Delaware ranks in the top ten in a study of business friendly states. New Jersey was the worst in the nation on the Business Tax Climate Index.
Delaware once again ranks as one of the best states in the nation when it comes to taxes. The Tax Foundation’s study of the ways states raise revenue through taxes found a stark contrast between Delaware, which ranked 8th best, and New Jersey, which was dead last.
The Business Tax Climate Index didn’t look at how much money state’s collected through taxes, but rather how the tax burden is distributed. The underlying principle behind the study: “States with the best tax systems will have an advantage in attracting new businesses and generating economic and employment growth.” The author of the study, Kail Padgitt says that means Delaware is in the best position in the region to attract businesses. “Delaware is regionally just head and shoulders above everyone else. In fact, I don’t think there is a region in the nation that sees quite as much disparity between its neighboring states.”
Delaware did so well in part because of the state’s lack of a sales tax, which made up for higher corporate taxes than other states. New Jersey did poorly on most categories in the index, including property taxes and personal income taxes. Pennsylvania was ranked in the middle of the pack, at 27th. Delaware’s other neighbor, Maryland also did poorly with a rank of 45th.
You can read the report by clicking here.