State Tax Competitiveness

Wyoming has the nation's best tax climate for businesses, while Rhode Island has the worst, according to a new study.

The study, conducted by the Tax Foundation, a nonpartisan research group based in Washington, focused on five major areas: income taxes, business taxes, sales taxes, unemployment taxes, and property taxes.

The rankings consider not only on how high taxes are, but also on how they are implemented. According to the study's authors, a good tax system levies low, flat rates across a broad base, treating all taxpayers the same.

A system that unevenly taxes different industries, on the other hand, is less favorable, because it makes it less likely that business decisions will be made in response to market forces.

Top-ranked Wyoming was followed by South Dakota, Alaska, Nevada, and Florida. Wyoming, Nevada, and South Dakota have no corporate or individual income tax; Alaska has no individual income or state-level sales tax; and Florida has no individual income tax.

Read more here.