The Tax Foundation has a new State Business Climate Tax Index showing that Wyoming has the most business-friendly tax climate and, surprise, surprise, New York has the worst. If you go to the bottom and click on the attached pdf file, you'll learn that Indiana is ranked No. 11, which ain't bad. The better news (for us, at least) is that nearby Ohio and Kentucky are both in the bottom 10.
Examples of companies choosing states due to favorable tax systems are plentiful. A recent example, from July 2005, is Intel's decision to build a multi-billion dollar chip making facility in Arizona due to its favorable corporate income tax system. California struggles to retain businesses within its borders because Nevada provides a low tax alternative. Anecdotes such as these reinforce what we know from economic theory, that taxes matter to businesses, and those places with the most competitive tax systems will reap the benefits of business friendly tax climates.
