition to an estate tax.
Click to the next page to see the rankings, starting with number 41.
· Tax Foundation notes that Louisiana recently hiked the state sales tax by a penny, bringing the state rate from 4 to 5 percent.
· Louisiana ranks among the five states with the lowest property tax burden, according to WalletHub.
· In 2010, Northrup Grumman relocated from Virginia to Maryland, citing the more favorable business tax climate as its reason, according to Tax Foundation.
· Maryland was the second most charitable state in 2015, according to WalletHub.
· Tax Foundation notes that General Electric and Aetna threatened to leave the state in 2015 if the governor approved a budget that raised corporate taxes. GE made good on its threat.
· Connecticut ranks among WalletHub’s seven worst states for retirement.
44. Rhode Island
· Its tax structure isn’t just unfriendly to business. Rhode Island also made WalletHub’s ranking of seven worst states for retirement.
· Tax Foundation notes that states like Ohio need to be concerned about the tax climate of their immediate neighbors, which can lure businesses away.
· Ohio is among the 12 states with the highest shortages of dentists.
· It may leave much to be desired, with regard to its business tax climate, but Minnesota does rank among America’s 10 happiest states.
· It’s not hospitable to businesses, Tax Foundation says, and it’s also not a great place to retire, according to WalletHub.
· Intel built chip-making facility in Arizona instead of California in 2005. The reason? The tax climate in Arizona. The state has a more favorable corporate income tax system, Tax Foundation says.
· California also made this ranking of 8 states with the highest healthcare costs.
49. New York
· New York has climbed in the rankings over the last two years due to corporate tax reforms, Tax Foundation notes.
· New York also makes the list of the 12 states with the largest dentist shortages.
50. New Jersey
· With high property taxes, and the double whammy of an inheritance tax and an estate tax, New Jersey claims the bottom spot, according to Tax Foundation.
· New Jersey also made this list of 8 states with the highest healthcare costs.