NJ & NY Ranked Worst Tax Climates For Business

According to the Tax Foundation–a Washington D.C. based research firm–New Jersey & New York Sates were ranked the worst climates in the United States for business.

The Tax Foundation’s “State Business Tax Climate Index” compares the 50 states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property.

New Jersey took the last place among 50 states in terms of business friendliness. New Jersey scored at the bottom by having the third-worst individual income tax, the fifth-worst sales tax, the 13th-worst corporate tax, and the second-worst property tax. The report said New Jersey’s and local tax burden percentage has consistently ranked among the nation’s highest, currently estimated at 12.2 percent of income (first nationally), above the current national average of 9.8 percent.

The report also said New Jersey taxpayers receive less federal funding per dollar of federal taxes paid than any other state, making the Garden State the nation’s biggest “donor state.” Per dollar of federal tax paid in 2005, New Jersey citizens received $0.61 in the way of federal spending.

New York was ranked at No. 49, beating only New Jersey. New York had the second-worst individual income tax, fifth-worst unemployment insurance tax and sixth-worst property tax.

During the past three decades, New York’s state and local tax burden percentage has ranked among the nation’s highest, currently estimated at 12.1 percent of income (second nationally), above the current national average of 9.8 percent.

The 10 lowest ranked, or worst, states in the 2012 Index are Iowa (No. 41), Maryland (No. 42), Wisconsin (No. 43), North Carolina (No. 44), Minnesota (No. 45), Rhode Island (No. 46), Vermont (No. 47), California (No. 48), New York (No. 49), and New Jersey (No. 50).

On the other hand, the 10 best states are Wyoming (No. 1), South Dakota (No. 2), Nevada (No. 3), Alaska (No. 4), Florida (No. 5), New Hampshire (No. 6), Washington (No. 7), Montana (No. 8), Texas (No. 9), and Utah (No. 10).

 Source: Insurance Journal