2010 Business Tax Index Ranks Missouri Ahead of Kansas

Amid the calls for job creation incentives, access to capital, increased federal procurement opportunities and other measures to help small businesses “get back into the game,” the Small Business & Entrepreneurship Council (SBE Council) has published its annual 2010 Business Tax Index.

The Business Tax Index 2010: Best to Worst State Tax Systems for Entrepreneurship and Small Business ranks the 50 states and the District of Columbia according to the costs of their tax systems for entrepreneurship and small business.

The Business Tax Index 2010 draws on and combines 16 different tax measures into one tax score for each state and the District of Columbia. Taxes considered are income, capital gains, property, death/inheritance, unemployment, and various consumption-based taxes, including state gas and diesel levies.

So, where do Kansas and Missouri fall on the Index? Missouri comes within spitting distance of the 10 best state tax systems at number 16; Kansas, on the other hand, at number 32, is within a stone’s throw of landing near the bottom of the list.

The 10 best state tax systems are: 1) South Dakota, 2) Texas, 3) Nevada, 4) Wyoming, 5) Washington, 6) Florida, 7) Alabama, 8)Alaska, 9) Ohio, and 10) Colorado.

The 10 worst state tax systems are: 42) Massachusetts, 43) Oregon, 44) Vermont, 45) Iowa, 46) Maine, 47) New York, 48) California, 49) Minnesota, 50) New Jersey, and 51) District of Columbia.

Unfortunately, many states have had to raise taxes or create new ones just to stay in business themselves. The situation is a Catch 22 in many respects. On the one hand, more and higher taxes are just another grenade that’s being lobbed at still shell-shocked businesses fighting to survive in this economy. Businesses would argue that if they could be left alone to recover and put people to work, governments would see their tax rolls increase. Further, low taxes can be an incentive for businesses to relocate to states with more competitive rates, again increasing the tax base. On the other hand, like the businesses themselves, local and state entities need money now, in many cases, and can’t wait for the business community to recover.

For the full report, visit http://www.sbecouncil.org/businesstaxindex2010/

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About Smart Companies Thinking Bigger®

Kelly Scanlon is the owner and publisher of Thinking Bigger Business Media. She recently finished a term on the national board of directors of the National Association of Women Business Owners, and was the national chair from 2010-2011. An advocate for small business owners, Kelly sits on numerous boards and committees to advocate on behalf of small business owners. She has won several awards for her advocacy. Among them are the 2011 United Nations NGO Positive Peace Award on behalf of Kansas City area small business owners, the U.S. Small Business Administration's Region VII Women's Business Champion of the Year in 2009, and the Women in Business Advocate of the Year from the State of Kansas in 2006. In 2002, she won the SBA's Region VII Small Business Journalist of the Year Award (Missouri, Iowa, Nebraska, Kansas). Whatever your business stage—aspiring, startup, established, mature—Thinking Bigger Business Media has the resources you need to grow to the next level. We are a resource organization dedicated to providing the strategic, "how-to" information small business owners need to become more productive and more profitable. We also provide information that helps owners connect with resources within the business community that can help them grow. We deliver that information through a variety of media products and other channels easily accessible to business owners.
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