WASHINGTON – Rhode Island is one of the worst places to start a small business, according to a report by the Small Business & Enterpreneurship Council.
The report – “Business Tax Index 2012: Best to Worst State Tax Systems for Entrepreneurship and Small Business” – was released last week and ranked Rhode Island 41st.
The report analyzed 18 different tax measures and combined those into one tax score, comparing the 50 states and the District of Columbia.
Parameters included income tax, capital gains tax, property tax, death/inheritance tax, unemployment and various consumption-based taxes like state gas and diesel levies.
“All taxes matter, whether imposed at the federal, state or local level of government. They matter to consumers, entrepreneurs, investors and businesses,” SBE Chief Economist Raymond J. Keating said in prepared remarks.
“State and local levies matter in terms of a state’s competitiveness. And they matter when it comes to economic growth and job creation,” he added.
Rhode Island ranked 41st with a score of 49.077, faring better than Connecticut, Hawaii, Vermont, California, Maine, Iowa, New York, New Jersey, Minnesota and the District of Columbia, which ranked 42nd to 51st, respectively.
Massachusetts ranked 35th with a score of 44.227. Comparatively, South Dakota ranked highest with a score of 11.813 and the District of Columbia scored 63.007.
The Ocean State ranked 28th for personal income tax rates, 30th for capital gains tax rates, 43rd for corporate income tax rates, 44th for corporate capital gains tax rates, 47th for property tax rates, 17th for sales and excise taxes and 42nd for adjusted unemployment taxes.
State gas taxes ranked 39th, diesel taxes ranked 41st and wireless taxes ranked 46th, across the county.