#1 South Dakota
SBPI Score: 35.378

According to South Dakota’s official travel website, Mount Rushmore National Memorial “is our nation’s Shrine of Democracy.” The faces of Presidents George Washington, Thomas Jefferson, Theodore Roosevelt and Abraham Lincoln grace this well-know national landmark. South Dakotans also can take pride in the fact that their state stands out as a monument of sound policymaking. It offers the best public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” In particular, South Dakota’s entrepreneurs, businesses, investors and workers benefit from no personal and corporate income and capital gains taxes; no death tax; imposing the lightest regulatory burdens on energy; a low crime rate; and a low level of state and local government spending. Among the few negatives are high consumption-based taxes.

South Dakota Policy Highlights:

Positives:
• No individual income and capital gains taxes
• No corporate income and capital gains taxes
• No death tax
• Lightest regulatory burden on energy
• Low crime rate
• Low level of state and local government spending
• Right-to-work state

Negatives:
• High consumption-based taxes

#2 Nevada
SBPI Score: 36.628

In 1931, Nevada became the first state to legalize most forms of casino gambling. Some say that was a chancy roll of the dice for the state’s economy. A sure economic bet is the fact that Nevada has the second best public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” For example, Nevada’s entrepreneurs, businesses, investors and workers benefit from no personal and corporate income and capital gains taxes; no death tax; the second lowest wireless taxes; the lowest level of state and local government workers; and a low level of government spending. Among the few negatives are high consumption-based taxes.

Nevada Policy Highlights:

Positives:
• No individual income and capital gains taxes
• No corporate income and capital gains taxes
• No death tax
• Low wireless taxes
• Lowest level of state and local government workers
• Low level of state and local government spending
• Right-to-work state

Negatives:
• High consumption-based taxes

#4 Wyoming
SBPI Score: 46.668

According to WyomingTourism.com, “Old Faithful in Wyoming’s Yellowstone National Park is undoubtedly the world's most recognizable geyser and was aptly named by an 1870 expedition for its remarkable consistency.” Consistency also can be a good thing when it comes to governmental policies affecting business and the economy. That is the case with Wyoming as its consistency in sound policy makes the state the fourth best public policy climate for entrepreneurship and small business, according the 2014 “Small Business Policy Index.” Entrepreneurs, businesses, investors and workers in Wyoming benefit, for example, from no personal and corporate income and capital gains taxes; no death tax; and a low crime rate. However, there are negatives, including having the highest level of state and local government workers; a very high level of government spending; and high consumption-based taxes.

Wyoming Policy Highlights:

Positives:
• No individual income and capital gains taxes
• No corporate income and capital gains taxes
• No death tax
• Low crime rate
• Light regulatory burden on energy
• Right-to-work state

Negatives:
• High property taxes
• Highest level of state and local government workers
• High level of state and local government spending
• High consumption-based taxes
• High unemployment taxes
• High workers’ compensation costs

#6 Washington
SBPI Score: 52.010

Mount Rainier, which looms over Seattle, Washington, ranks as the highest peak in the continental United States. In similar fashion, the lack of any income-based taxes serves as a high point for Washington’s state economy, allowing the state to claim the sixth best public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Washington’s entrepreneurs, businesses, investors and workers definitely benefit from no personal and corporate income and capital gains taxes; as well as from a low level of state and local government workers. Among the state’s negatives, though, are very high consumption-based taxes; high unemployment, gas and diesel taxes; high government spending; and the highest state minimum wage.

Washington Policy Highlights:

Positives:
• No individual income and capital gains taxes
• No corporate income and capital gains taxes
• Low level of state and local government workers

Negatives:
• Second highest consumption-based taxes
• Imposes a state death tax
• High unemployment taxes
• High gas and diesel taxes
• High level of energy regulations
• High level of state and local government spending
• Highest state minimum wage

#5 Florida
SBPI Score: 49.109

Florida’s population has grown tremendously in recent decades – for example, from 12.9 million in 1990 to 19.5 million in 2013 – and it’s not just due to wonderful beaches, warm weather and Walt Disney World. It’s also about limiting governmental burdens. Florida has the fifth best public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Entrepreneurs, businesses, investors and workers in Florida benefit, for example, from no personal income and individual capital gains taxes; no death tax; the second lowest unemployment taxes; a low level of state and local government workers; and the lowest government spending trend. Among the few negatives are high consumption-based taxes; a high gas tax; and high wireless taxes.

Florida Policy Highlights:

Positives:
• No individual income and capital gains taxes
• No death tax
• Second lowest unemployment taxes
• Low level of state and local government workers
• Lowest government spending trend
• Right-to-work state

Negatives:
• High consumption-based taxes
• High gas tax
• High wireless taxes

#18 Alaska
SBPI Score: 69.933

Alaska is called “The Last Frontier.” And that frontier presents plusses and minuses for small business, as the state ranks 18th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Alaska’s entrepreneurs, businesses, investors and workers reap rewards from no personal income and individual capital gains taxes; no state death tax; a fairly low corporate capital gains tax; low consumption-based taxes; and the lightest energy regulatory burden. Among the minuses are a high corporate income tax; high property taxes; high levels of government spending, workers and debt; and very high workers’ compensation costs.

Alaska Policy Highlights:

Positives:
• No personal income and individual capital gains taxes
• Low consumption-based taxes
• Lowest gas and diesel taxes
• Lightest energy regulation burden
• Fairly low corporate capital gains tax
• No state death tax

Negatives:
• High corporate income tax
• High property taxes
• Highest workers’ compensation costs
• Second highest level of state and local government workers
• Highest level of government spending
• Second highest level of government debt

#3 Texas
SBPI Score: 38.562

In 1835, Texas became an independent nation, and then joined the U.S. a decade later. Nearly 170 years later, Texas still stands out as a land of independence as it has the third best public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Entrepreneurs, businesses, investors and workers in Texas benefit from no personal and corporate income and capital gains taxes; no death tax; low gas and diesel taxes; imposing the lightest regulatory burdens on energy; and the lowest workers’ compensation costs.

Texas Policy Highlights:

Positives:
• No individual income and capital gains taxes
• No corporate income and capital gains taxes
• No death tax
• Low gas and diesel taxes
• Lightest regulatory burdens on energy
• Lowest workers’ compensation costs
• Low unemployment taxes
• Right-to-work state

Negatives:
• High level of state and local government debt
• Fairly high property taxes

#9 Colorado
SBPI Score: 62.754

In 1972, Colorado became the only state to reject an invitation to host the Olympics (in this case, the 1976 Games) because voters opposed the use of state tax revenues to fund the Games. Colorado continues to be fairly careful when it comes to taxing and spending, as illustrated by the fact that it has the ninth best public policy climate for entrepreneurship and small business, according the 2014 “Small Business Policy Index.” Colorado’s entrepreneurs, businesses, investors and workers benefit from fairly low corporate income and capital gains, and gas and diesel taxes. However, property taxes are relatively high.

Colorado Policy Highlights:

Positives:
• Relatively low corporate income and capital gains taxes
• Fairly low gas and diesel taxes
• Low workers’ compensation costs

Negatives:
• Relatively high property taxes

#7 Alabama
SBPI Score: 59.036

Did you know that Alabama was the first state to declare Christmas a legal holiday, doing so in 1836? Today. Alabama’s policymakers provide the gift of the seventh best public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Alabama’s entrepreneurs, businesses, investors and workers benefit from the lowest property tax burden; no state death tax; fairly low income-based taxes; and the lightest regulatory burden on energy. Meanwhile, among the state’s few negatives is a high level of state and local government workers.

Alabama Policy Highlights:

Positives:
• Lowest property taxes
• No state death tax
• Fairly low income-based taxes
• Low unemployment taxes
• Lightest regulatory burden on energy
• Right-to-work state

Negatives:
• High level of state and local government workers

#16 Mississippi
SBPI Score: 68.045

Mississippi, the state claiming the birth of the blues, is not exactly blue for small businesses. It ranks 16th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Mississippi’s entrepreneurs, businesses, investors and workers no state death tax; and low gas and diesel taxes. Among the state’s negatives are high consumption-based taxes.

Mississippi Policy Highlights:

Positives:
• No state death tax
• Low gas and diesel taxes
• Low level of state and local government debt
• Right-to-work state

Negatives:
• High consumption-based taxes
• High level of state and local government workers

#17 South Carolina
SBPI Score: 69.218

South Carolina had the first shots of the Civil War at Fort Sumter, and now with places like Myrtle Beach, is a popular locale for golf shots. As for support of small business, South Carolina ranks 17th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” South Carolina’s entrepreneurs, businesses, investors and workers benefit from a low capital gains tax; low gas and diesel taxes; and no state death tax. Among the negatives, however, are high personal income taxes; and the highest state crime rate.

South Carolina Policy Highlights:

Positives:
• Relatively low capital gains tax
• Fairly low consumption-based taxes
• Low gas and diesel taxes
• No state death tax

Negatives:
• High personal income taxes
• High workers’ compensation costs
• Highest crime rate

#25 Tennessee
SBPI Score: 75.436

Tennessee is a major center of American music. But what kind of tune do policymakers play for the business community? Tennessee ranks 25th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Tennessee’s entrepreneurs, businesses, investors and workers benefit from no personal income and capital gains taxes; low property taxes; and low gas and diesel taxes. On the negative side, the state imposes high consumption-based taxes; and has a high crime rate.

Tennessee Policy Highlights:

Positives:
• No personal income and capital gains taxes
• Low property taxes
• Low gas and diesel taxes
• Fairly low level of government spending

Negatives:
• High consumption-based taxes
• High crime rate

#23 Missouri
SBPI Score: 73.570

Missouri’s unofficial state slogan is the “Show-Me-State.” Do elected officials show that they know what it takes to encourage entrepreneurship by advancing and maintaining pro-growth policies? Missouri ranks 23rd in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Missouri’s entrepreneurs, businesses, investors and workers benefit from fairly low property taxes; no state death tax; and a low level of government spending. As for negatives, they include a fairly high crime rate.

Missouri Policy Highlights:

Positives:
• Fairly low property taxes
• Low gas and diesel taxes
• Light energy regulatory burden
• Low level of government spending
• No state death tax

Negatives:
• High wireless taxes
• Fairly high crime rate

#11 Ohio
SBPI Score: 63.736

Ohio is often referred to as the “Mother of Modern Presidents” since seven Ohioans were elected president since 1869. Given recent improvements made on the policy front, the current president might want to take note that Ohio ranks eleventh in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Ohio’s entrepreneurs, businesses, investors and workers benefit from no corporate income tax; no death tax; and relatively low regulatory burdens on energy.

Ohio Policy Highlights:

Positives:
• No corporate income and capital gains taxes
• Relatively low energy regulatory burdens
• Fairly low workers’ compensation costs
• No death tax

Negatives:
• High state minimum wage

#15 Virginia
SBPI Score: 66.771

At the start of this nation, few states played a bigger role in forming policy than Virginia, given that four of the first five U.S. presidents were Virginians. Today, at least from a policy perspective, Virginia ranks as a respectable fifteenth in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Virginia’s entrepreneurs, businesses, investors and workers benefited from no death tax; low gas taxes; low unemployment taxes; and a low level of government spending. Meanwhile, a key negative is high consumption-based taxes.

Virginia Policy Highlights:

Positives:
• No death tax
• Low unemployment taxes
• Low gas taxes
• Low wireless taxes
• Very low workers’ compensation costs
• Low crime rate
• Low level of government spending

Negatives:
• High consumption-based taxes

#24 Oklahoma
SBPI Score: 74.082

Oklahoma helps energize America, as it is the sixth largest oil producer among the states and the fourth largest natural gas producer. As for energizing businesses in the state, how do state policymakers fare? Oklahoma ranks 24th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Oklahoma’s entrepreneurs, businesses, investors and workers benefit from very low property taxes; no state death tax; a light energy regulatory burden; and low gas and diesel taxes. As for negatives, they include high workers’ compensation costs; and a high crime rate.

Oklahoma Policy Highlights:

Positives:
• No state death tax
• Very low property taxes
• Low gas and diesel taxes
• Light energy regulatory burden
• Low level of government spending

Negatives:
• Fairly high wireless taxes
• High workers’ compensation costs
• High crime rate

#12 Arizona
SBPI Score: 63.755

Arizona, the Grand Canyon State, turns out to be something grand for the entrepreneurial sector of our economy given that the state ranks twelfth in terms of the public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Arizona’s entrepreneurs, businesses, investors and workers benefit from fairly low personal income and capital gains taxes; low workers’ compensation costs; and a low level of government spending. On the negative side, the state has high consumption-based taxes, and a high crime rate.

Arizona Policy Highlights:

Positives:
• Fairly low personal income and capital gains taxes
• Low unemployment taxes
• Fairly low gas tax
• Low workers’ compensation costs
• Low level of state and local government workers
• Low level of government spending

Negatives:
• High consumption-based taxes
• High crime rate

#19 Georgia
SBPI Score: 70.628

According to Georgia.gov, Georgia, the Peach State, “produces poultry, eggs, cotton, peanuts, peaches and Vidalia onions, the last three of which all hold places as state symbols.” How does the state do in terms of establishing a climate for the businesses involved in producing these and other goods and services? George ranks 19th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Georgia’s entrepreneurs, businesses, investors and workers benefit from low unemployment taxes; no state death tax; and a low level of government spending. However, Georgia does have a high crime rate.

Georgia Policy Highlights:

Positives:
• Low unemployment taxes
• Light energy regulatory burden
• Low level of government spending
• Low level of government debt
• No state death tax

Negatives:
• High crime rate

#35 Illinois
SBPI Score: 84.764

The famous Lincoln-Douglas debates – between Abraham Lincoln and Stephen A. Douglas – occurred in Illinois in 1858. Today, the state could use greater debate over policies that impact entrepreneurship and the economy. Illinois ranks 35th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Illinois’ entrepreneurs, businesses, investors and workers benefit from a fairly low level of government workers, but the state’s negatives are numerous, including high corporate income, corporate capital gains, property, gas, diesel, and wireless taxes.

Illinois Policy Highlights:

Positives:
• Fairly low level of government workers

Negatives:
• High corporate income and capital gains taxes
• High property taxes
• High gas and diesel taxes
• High wireless taxes
• High level of government debt

#14 Michigan
SBPI Score: 64.720

Michigan served as home to American automobile manufacturers for decades, and after hitting some very tough times, the state’s economy has climbed back over the last few years. To attract and encourage new business and investment, Michigan must have a competitive policy environment. It ranks a respectable fourteenth among the 50 states, according the 2014 “Small Business Policy Index.” Michigan’s entrepreneurs, businesses, investors and workers benefits from no state death tax; fairly low personal income taxes; and a low level of state and local government workers. On the negative side, the state imposes high gas and diesel taxes; and a high minimum wage.

Michigan Policy Highlights:

Positives:
• Fairly low personal income taxes
• No state death tax
• Relatively low workers’ compensation costs
• Low level of state and local government workers
• Right-to-work state

Negatives:
• High gas and diesel taxes
• High state minimum wage

#8 Indiana
SBPI Score: 62.646

Indiana hosts two of motor racing’s most exciting events – the Indy 500 and NASCAR’s Brickyard 400 – at the Indianapolis Motor Speedway. The state also has raced ahead in the competition among the 50 states to have the eighth best public policy climate for entrepreneurship and small business, according the 2014 “Small Business Policy Index.” Indiana’s entrepreneurs, businesses, investors and workers benefit from, for example, fairly low individual income and capital gains levies; no state death tax; low workers’ compensation costs; and a low level of government spending. On the negative side, Indiana also imposes fairly high corporate income and capital gains taxes; and high gas and diesel taxes.

Indiana Policy Highlights:

Positives:
• No state death tax
• Fairly low individual income and capital gains taxes
• Low workers’ compensation costs
• Low level of state and local government spending

Negatives:
• Fairly high corporate income and capital gains taxes
• High gas and diesel taxes

#32 Delaware
SBPI Score: 82.505

Since it was first to ratify the Constitution, Delaware is known as the First State. Unfortunately, it does not rank first when it comes to how well policymakers today treat small businesses and entrepreneurs. Delaware ranks 32nd in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Delaware’s entrepreneurs, businesses, investors and workers benefit from low property and consumption-based taxes, but the state’s negatives are notable, including high personal income, individual capital gains, corporate income, and corporate capital gains taxes, and a high level of government spending.

Delaware Policy Highlights:

Positives:
• Low property taxes
• Low consumption-based taxes
• Low wireless taxes

Negatives:
• High personal income and individual capital gains taxes
• High corporate income and capital gains taxes
• High crime rate
• High level of government spending

#26 New Mexico
SBPI Score: 76.843

During World War II, New Mexico was the place where the atomic bomb that eventually brought the war to an end was developed and tested. How does the state fare today in competition between the states that often verges on economic warfare? New Mexico ranks 26th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” New Mexico’s entrepreneurs, businesses, investors and workers benefit from a low capital gains tax; low property taxes; and no state death tax. Among the state’s negatives are high corporate income, corporate capital gains, and consumption-based taxes, as well as a high crime rate and a high level of government workers.

New Mexico Policy Highlights:

Positives:
• Low capital gains tax
• Fairly low personal income tax
• Low property taxes
• Low gas and diesel taxes
• No state death tax

Negatives:
• High corporate income and capital gains taxes
• High consumption-based taxes
• Second highest crime rate
• High level of state and local government workers

#37 Arkansas
SBPI Score: 85.457

One of Arkansas’ nicknames is “The Land of Opportunity.” However, to live up to that moniker, some serious policy changes are needed. Arkansas ranks 37th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Arkansas’ entrepreneurs, businesses, investors and workers benefit no state death tax; low property taxes; and low workers’ compensation costs. But among the various negatives are high personal income, consumption-based and wireless taxes, along with a high crime rate.

Arkansas Policy Highlights:

Positives:
• No state death tax
• Low property taxes
• Low workers’ compensation costs
• Low level of state and local government spending

Negatives:
• High personal income tax
• High consumption-based taxes
• High wireless taxes
• High crime rate
• High level of state and local government workers

#13 Utah
SBPI Score: 64.555

Utah has become a state known for skiing and the Sundance Film Festival. It’s also a state that is friendly to small businesses, ranking thirteenth in its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Utah’s entrepreneurs, businesses, investors and workers reap rewards from low workers compensation costs; a relatively low level of government spending; and being a right-to-work state. Among the states negative, though, are high unemployment taxes.

Utah Policy Highlights:

Positives:
• Low workers’ compensation costs
• Fairly low level of state and local government workers
• Relatively low level of government spending
• Right-to-work state

Negatives:
• High unemployment taxes
• High wireless taxes

#27 New Hampshire
SBPI Score: 77.935

New Hampshire’s motto of “Live Free or Die” fits for the risk takers that start up and invest in new businesses as well. So, do the state’s policymakers work to let entrepreneurship live or die? New Hampshire ranks 27th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” New Hampshire’s entrepreneurs, businesses, investors and workers benefit from no personal income and individual capital gains taxes; no state death tax; and low consumption-based taxes. Meanwhile, the negatives include the highest property taxes; and high corporate income and capital gains taxes.

New Hampshire Policy Highlights:

Positives:
• No personal income and individual capital gains taxes
• No state death tax
• Low consumption-based taxes
• Low crime rate

Negatives:
• High corporate income and capital gains taxes
• Highest property taxes

#36 Kentucky
SBPI Score: 84.952

Kentucky is the home to the most exciting two minutes in sports, that is, the Kentucky Derby. The state also needs more of a race in terms of policymaking, specifically, more wins for pro-small business policies. Kentucky ranks 36th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Kentucky’s entrepreneurs, businesses, investors and workers benefit from low property taxes, but assorted negatives include high personal income and individuals capital gains taxes, as well as a high level of government workers.

Kentucky Policy Highlights:

Positives:
• Low property taxes

Negatives:
• Fairly high personal income and individual capital gains taxes
• High level of state and local government workers

#29 Pennsylvania
SBPI Score: 78.700

Due to private-sector investment and innovation, Pennsylvania has been transformed into a leading energy producing state in recent years, ranking number two in terms of natural gas production. How does policymaking affect these and assorted other industries in the state dominated by small businesses? Pennsylvania ranks 29th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Pennsylvania entrepreneurs, businesses, investors and workers benefit from low personal income and individual capital gains taxes; and a low crime rate. Among the negatives for the state are the highest corporate income and capital gains taxes; and high gas and diesel taxes.

Pennsylvania Policy Highlights:

Positives:
• Low personal income and capital gains taxes
• Low crime rate
• Low level of state and local government workers

Negatives:
• Highest corporate income and capital gains taxes
• High gas and diesel taxes
• High wireless taxes

#20 Louisiana
SBPI Score: 71.806

Louisiana is “home to the historic port city New Orleans, which is famous for its unique cuisine, jazz and spectacular Mardi Gras festival,” as History.com notes. Are Louisiana’s policies festive for small business? Louisiana ranks 20th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Louisiana’s entrepreneurs, businesses, investors and workers benefit from low property taxes; fairly low personal income taxes; low unemployment levies; and no state death tax. As for the negatives, they include high consumption-based taxes; high crime rate; and a high level of government workers.

Louisiana Policy Highlights:

Positives:
• Low property taxes
• Relatively low personal income taxes
• Low unemployment taxes
• Low gas and diesel taxes
• Fairly low wireless taxes
• No state death tax

Negatives:
• High consumption-based taxes
• Fairly high workers’ compensation costs
• High crime rate
• High level of government workers

#38 Maryland
SBPI Score: 86.461

Maryland is the place that gave birth to our national anthem. While watching the British attack Fort McHenry during the War of 1812, Francis Scott Key wrote the lyrics to “The Star-Spangled Banner.” In today’s battle to maintain freedom, Maryland ranks among those imposing heavy governmental burdens. Maryland ranks 38th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While Maryland’s entrepreneurs, businesses, investors and workers benefit from low consumption-based taxes, among the various negatives are high corporate income and capital gains taxes; a heavy regulatory burden on energy; and the imposition of a state death tax.

Maryland Policy Highlights:

Positives:
• Low consumption-based taxes
• Fairly low workers’ compensation costs

Negatives:
• High corporate income and capital gains taxes
• High wireless taxes
• Heavy regulatory burden on energy
• Imposes a state death tax

#33 Montana
SBPI Score: 83.027

Montana is known as Big Sky Country. But the sky would be much bigger in terms of business opportunities with a rollback in some governmental costs. Montana ranks 33rd in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Montana’s entrepreneurs, businesses, investors and workers benefit from low consumption-based taxes and no state death tax, but among the notable negatives are high personal income and unemployment taxes, as well as high workers’ compensation costs.

Montana Policy Highlights:

Positives:
• No state death tax
• Low consumption-based taxes

Negatives:
• High personal income taxes
• High unemployment taxes
• High workers’ compensation costs

#30 Wisconsin
SBPI Score: 81.594

As noted at History.com, “Wisconsin leads the nation in dairy production and is known for the quality of its cheddar cheese–residents even sometimes refer to themselves as ‘cheeseheads.’” How do the cheeseheads that make policy treat small business? Wisconsin ranks 30th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Wisconsin entrepreneurs, businesses, investors and workers benefit from low consumption-based and wireless taxes, but among the state’s negatives are high personal income, corporate income, corporate capital gains, and property taxes, as well as high workers’ compensation costs.

Wisconsin Policy Highlights:

Positives:
• Fairly low consumption-based taxes
• Low wireless taxes

Negatives:
• High personal income tax
• High corporate income and capital gains taxes
• High property taxes
• High regulatory burden on energy
• High workers’ compensation costs

#41 Connecticut
SBPI Score: 94.919

The last state to impose an income tax was Connecticut in 1991, taking the Nutmeg State from a fairly competitive state from a public policy perspective to one of the worst. Things have simply gotten worse ever since. Connecticut ranks 41st in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Connecticut’s entrepreneurs, businesses, investors and workers benefit from a low crime rate and low consumption-based taxes. However, the state’s negatives are numerous, including high personal income, individual capital gains, corporate income, corporate capital gains, property, gas and diesel taxes, along with high levels of government spending and debt.

Connecticut Policy Highlights:

Positives:
• Low consumption-based taxes
• Low crime rate

Negatives:
• High personal income and individual capital gains taxes
• High corporate income and capital gains taxes
• High property taxes
• High gas and diesel taxes
• High level of state and local government spending
• High level of state and local government debt
• Imposes a state death tax
• Imposes high regulatory burdens on energy

#10 North Dakota
SBPI Score: 63.134

North Dakota seemed to come from out of nowhere not that long ago to now rank as the second largest oil producing state in the nation. That’s been a big plus for the state’s economy, as have recent policy changes that have boosted North Dakota to the tenth best public policy climate for entrepreneurship and small business, according the 2014 “Small Business Policy Index.” North Dakota’s entrepreneurs, businesses, investors and workers benefit from a very low capital gains tax; low personal income tax; fairly low corporate income and capital gains levies; a light regulatory burden on energy; and the second lowest crime rate. As for negatives, they include high unemployment taxes; fairly high consumption-based taxes; and a high level of state and local government workers.

North Dakota Policy Highlights:

Positives:
• Very low individual capital gains tax
• Low personal income tax
• Fairly low corporate income and capital gains taxes
• Relatively low property taxes
• Light regulatory burden on energy
• Second lowest crime rate

Negatives:
• Fairly high consumption-based taxes
• Highest unemployment taxes
• Relatively high workers’ compensation costs
• High level of state and local government workers
• Highest government spending trend

#22 Kansas
SBPI Score: 72.068

According to the Kansas Department of Agriculture, “Kansas is a leader in wheat, grain sorghum and beef production. The dairy sector is rapidly expanding in Kansas and other sectors of animal agriculture are growing as well.” As for government policies towards businesses in these and other sectors, Kansas ranks 22nd in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Kansas’ entrepreneurs, businesses, investors and workers benefit from no state death tax; and fairly low unemployment taxes. Among the negatives are fairly high corporate taxes.

Kansas Policy Highlights:

Positives:
• No state death tax
• Fairly low unemployment taxes
• Light energy regulatory burdens

Negatives:
• Fairly high corporate income and capital gains taxes
• High wireless taxes
• High level of state and local government workers

#44 Oregon
SBPI Score: 97.395

Back in the early 19th century, many settlers headed west along the Oregon Trail seeking opportunity, and wound up settling in the location that would gain statehood in 1859. Unfortunately, Oregon’s policy climate today works to restrain opportunity. Oregon ranks 44th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Oregon’s entrepreneurs, businesses, investors and workers benefit from the lowest consumption-based taxes, and the lowest wireless taxes. However, those plusses are greatly outweighed by an assortment of costly negatives, including high personal income, individual capital gains, corporate income, corporate capital gains, and unemployment taxes, as well as a high regulatory burden on energy.

Oregon Policy Highlights:

Positives:
• Lowest consumption-based taxes
• Lowest wireless taxes

Negatives:
• Very high personal income and individual capital gains taxes
• High corporate income and capital gains taxes
• High unemployment taxes
• Imposes a state death tax
• High regulatory burden on energy

#21 North Carolina
SBPI Score: 72.034

North Carolina was the place where the Wright Brothers first took flight. Recent pro-growth tax reform measures have improved the state as a place where entrepreneurs can take flight more successfully. North Carolina ranks 21st in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” North Carolina’s entrepreneurs, businesses, investors and workers reap rewards from low property taxes; a low level of government spending; and no state death tax. Negatives include high gas and diesel taxes; and a high level of government workers.

North Carolina Policy Highlights:

Positives:
• Low property taxes
• Low level of government spending
• Low level of government debt
• No state death tax

Negatives:
• High gas and diesel taxes
• High level of energy regulatory burdens
• High level of government workers

#39 Nebraska
SBPI Score: 91.083

According to History.com, “The popular drink Kool-Aid was invented in Hastings, Nebraska, in 1927. The brainchild of Edwin Perkins, Kool-Aid is the state’s official soft drink.” To promote more invention and innovation today, however, Nebraska needs to roll back governmental burdens in order for entrepreneurship to flourish. Nebraska ranks 39th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While Nebraska entrepreneurs, businesses, investors and workers benefit from fairly low consumption-based taxes, among the many negatives for the state are high personal income, individual capital gains, corporate income, corporate capital gains, property and wireless taxes, along with a high level of government workers.

Nebraska Policy Highlights:

Positives:
• Fairly low consumption-based taxes

Negatives:
• High personal income and individual capital gains taxes
• High corporate income and capital gains taxes
• High property taxes
• High unemployment taxes
• Second highest wireless taxes
• High level of state and local government workers
• Impose a state death tax

#28 West Virginia
SBPI Score: 78.587

West Virginia is the second largest coal producing state in the nation. What about public policies affecting these producers, and the many other industries and businesses in the state? West Virginia ranks 28th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” West Virginia’s entrepreneurs, businesses, investors and workers benefit from low property taxes; and no state death tax. Among the state’s negatives are high gas and diesel taxes, as well as high workers’ compensation costs.

West Virginia Policy Highlights:

Positives:
• Low property taxes
• Low wireless taxes
• No state death tax

Negatives:
• High gas and diesel taxes
• High workers’ compensation costs

#47 Hawaii
SBPI Score: 105.922

With its gorgeous beaches and near-perfect weather, Hawaii rates as a tropical paradise. Unfortunately, it is far from a small business paradise. Hawaii ranks 47th, that is, fourth worst, in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While Hawaii’s entrepreneurs, businesses, investors and workers benefit from a low corporate capital gains tax, and low property and wireless taxes, the negatives far outweigh the positives. Those negatives include the second highest personal income tax rate; the highest consumption-based taxes; and high unemployment, gas and diesel taxes.

Hawaii Policy Highlights:

Positives:
• A low corporate capital gains tax
• Low property taxes
• Low wireless taxes

Negatives:
• Second highest personal income tax rate
• Highest consumption-based taxes
• High unemployment taxes
• High gas and diesel taxes
• Imposes a state death tax

#34 Idaho
SBPI Score: 83.092

Idaho is the nation’s number one producer of potatoes. Unfortunately, state policymakers make it costly to be in the potato business, as well as in most other businesses. Idaho ranks 34th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” Idaho’s entrepreneurs, businesses, investors and workers benefit from no state death tax; the lowest crime rate; and the lowest level of government spending. Among the negatives are high personal income, individual capital gains, corporate income, corporate capital gains, and unemployment taxes.

Idaho Policy Highlights:

Positives:
• No state death tax
• Low wireless taxes
• Lowest crime rate
• Lowest level of government spending

Negatives:
• High personal income and individual capital gains taxes
• High corporate income and capital gains taxes
• High unemployment taxes
• High workers’ compensation costs

#45 Vermont
SBPI Score: 102.754

If you love snow and skiing, Vermont is the state for you. However, if you are an entrepreneur or investor, nearly any other state would be an improvement. Vermont ranks 45th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While Vermont’s entrepreneurs, businesses, investors and workers benefit from a fairly low crime rate, the negatives for the state are overwhelming, including high personal income, corporate income, corporate capital gains and property taxes; imposition of a state death tax; and high levels of government spending and workers.

Vermont Policy Highlights:

Positives:
• Fairly low crime rate

Negatives:
• High personal income taxes
• High corporate income and capital gains taxes
• Very high property taxes
• Imposes a state death tax
• High workers’ compensation costs
• High level of state and local government workers
• High level of state and local government spending

#31 Massachusetts
SBPI Score: 82.169

Massachusetts hosted the Boston Tea Party, and it could use some of that anti-tax revolutionary thinking today. Massachusetts ranks 31st in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While Massachusetts’ entrepreneurs, businesses, investors and workers benefit from low consumption-based taxes, among the state’s numerous negatives are high corporate income, corporate capital gains, and property taxes, as well as high levels of government spending and debt.

Massachusetts Policy Highlights:

Positives:
• Low consumption-based taxes
• Low workers’ compensation costs

Negatives:
• High corporate income and capital gains taxes
• High property taxes
• High level of government spending
• Very high level of government debt

#48 New York
SBPI Score: 107.393

New York was once the Empire State. But as various wags have noted over the years, the state has earned the nickname of the Vampire State. Big governmental costs have drained much of the state’s economic vitality. New York ranks 48th, that is, third worst, in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While New York’s entrepreneurs, businesses, investors and workers benefit from a low crime rate and fairly low unemployment taxes, the list of the state’s negatives is quite lengthy, including high personal income, individual capital gains, corporate income, corporate capital gains, property, consumption-based, diesel and wireless taxes. Also, New York has the highest gas tax; the highest energy regulatory burdens; a death tax; high levels of government spending and workers; and the highest level of government debt.

New York Policy Highlights:

Positives:
• Fairly low unemployment taxes
• Low crime rate

Negatives:
• High personal income and individual capital gains taxes
• High corporate income and capital gains taxes
• High property taxes
• High consumption-based taxes
• Highest gas tax
• High diesel tax
• High wireless taxes
• Highest energy regulation burdens
• Imposes a state death tax
• High level of state and local government workers
• High level of state and local government spending
• Highest level of state and local government debt

#40 Rhode Island
SBPI Score: 91.891

Rhode Island went from being a summer playground for the wealthy – such as in Newport – to being a state with a struggling economy. That transformation was brought about over many decades of changes, including new and higher federal taxes. But state policymakers played their parts as well. Rhode Island ranks 40th in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While Rhode Island’s entrepreneurs, businesses, investors and workers benefit from a fairly low level of government workers, the negatives for the state are considerable, including high corporate income, corporate capital gains, property, unemployment, gas, diesel, and wireless taxes; and high levels of state and local government spending and debt.

Rhode Island Policy Highlights:

Positives:
• Fairly low level of state and local government workers

Negatives:
• High corporate income and capital gains taxes
• High property taxes
• High unemployment taxes
• High gas and diesel taxes
• High wireless taxes
• High level of state and local government spending
• High level of state and local government debt
• Impose a state death tax

#42 Maine
SBPI Score: 96.638

Maine is known for its rocky coast, and from those waters, Maine also is the nation’s leading lobster producer. Unfortunately, rocky policy waters hurt small business, entrepreneurship and investment in the state. Maine ranks 42nd in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While there are few positives for Maine’s entrepreneurs, businesses, investors and workers, there are many negatives, including high personal income, individual capital gains, corporate income, corporate capital gains, and property taxes, along with a state death tax.

Maine Policy Highlights:

Positives:
• Low wireless taxes

Negatives:
• High personal income and individual capital gains taxes
• High corporate income and capital gains taxes
• High property taxes
• Imposes a state death tax
• Imposes high regulatory burdens on energy

#43 Iowa
SBPI Score: 97.209

Iowa is the nation’s number one producer of corn. Unfortunately, it’s costly policy climate works against production from free enterprise and entrepreneurship in general. Iowa ranks 43rd in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While Iowa’s entrepreneurs, businesses, investors and workers benefit from fairly low crime rate and a low level of government debt, there are many negatives, such as high individual capital gains taxes; very high corporate income and capital gains taxes; high unemployment taxes; and a high level of government spending.

Iowa Policy Highlights:

Positives:
• Fairly low crime rate
• Low level of state and local government debt

Negatives:
• High individual capital gains tax
• Very high corporate income and capital gains taxes
• High unemployment taxes
• High workers’ compensation costs
• High level of state and local government spending
• Imposes a state death tax

#50 California
SBPI Score: 118.454

California has so much going for it in terms of natural beauty, from the beaches of southern California, the breathtaking Monterey Peninsula, and the giant Redwoods. Unfortunately, though, the climate for entrepreneurship is the worst in the nation. California ranks 50th, that is, dead last, in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While California’s entrepreneurs, businesses, investors and workers benefit from no state death tax; the lowest unemployment taxes; and a low level of government workers, the state’s negatives are staggering, including the highest personal income and individual capital gains taxes; high corporate income, corporate capital gains, gas and diesel taxes; high workers’ compensation costs; second highest energy regulatory burdens; and high levels of government spending and debt.

California Policy Highlights:

Positives:
• No State death tax
• Lowest unemployment taxes
• Low level of state and local government workers

Negatives:
• Highest personal income and individual capital gains taxes
• High corporate income and capital gains taxes
• High gas and diesel taxes
• Second highest energy regulation burdens
• High workers’ compensation costs
• High level of state and local government spending
• Highest level of state and local government debt

#46 Minnesota
SBPI Score: 105.913

Minnesota’s football team, the Vikings, is one of two NFL teams with 0-4 records in the Super Bowl. That sad fact is the sports equivalent of Minnesota’s poor record in terms of its policy climate for small businesses. Minnesota ranks 46th, that is, fifth worst, in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While Minnesota’s entrepreneurs, businesses, investors and workers benefit from fairly low workers’ compensation costs, the negatives for the state are massive, including very high personal income, individual capital gains, corporate income, and corporate capital gains taxes, along with high unemployment taxes and a state death tax.

Minnesota Policy Highlights:

Positives:
• Fairly low workers’ compensation costs
• Relatively low level of state and local government workers

Negatives:
• High personal income and individual capital gains taxes
• High corporate income and capital gains taxes
• High unemployment taxes
• Imposes a state death tax

#49 New Jersey
SBPI Score: 112.529

New Jersey’s nickname is the Garden State. Unfortunately, the state’s hostile policy climate is barren soil for planting and growing a business. New Jersey ranks 49th, that is, second worst, in terms of its public policy climate for entrepreneurship and small business among the 50 states, according the 2014 “Small Business Policy Index.” While New Jersey’s entrepreneurs, businesses, investors and workers benefit from a low crime rate; low gas and diesel taxes; and low consumption-based taxes, the state’s negatives are overwhelming, including high personal income, individual capital gains, corporate income, corporate capital gains, property, and unemployment taxes; a state death tax; and high levels of government spending and debt.

New Jersey Policy Highlights:

Positives:
• Low consumption-based taxes
• Low gas and diesel taxes
• Low crime rate

Negatives:
• High personal income and individual capital gains taxes
• High corporate income and capital gains taxes
• High property taxes
• High unemployment taxes
• High regulatory burdens on energy
• Imposes a state death tax
• High level of state and local government spending
• Highest level of state and local government debt

The District of Columbia was previously included in the "Small Business Policy Index," but has not been included for the past couple of years. The District was dropped because it is not covered in several measures included in the Index, and therefore, its ranking would not accurately reflect its competitive position relative to the 50 states. Please look for a "city index," which SBE Council will publish in 2015.

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