February 27th, 2006 - WASHINGTON – A leading non-partisan, tax education foundation has tabbed Wyoming as the number one business friendly tax system in the nation. The Tax Foundation, founded in Washington in 1937, released its third annual “State Business tax Climate Index” today. The study ranks the 50 states on how “business friendly” their tax systems are and provides a roadmap for state lawmakers concerned with keeping their states tax-competitive.
“Wyoming is a revered place right now. We have a large budget surplus, we continue to be one of the few states without a state income tax, and we need to capitalize on our strengths. In order to drive an increasingly diverse economy, we need to showcase our state as the place to do business,” Thomas said.
“As we continue efforts to infuse more technology into our energy industries, we must make a concerted effort to give our young people the quality of life they deserve.”
Thomas, who is a member of the Senate Finance Committee, said that today’s tax-friendly ranking is good for the future of Wyoming. “We’ve been trying for years to break Wyoming out of the boom-and-bust cycle that has characterized our state’s energy economy. Now, with a variety of companies looking to do business in Wyoming, we have a very real chance to solidify our economic foundation.”
The goal of the Foundation’s index is to focus lawmakers on good tax fundamentals in their states, rather than short-term tax abatements and exemptions designed to temporarily lure high-profile companies. The overall index is composed of five specific indexes devoted to major features of a state’s tax system. Each state’s laws and tax collections were assessed as of the beginning of the 2006 fiscal year, which for the states was July 1, 2005.
The ten states with the most business-friendly tax systems this year are: Wyoming, South Dakota, Alaska, Florida, Nevada, New Hampshire, Texas, Delaware, Montana and Oregon.
The ten states with the least hospitable business tax climates are: New York, New Jersey, Rhode Island, Ohio, Vermont, Maine, Kentucky, Nebraska, Iowa and Arkansas.
The study can be accessed on the Web at: http://www.taxfoundation.org/publications/show/78.html
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