BUSINESS CLIMATE: Florida among best

Looking for good states to do business in?

Start with states that have no personal income tax, like Florida and Texas.

Wyoming, Nevada and South Dakota go one step better with neither corporate nor personal income taxes. Alaska has no personal income tax nor a state sales tax.

New Hampshire, Delaware, Oregon and Montana have no sales tax. As a report from the Tax Foundation states: "The lesson is simple; a state that raises sufficient revenue without one of the major taxes will, all things being equal, out-compete those states that have levied every tax in the state tax collector's arsenal."

Overall, Florida ranked fifth in the business climate survey. Georgia ranked 19th, largely due to a personal income tax and a lower ranking in unemployment insurance.

The report noted that high tax rates discourage investment, hiring and small business income growth.

Seven states have no personal income tax: Florida, Texas, Alaska, Nevada, South Dakota, Washington and Wyoming.

One of the highest taxing states for individuals and corporations is New Jersey. Not only is there a state income tax, but often there are local income taxes, too.

As the Tax Foundation report concluded, "States should strive to create tax systems that have a broad base and a low rate," systems that do not favor one business over another and keep the cost of complying with them low.

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