The newly released 2021 State Business Tax Climate Index by the Tax Foundation finds that the best places for job creators looking to grow or start a business are led by Republican governors. Designed to gauge the competitiveness of a state’s business environment, the report provides a strong indicator as to which states have the most attractive tax policies to lure in businesses and spur economic growth.
According to the Tax Foundation, 7 of the top 10 states with the best business tax climates are led by GOP chief executives, while 6 of the 10 worst are led by Democrats.
For the eighth year in a row, Wyoming earned the distinction as having the best business tax climate in the nation. Under Governor Mark Gordon, the Cowboy State has maintained the country’s lowest corporate and individual income tax rates. Also included in the top ten were four other GOP-led states which also do not have an individual income tax: South Dakota, Alaska, Florida, and New Hampshire. Utah and Indiana, both states with extremely competitive tax policies, have some of the lowest property tax rates in the nation.
The states exhibiting the worst tax climates include the familiar cadre of liberal governors who appear to be committed to driving businesses and workers out of their states with their tax-and-spend policies. Ranking dead last is New Jersey, which under Governor Phil Murphy has the highest income taxes in the nation, the fifth-highest property taxes, and the third-highest taxes on businesses. California and New York, which respectively have the 49th and 48th highest income taxes, rank slightly ahead of New Jersey in the Tax Foundation’s survey, while Connecticut and Minnesota round out the states with five worst business climates in America.
“The latest report from the Tax Foundation highlights the strong commitment by Republican governors across the nation to unleash the potential of America’s innovators and job creators,” said RGA Deputy Communications Director Mike Demkiw. “By fighting to keep taxes low on businesses and individuals, Republican governors are creating economic climates ripe for opportunity and success.”