State tax bills can add up pretty fast for small business owners. Well, that is, unless your business is located in South Dakota, Texas or Nevada.
At least that's the assessment of the Small Business & Entrepreneurship Council, a group that lobbies on behalf of small companies on tax and other issues. The group has released a study that ranks U.S. states and the District of Columbia, according to how they tax people and companies.
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To come up with its rankings, the council considered a variety of state taxes including taxes on individual and corporate income, capital gains, property, sales, gas and Internet access. It also considered whether states have alternative minimum taxes and whether their personal tax brackets are indexed for inflation. Estate taxes also went into the mix.
The District of Columbia is the worst place when it comes to being taxed, according to the study. The three worst states are Minnesota, New Jersey and New York.
The council noted that states including Indiana, Arizona, Michigan, North Dakota, Delaware and Oklahoma have been taking steps toward easing their taxes, but that Oregon, Connecticut, Illinois and New York have been raising their taxes.