Guess which two states have the worst business tax climate in the country, according to the Tax Foundation’s annual report? They are Andrew Cuomo’s New York and Chris Christie’s New Jersey. New Yorkers better get used to it, as New York also finished with the worst record last year.
Scott Drenkard of the Tax Foundation explained, “One of the biggest hindrances to New York’s score is the progressive and high individual income tax. It is pretty high for the region and certainly high against the rest of the country.” He added that high property taxes also contribute to the problem.
The three best states were Wyoming, South Dakota and Nevada, none of which have corporate or individual income taxes.
Cuomo doesn’t seem to get the message; earlier in 2013 he joined lawmakers to extend the millionaire’s tax rate in his state for three more years instead of letting it drop at the end of 2013 from its current top tax rate of 8.82% to 6.85%.