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2018 State Business Tax Climate Index

16 min readBy: Jared Walczak, Scott Drenkard, Joseph Bishop-Henchman

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Executive Summary

The TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Foundation’s State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare. While there are many ways to show how much is collected in taxes by state governments, the Index is designed to show how well states structure their tax systems, and provides a roadmap for improvement.

The 10 best states in this year’s Index are:

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

The absence of a major tax is a common factor among many of the top ten states. 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 taxA corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses, with income reportable under the individual income tax. , the individual income taxAn individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S. , or the sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. . Wyoming, Nevada, and South Dakota have no corporate or individual income tax (though Nevada imposes gross receipts taxA gross receipts tax, also known as a turnover tax, is applied to a company’s gross sales, without deductions for a firm’s business expenses, like costs of goods sold and compensation. Unlike a sales tax, a gross receipts tax is assessed on businesses and apply to business-to-business transactions in addition to final consumer purchases, leading to tax pyramiding. es); Alaska has no individual income or state-level sales tax; Florida has no individual income tax; and New Hampshire, Montana, and Oregon have no sales tax.

The 10 lowest ranked, or worst, states in this year’s Index are:

  1. Rhode Island
  2. Louisiana
  3. Maryland
  4. Connecticut
  5. Ohio
  6. Minnesota
  7. Vermont
  8. California
  9. New York
  10. New Jersey

This does not mean, however, that a state cannot rank in the top ten while still levying all the major taxes. Indiana and Utah, for example, levy all of the major tax types, but do so with low rates on broad bases.

The states in the bottom 10 tend to have a number of afflictions in common: complex, nonneutral taxes with comparatively high rates. New Jersey, for example, is hampered by some of the highest property taxA property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services. burdens in the country, is one of just two states to levy both an inheritance taxAn inheritance tax is levied upon an individual’s estate at death or upon the assets transferred from the decedent’s estate to their heirs. Unlike estate taxes, inheritance tax exemptions apply to the size of the gift rather than the size of the estate. and an estate taxAn estate tax is imposed on the net value of an individual’s taxable estate, after any exclusions or credits, at the time of death. The tax is paid by the estate itself before assets are distributed to heirs. , and maintains some of the worst-structured individual income taxes in the country.

Note: A rank of 1 is best, 50 is worst. Rankings do not average to the total. States without a tax rank equally as 1. DC’s score and rank do not affect other states. The report shows tax systems as of July 1, 2017 (the beginning of Fiscal Year 2017).
Source: Tax Foundation.
2018 State Business Tax Climate Index Ranks and Component Tax Ranks
Overall Rank Corporate Tax Rank Individual Income Tax Rank Sales Tax Rank Unemployment Insurance Tax Rank Property Tax Rank
Alabama 35 22 22 49 11 12
Alaska 3 26 1 5 25 38
Arizona 21 13 18 47 15 6
Arkansas 39 39 30 44 32 22
California 48 32 50 41 13 13
Colorado 18 18 15 39 35 14
Connecticut 44 31 37 27 19 49
Delaware 15 50 34 1 3 20
Florida 4 19 1 29 2 10
Georgia 36 10 42 28 38 23
Hawaii 27 14 31 23 27 16
Idaho 20 25 23 26 46 3
Illinois 29 36 16 35 42 45
Indiana 9 23 10 9 10 4
Iowa 40 48 33 19 34 39
Kansas 23 38 19 31 12 19
Kentucky 33 27 29 14 47 36
Louisiana 42 40 27 50 4 30
Maine 28 41 26 8 44 41
Maryland 43 20 46 18 24 42
Massachusetts 22 35 12 12 49 46
Michigan 12 8 14 11 48 21
Minnesota 46 43 45 25 37 28
Mississippi 24 11 20 38 5 35
Missouri 16 5 28 24 7 7
Montana 6 12 21 3 20 9
Nebraska 25 28 24 13 9 40
Nevada 5 33 1 42 45 8
New Hampshire 7 45 9 2 43 44
New Jersey 50 42 48 46 36 50
New Mexico 34 24 35 40 16 1
New York 49 7 49 43 30 47
North Carolina 11 3 13 20 6 32
North Dakota 30 16 36 34 14 2
Ohio 45 47 47 30 8 11
Oklahoma 32 9 38 36 1 15
Oregon 10 34 32 4 31 18
Pennsylvania 26 44 17 21 50 33
Rhode Island 41 30 39 22 23 43
South Carolina 37 15 41 32 29 24
South Dakota 2 1 1 33 39 25
Tennessee 14 21 8 45 22 29
Texas 13 49 6 37 26 37
Utah 8 4 11 17 21 5
Vermont 47 37 44 16 18 48
Virginia 31 6 40 10 41 31
Washington 17 46 6 48 17 27
West Virginia 19 17 25 15 28 17
Wisconsin 38 29 43 7 40 26
Wyoming 1 1 1 6 33 34
District of Columbia 47 26 43 34 30 45

Notable Ranking Changes in this Year’s Index

Arizona

Arizona concluded a multiyear phasedown of its corporate income tax rate, bringing the rate from 5.5 to 4.9 percent in 2017. Scheduled annual rate reductions began in 2015, and this year’s final reduction helped the state improve six places on the corporate income tax component, from 19th to 13th. The cuts have been aided by limitations on credits and other tax preferences, which have helped pay down rate reductions.

California

In 2012, California voters ratified Proposition 30, an initiated constitutional amendment which, among other changes, temporarily raised the sales tax rate from 7.25 to 7.5 percent and created four new income tax bracketA tax bracket is the range of incomes taxed at given rates, which typically differ depending on filing status. In a progressive individual or corporate income tax system, rates rise as income increases. There are seven federal individual income tax brackets; the federal corporate income tax system is flat. s with a top marginal rate of 13.3 percent. In 2016, voters approved a twelve-year extension of the income tax provisions, but the ballot measure (Proposition 55) permitted the sales tax increase to expire, with the state rate reverting to 7.25 percent. California also adopted a sizable increase in its cigarette tax, bringing the tax per pack from $0.87 to $2.87 and, coupled with local sales tax increases, dropping the state one place on the sales tax component of the Index.

Illinois

The Illinois legislature overrode the governor’s veto to adopt a budget which increased the state’s single-rate individual income tax from 3.75 to 4.95 percent, and the corporate income tax rate from 7.75 to 9.5 percent. Pass-through entities also pay a supplemental individual income tax of 1.5 percent (on the same base), known as the personal property replacement tax (PPRT), bringing the individual income tax rate for pass-through businessA pass-through business is a sole proprietorship, partnership, or S corporation that is not subject to the corporate income tax; instead, this business reports its income on the individual income tax returns of the owners and is taxed at individual income tax rates. es to 6.45 percent. A similar 2.5 percent PPRT is included in the state’s 9.5 percent corporate income tax rate. These rate increases caused the state to slip slightly in the rankings, to 29th overall.

Kansas

Recurring revenue shortfalls precipitated by a shortsighted package of tax cuts adopted in 2012 which, among other things, exempted all pass-through income from taxation, prompted legislators to add an additional bracket to the Kansas income tax and raise the top rate from 4.6 to 5.2 percent in an override of the governor’s veto. The additional bracket and higher rate, along with improvements in similarly-ranked states, dropped the state three places on the Index. Nevertheless, rates remain lower than they were before the 2012 cuts, and this year’s elimination of an exemption for pass-through income improves the neutrality of the state’s income tax code.

New Mexico

New Mexico continues to phase in corporate income tax rate reductions, with the rate scheduled to drop to 5.9 percent by 2018. This year’s reduction, from 6.6 to 6.2 percent, improved the state from 25th to 24th on the corporate tax component of the Index, and next year’s reduction will continue to enhance the state’s standing in comparison to its neighbors and further improve its corporate tax component score.

North Carolina

After the most dramatic improvement in the Index’s history in 2015—from 41st to 12th in one year—North Carolina has continued to improve its tax structure, and now imposes the lowest-rate corporate income tax in the country at 3 percent, down from 4 percent the previous year. This rate cut improves the state from 4th to 3rd on the corporate income tax component, the best ranking for any state that imposes a corporate tax. (Six states forgo corporate income taxes, but four of them impose economically distortive gross receipts taxes in their stead.) An individual income tax reduction, from 5.75 to 5.499 percent, improved the state’s individual income tax component rank from 15th to 13th. At 11th overall, North Carolina trails only Utah and Indiana among states which do not forgo any of the major tax types.

Rhode Island

Substantial reductions in minimum rates across all unemployment insurance tax schedules resulted in a dramatic improvement in Rhode Island’s ranking on the unemployment insurance component of the Index, from 50th to 23rd, and improved the overall ranking from 44th to 41st.

District of Columbia

In 2014, the District of Columbia began phasing in a tax reform package which lowered individual income taxes for middle-income brackets, expanded the sales tax baseThe tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority. A narrow tax base is non-neutral and inefficient. A broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates. , raised the estate tax exemptionA tax exemption excludes certain income, revenue, or even taxpayers from tax altogether. For example, nonprofits that fulfill certain requirements are granted tax-exempt status by the Internal Revenue Service (IRS), preventing them from having to pay income tax. , and reduced the corporate income tax rate. This year, the corporate rate saw a further reduction, from 9.2 to 9.0 percent, which improved the District from 28th to 26th on the corporate tax component of the Index.

Recent and Proposed Changes Not Reflected in the 2018 State Business Tax Climate Index

Arkansas

Arkansas repealed its InvestArk investment tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. , enhancing the neutrality of its corporate income tax. However, because the state still retained several smaller investment tax credits, the repeal of InvestArk alone does not improve Arkansas’s ranking on the Index. The state also removed repair parts (a business input) from the sales tax base, reducing tax pyramidingTax pyramiding occurs when the same final good or service is taxed multiple times along the production process. This yields vastly different effective tax rates depending on the length of the supply chain and disproportionately harms low-margin firms. Gross receipts taxes are a prime example of tax pyramiding in action. .

Hawaii

Hawaii voted to restore the higher rates and brackets associated with a temporary tax increase which had been allowed to expire a year ago, reestablishing three individual income tax brackets that had been eliminated and restoring the top marginal rate to 11 percent, up from 8.25 percent. However, this reversion will not take effect until the next calendar year, and will thus be reflected in the 2019 Index.

Indiana

Indiana saw consistent rate reductions through a series of responsible tax reform efforts between 2011 and 2016. Subsequent legislation established a further schedule of corporate income tax reductions through fiscal year 2022. For 2018, the corporate income tax rate declined from 6.25 to 6.0 percent. These changes, however, were not enough to improve Indiana’s already enviable ranking on the Index, where the Hoosier State and Utah are functionally tied for the best rankings among states which impose all the major taxes.

Maine

Maine adopted, and then repealed, a 3 percent surcharge on high earners in 2017, which would have resulted in a top marginal individual income tax rate of 10.15 percent, eclipsed only by California’s 13.3 percent top marginal rate. Because the tax has been repealed, it is not reflected in the Index. Had the tax remained in place, Maine would have fallen from 28th to 35th overall.

Mississippi

In 2016, Mississippi adopted legislation gradually phasing out the state’s capital stock tax, increasing the exemption in 2018 and reducing the rate by one-quarter mill per year between 2019 and 2028. The 3 percent individual and corporate income tax brackets are also scheduled for elimination. Once reductions begin, they will be reflected in the Index.

North Carolina

Building on prior years’ tax reform efforts, including rate reductions implemented this year, the North Carolina legislature adopted further reductions to both individual and corporate income tax rates, to take effect next year. The corporate income tax rate is scheduled to be reduced to 2.5 percent, while the state’s single-rate individual income tax rate will be set at 5.25 percent. These pending changes will be reflected in the next edition of the Index.

New Jersey

A multipronged tax package saw New Jersey’s sales tax rate decline from 7.0 to 6.875 percent while the gas taxA gas tax is commonly used to describe the variety of taxes levied on gasoline at both the federal and state levels, to provide funds for highway repair and maintenance, as well as for other government infrastructure projects. These taxes are levied in a few ways, including per-gallon excise taxes, excise taxes imposed on wholesalers, and general sales taxes that apply to the purchase of gasoline. increased from 14.5 to 37.1 cents per gallon. New Jersey also began to phase out its estate tax; it is currently one of only two states (along with Maryland) to levy both an estate and an inheritance tax. If New Jersey completes the repeal of its estate tax next year as anticipated, its rank can be expected to improve on the property tax component of the Index, where it currently ranks 50th.

New York

Three years ago, New York policymakers enacted a substantial corporate tax reform package that continues to phase in. This year, they reduced the capital stock tax rate from 0.125 to 0.1 percent, which was not enough, on its own, to yield a change in rank in the Index. The capital stock tax is on a path to repeal, which can be expected to produce improvements on the property tax component in future editions of the Index.

Tennessee

In 2016, Tennessee began phasing out its Hall income tax, a tax on interest and dividend income, though the state does not tax wage income. The Index includes this tax at a calculated rate to reflect its unusually narrow base. Initial reductions are too small to change any component rankings, but Tennessee’s rank will improve once the tax is fully phased out in 2022.

Note: A rank of 1 is best, 50 is worst. All scores are for fiscal years. DC’s score and rank do not affect other states.
Source: Tax Foundation.
State Business Tax Climate Index (2015–2018)
2015 Rank 2015 Score 2016 Rank 2016 Score 2017 Rank 2017 Score 2018 Rank 2018 Score Change from 2017 to 2018
Rank Score
Alabama 36 4.79 35 4.75 35 4.83 35 4.79 0 -0.04
Alaska 4 7.27 3 7.39 3 7.31 3 7.21 0 -0.10
Arizona 24 5.14 22 5.20 21 5.22 21 5.21 0 -0.01
Arkansas 40 4.60 41 4.50 38 4.59 39 4.59 -1 0.00
California 48 3.75 48 3.75 48 3.75 48 3.71 0 -0.04
Colorado 18 5.33 17 5.39 18 5.38 18 5.41 0 +0.03
Connecticut 43 4.44 43 4.34 43 4.32 44 4.32 -1 0.00
Delaware 11 5.63 11 5.68 15 5.51 15 5.51 0 0.00
Florida 5 6.84 4 6.89 4 6.85 4 6.86 0 +0.01
Georgia 38 4.69 39 4.60 36 4.66 36 4.69 0 +0.03
Hawaii 32 4.92 31 4.92 27 5.12 27 5.08 0 -0.04
Idaho 20 5.24 21 5.21 22 5.21 20 5.22 +2 +0.01
Illinois 35 4.86 26 5.10 28 5.12 29 4.99 -1 -0.13
Indiana 10 5.80 10 5.81 9 5.96 9 5.98 0 +0.02
Iowa 41 4.57 40 4.54 40 4.52 40 4.53 0 +0.01
Kansas 21 5.20 20 5.22 20 5.22 23 5.15 -3 -0.07
Kentucky 31 4.92 32 4.92 33 4.88 33 4.91 0 +0.03
Louisiana 34 4.86 36 4.72 42 4.35 42 4.37 0 +0.02
Maine 28 4.97 30 4.93 29 4.97 28 5.00 +1 +0.03
Maryland 42 4.47 42 4.39 41 4.35 43 4.36 -2 +0.01
Massachusetts 25 5.11 24 5.14 25 5.13 22 5.20 +3 +0.07
Michigan 13 5.59 13 5.60 12 5.64 12 5.64 0 0.00
Minnesota 47 4.16 46 4.19 46 4.19 46 4.21 0 +0.02
Mississippi 22 5.17 25 5.12 26 5.12 24 5.13 +2 +0.01
Missouri 16 5.44 18 5.38 16 5.44 16 5.44 0 0.00
Montana 6 6.33 6 6.31 6 6.28 6 6.28 0 0.00
Nebraska 23 5.16 23 5.15 24 5.14 25 5.10 -1 -0.04
Nevada 3 7.42 5 6.45 5 6.45 5 6.46 0 +0.01
New Hampshire 7 6.10 7 6.15 7 6.14 7 6.16 0 +0.02
New Jersey 50 3.49 50 3.42 50 3.42 50 3.35 0 -0.07
New Mexico 33 4.87 34 4.87 34 4.85 34 4.86 0 +0.01
New York 49 3.55 49 3.58 49 3.59 49 3.60 0 +0.01
North Carolina 12 5.59 12 5.67 11 5.72 11 5.76 0 +0.04
North Dakota 26 4.99 27 4.98 30 4.97 30 4.97 0 0.00
Ohio 44 4.25 45 4.23 45 4.27 45 4.24 0 -0.03
Oklahoma 29 4.96 33 4.91 31 4.94 32 4.91 -1 -0.03
Oregon 9 5.86 9 5.91 10 5.79 10 5.80 0 +0.01
Pennsylvania 30 4.96 28 4.97 23 5.15 26 5.08 -3 -0.07
Rhode Island 45 4.19 44 4.33 44 4.29 41 4.48 +3 +0.19
South Carolina 37 4.71 37 4.68 37 4.66 37 4.67 0 +0.01
South Dakota 2 7.54 2 7.45 2 7.46 2 7.47 0 +0.01
Tennessee 15 5.45 15 5.43 14 5.57 14 5.58 0 +0.01
Texas 14 5.52 14 5.60 13 5.62 13 5.61 0 -0.01
Utah 8 5.98 8 5.97 8 5.97 8 5.98 0 +0.01
Vermont 46 4.19 47 4.16 47 4.14 47 4.16 0 +0.02
Virginia 27 4.98 29 4.93 32 4.92 31 4.92 +1 0.00
Washington 17 5.37 16 5.43 17 5.43 17 5.42 0 -0.01
West Virginia 19 5.30 19 5.35 19 5.34 19 5.33 0 -0.01
Wisconsin 39 4.67 38 4.63 39 4.59 38 4.63 +1 +0.04
Wyoming 1 7.77 1 7.74 1 7.76 1 7.82 0 +0.06
District of Columbia 44 4.43 41 4.54 47 4.19 47 4.20 0 +0.01

Introduction

Taxation is inevitable, but the specifics of a state’s tax structure matter greatly. The measure of total taxes paid is relevant, but other elements of a state tax system can also enhance or harm the competitiveness of a state’s business environment. The State Business Tax Climate Index distills many complex considerations to an easy-to-understand ranking.

The modern market is characterized by mobile capital and labor, with all types of businesses, small and large, tending to locate where they have the greatest competitive advantage. The evidence shows that states with the best tax systems will be the most competitive at attracting new businesses and most effective at generating economic and employment growth. It is true that taxes are but one factor in business decision-making. Other concerns also matter—such as access to raw materials or infrastructure or a skilled labor pool—but a simple, sensible tax system can positively impact business operations with regard to these resources. Furthermore, unlike changes to a state’s health-care, transportation, or education systems, which can take decades to implement, changes to the tax code can quickly improve a state’s business climate.

It is important to remember that even in our global economy, states’ stiffest competition often comes from other states. The Department of Labor reports that most mass job relocations are from one U.S. state to another rather than to a foreign location.[1] Certainly, job creation is rapid overseas, as previously underdeveloped nations enter the world economy without facing the third highest corporate tax rate in the world, as U.S. businesses do.[2] State lawmakers are right to be concerned about how their states rank in the global competition for jobs and capital, but they need to be more concerned with companies moving from Detroit, Michigan, to Dayton, Ohio, than from Detroit to New Delhi. This means that state lawmakers must be aware of how their states’ business climates match up against their immediate neighbors and to other regional competitor states.

Anecdotes about the impact of state tax systems on business investment are plentiful. In Illinois early last decade, hundreds of millions of dollars of capital investments were delayed when then-Governor Rod Blagojevich proposed a hefty gross receipts tax.[3] Only when the legislature resoundingly defeated the bill did the investment resume. In 2005, California-based Intel decided to build a multibillion-dollar chip-making facility in Arizona due to its favorable corporate income tax system.[4] In 2010, Northrup Grumman chose to move its headquarters to Virginia over Maryland, citing the better business tax climate.[5] In 2015, General Electric and Aetna threatened to decamp from Connecticut if the governor signed a budget that would increase corporate tax burdens, and General Electric actually did so.[6] Anecdotes such as these reinforce what we know from economic theory: taxes matter to businesses, and those places with the most competitive tax systems will reap the benefits of business-friendly tax climates.

Tax competition is an unpleasant reality for state revenue and budget officials, but it is an effective restraint on state and local taxes. When a state imposes higher taxes than a neighboring state, businesses will cross the border to some extent. Therefore, states with more competitive tax systems score well in the Index, because they are best suited to generate economic growth.

State lawmakers are mindful of their states’ business tax climates, but they are sometimes tempted to lure business with lucrative tax incentives and subsidies instead of broad-based tax reform. This can be a dangerous proposition, as the example of Dell Computers and North Carolina illustrates. North Carolina agreed to $240 million worth of incentives to lure Dell to the state. Many of the incentives came in the form of tax credits from the state and local governments. Unfortunately, Dell announced in 2009 that it would be closing the plant after only four years of operations.[7] A 2007 USA TODAY article chronicled similar problems other states have had with companies that receive generous tax incentives.[8]

Lawmakers make these deals under the banner of job creation and economic development, but the truth is that if a state needs to offer such packages, it is most likely covering for an undesirable business tax climate. A far more effective approach is the systematic improvement of the state’s business tax climate for the long term to improve the state’s competitiveness. When assessing which changes to make, lawmakers need to remember two rules:

  1. Taxes matter to business. Business taxes affect business decisions, job creation and retention, plant location, competitiveness, the transparency of the tax system, and the long-term health of a state’s economy. Most importantly, taxes diminish profits. If taxes take a larger portion of profits, that cost is passed along to either consumers (through higher prices), employees (through lower wages or fewer jobs), or shareholders (through lower dividends or share value), or some combination of the above. Thus, a state with lower tax costs will be more attractive to business investment and more likely to experience economic growth.
  2. States do not enact tax changes (increases or cuts) in a vacuum. Every tax law will in some way change a state’s competitive position relative to its immediate neighbors, its region, and even globally. Ultimately, it will affect the state’s national standing as a place to live and to do business. Entrepreneurial states can take advantage of the tax increases of their neighbors to lure businesses out of high-tax states.

To some extent, tax-induced economic distortions are a fact of life, but policymakers should strive to maximize the occasions when businesses and individuals are guided by business principles and minimize those cases where economic decisions are influenced, micromanaged, or even dictated by a tax system. The more riddled a tax system is with politically motivated preferences, the less likely it is that business decisions will be made in response to market forces. The Index rewards those states that minimize tax-induced economic distortions.

Ranking the competitiveness of fifty very different tax systems presents many challenges, especially when a state dispenses with a major tax entirely. Should Indiana’s tax system, which includes three relatively neutral taxes on sales, individual income, and corporate income, be considered more or less competitive than Alaska’s tax system, which includes a particularly burdensome corporate income tax but no statewide tax on individual income or sales?

The Index deals with such questions by comparing the states on more than one hundred variables in the five major areas of taxation (corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and property taxes) and then adding the results to yield a final, overall ranking. This approach rewards states on particularly strong aspects of their tax systems (or penalizes them on particularly weak aspects), while also measuring the general competitiveness of their overall tax systems. The result is a score that can be compared to other states’ scores. Ultimately, both Alaska and Indiana score well.


[1] See, e.g., U.S. Department of Labor, “Extended Mass Layoffs, First Quarter 2013 ,” Table 10, May 13, 2013.

[2] Kyle Pomerleau, “Corporate Income Tax Rates Around the World, 2014,” Tax Foundation Fiscal Fact No. 436, Aug. 20, 2014.

[3] Editorial, “Scale it back, Governor,” Chicago Tribune, , Mar. 23, 2007.

[4] Ryan Randazzo, Edythe Jenson, and Mary Jo Pitzl, “Chandler getting new $5 billion Intel facility,” AZCentral.com, Mar. 6, 2013.

[5] Dana Hedgpeth & Rosalind Helderman, “Northrop Grumman decides to move headquarters to Northern Virginia,” The Washington Post, Apr. 27, 2010.

[6] Susan Haigh, “Connecticut House Speaker: Tax ‘mistakes’ made in budget,” Associated Press, Nov. 5, 2015.

[7] Austin Mondine, “Dell cuts North Carolina plant despite $280m sweetener,” TheRegister.co.uk, Oct. 8, 2009.

[8] Dennis Cauchon, “Business Incentives Lose Luster for States,” USA TODAY, Aug. 22, 2007.

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