Written by JACKSON BRAINERD for NCSL
Wyoming and South Dakota topped the rankings for states’ business tax climate in the 2015 State Business Tax Climate Index released last week by the Tax Foundation, a Washington, D.C.-based think tank. The Index compares state’ tax systems in terms of their friendliness to business and conduciveness to economic development. The 2015 Index is based on the premise that taxes play an important role in where businesses choose to locate, and that states use their tax systems to compete with one another for those businesses. For that reason, the Index asserts that an analysis of state tax policy offers the best explanation for economic growth.