Connecticut ranks 43rd in the country in the right-leaning Tax Foundation’s 2017 State Business Tax Climate Index, a slight improvement from 44th a year ago.
This 13th annual index measures how well-structured each state’s tax code is by analyzing more than 100 variables in five tax categories: corporate, individual income, sales, property, and unemployment insurance.
Wyoming continues in first place with the most competitive tax code in the country, while New Jersey maintains a long-standing position at the bottom. Connecticut remains in the bottom 10.
States are penalized for overly complex, burdensome and economically harmful tax codes.
Transparent and neutral tax codes that do not distort business decisions get states higher rankings.
The index varies depending not only on a state’s own actions, but also because of reforms made in other states, Tax Foundation Policy Analyst Jared Walczak said.
The breakdown of Connecticut’s rankings this year is as follows (1st is best, 50th is worst):
- Overall tax climate: 43
- Corporate tax structure: 32
- Individual income tax structure: 37
- Sales tax structure: 27
- Property tax structure: 49
- Unemployment insurance tax structure: 21
