Florida Among Most ‘Tax Friendly’ States

New York and New Jersey were the least tax friendly states in America, according to a listing by 24/7 Wall St., while Florida and Washington were among the “most friendly.”
The rankings were based on data obtained from Tax Foundation’s 2013 Stat State Business Tax Climate Index, the report said.

“Unemployment rates are from the Bureau of Labor Statistics for January 2013. State debt and revenue figures are from the Tax Foundation for fiscal 2011, the most recent available year. Income, poverty, employment composition, and state expenditure data are from the U.S. Census bureau, also from 2011,” it explained.

Here are the states with most and least favourable business tax climates, along with excerpts from 24/7 Wall St.:

Least tax friendly states

#1. New York
• Taxes collected per capita: $3,497 (8th highest)
• Unemployment: 8.4% (tied-12th highest)
• Corporate taxes collected per capita: $207 (8th highest)
• Sales tax rate: 4.0% (13th lowest)
“The Tax Foundation considers New York to have the worst business climate of all states. While the state actually ranked in the better half in terms of corporate taxes, its individual income tax policy was ranked the worst in the country.”

#2. New Jersey
• Taxes collected per capita: $3,085 (12th highest)
• Unemployment: 9.5% (tied-4th highest)
• Corporate taxes collected per capita: $252 (6th highest)
• Sales tax rate: 7.0% (tied-2nd highest)
“New Jersey scored near the bottom of all states in several different types of taxes. The state ranked second from the bottom in property taxes, third from the bottom in individual income taxes and fifth from the bottom in sales taxes.”

#5. Rhode Island
• Taxes collected per capita: $2,603 (18th highest)
• Unemployment: 9.8% (tied–the highest)
• Corporate taxes collected per capita: $141 (18th highest)
• Sales tax rate: 7.0% (tied-2nd highest)
“Rhode Island is the worst state in the nation for unemployment insurance taxes, which are paid by employers to support the states’ unemployment insurance programs.”

#7. North Carolina
• Taxes collected per capita: $2,332 (24th lowest)
• Unemployment: 9.5% (tied-4th highest)
• Corporate taxes collected per capita: $114 (25th highest)
• Sales tax rate: 4.75% (16th lowest)
“The state has the nation’s highest excise tax on gasoline sales at 37.5 cents per gallon. This is especially negative for businesses, according to the Tax Foundation, because gasoline is a necessity for many businesses.”

#10. Maryland
• Taxes collected per capita: $2,756 (15th highest)
• Unemployment: 6.7% (tied–20th lowest)
• Corporate taxes collected per capita: $134 (19th highest)
• Sales tax rate: 6.0% (tied-16th highest)
“Despite having the 10th-best business tax climate in the country, Maryland actually has a relatively high corporate tax rate. However, its rank for individual tax rates was the sixth-lowest of all states.”

Most tax friendly states

#5. Florida
• Taxes collected per capita: $1,718 (7th lowest)
• Unemployment: 7.8% (18th highest)
• Corporate taxes collected per capita: $99 (21st lowest)
• Sales tax rate: 6.0% (16th highest)
“Florida has no individual income tax. In addition, the state has a 5.5% flat corporate tax rate, lower than most states that levy one.”

#7. New Hampshire
• Taxes collected per capita: $1,761 (8th lowest)
• Unemployment: 5.8% (14th lowest)
• Corporate taxes collected per capita: $443 (2nd highest)
• Sales tax rate: none (the lowest)
“New Hampshire is one of just two states, along with Tennessee, that restrict personal income taxes to just interest and dividends. Additionally, New Hampshire is one of just five states that have no state-level sales tax.”

#9. Texas
• Taxes collected per capita: $1,696 (6th lowest)
• Unemployment: 6.3% (tied-16th lowest)
• Corporate taxes collected per capita: 0 (the lowest)
• Sales tax rate: 6.25% (13th highest)
“Texas is one of just seven states that have no individual income tax, all of which are among the most-friendly towards business. Outside of the individual income tax, however, Texas was rated poorly for many of its tax policies, including corporate taxes where it was rated 13th-worst.”

Read the original article here.

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