With only two months left before the year ends, businesses and investors are already busy looking for a new place for expansion, and on top of their consideration is the business tax.
Just last September, the Tax Foundation, an independent research group based in Washington, D.C., published a list of the best and worst states for business in 2017. The report ranked states based on their tax systems as of July 1, 2016 which marks the beginning of fiscal year 2017 in the U.S. Unsurprisingly, topping the list are Wyoming, South Dakota and Alaska.
The three states are said to offer the most favorable tax systems in whole country, and for some fair reasons – they need to create more local jobs by attracting businesses and investors.
“Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes: the corporate income tax, the individual income tax, or the sales tax. Wyoming, Nevada, and South Dakota have no corporate or individual income tax (though Nevada imposes gross receipts taxes); Alaska has no individual income or state-level sales tax…” according to Tax Foundation’s website.
Other states that made it to the tax think tank’s list are Florida, Nevada, Montana, New Hampshire, Indiana, Utah and Oregon. Absence of a major tax is noted to be a common factor among the states in the top ten. While many of us dread the monthly tax deduction from our salaries, workers in Florida enjoy zero taxation in their individual income tax. Likewise, shoppers in New Hampshire, Montana and Oregon enjoy cheaper price for all commodities due to the absence of sales tax in their respective states.
Meanwhile, the states at the bottom 10 include Louisiana, Maryland, Connecticut, Rhode Island, Ohio, Minnesota, Vermont, California and, unsurprisingly, New York and New Jersey. Tax Foundation ranked the states low for their “complex, non-neutral taxes with comparatively high rates.”