State Tax Burdens
By
Jeff Cornwall on April 14, 2009 11:04 AM

Each year the Small Business and Entrepreneurship Council puts out its index of tax burden for each state in the US. From their report:
At the state and local levels, taxes have been piling up on small business owners. Many of states and localities continue to increase levies in various ways, including income, property, sales, assorted excise, gross receipts, and death taxes, along with a wide array of fees.
While each and every tax hits business directly or indirectly, different taxes affect economic decision-making in distinct ways. For example, income taxes are the most worrisome, as they impact incentives for working, investing and entrepreneurship. Property taxes affect decisions regarding investments in buildings and housing. And consumption-based taxes can divert and reduce consumer purchases.

You can find an interactive map here.

The top 10 this year includes:
1 South Dakota
2 Nevada
3 Wyoming
4 Washington
5 Texas
6 Florida
7 Alaska
8 Colorado
9 Alabama
10 Ohio

The worst ten states are (OK, DC is not officially a state, but it seems to be headed that way):
42 Massachusetts
43 Vermont
44 Rhode Island
45 Iowa
46 New York
47 California
48 Maine
49 Minnesota
50 New Jersey
51 Dist. of Columbia
Why does this matter? Taxes, regulatory costs and property rights are the top three predictors of entrepreneurial activity within an economy. Look for the bottom states to lag when the recovery begins to get in gear.

http://www.drjeffcornwall.com/2009/04/state-tax-burdens.html