When it comes to business, Washington isn’t so bad

Greater Spokane Incorporated recently posted this story on its online newsletter.
Washington State Ranks No. 11 for Business Friendly Tax System
March 07, 2007

(Spokane, Wash.) – The State of Washington recently ranked as the 11th best state with regards to how business-friendly the tax system is by The Tax Foundation, a non-partisan tax research organization based in Washington, D.C. The study “ranks the 50 states on how business-friendly their tax systems are, providing a roadmap for state lawmakers concerned with keeping their states tax-competitive.”

The criteria used to rate each state is based on competition and comparison between each of the states which indexes principal business tax, income tax, sales or gross receipts tax, unemployment insurance tax, and the state’s system for taxing assets.

According to the study, “companies will locate where they have the greatest competitive advantage. States with the best tax systems will be most competitive in attracting new businesses and be the most effective at generating economic and employment growth.” The study also suggests that although some jobs are moving overseas, state lawmakers need to be more concerned about businesses moving from state to state. “State lawmakers must be aware of how their state’s business climate matches up to their immediate neighbors and to other states within the region.”

West-side state neighbors California ranked no. 45, Idaho no. 32, and Oregon 10. The ten states with the most business-friendly tax systems include Wyoming, South Dakota, Alaska, Nevada, Florida, Texas, New Hampshire, Montana, Delaware, and Oregon. Least tax-friendly include Rhode Island, Ohio, New Jersey, New York, New Jersey, Vermont, California, Nebraska, Iowa and Maine.

For more information about the study visit www.taxfoundation.org.

Courtesy of Greater Spokane Incorporated.