TAX-FRIENDLY TEXAS

WASHINGTON (taxfoundation.org) – The Lone Star State is one of the most “business friendly” tax environments in the country, according to a recent study by the Tax Foundation.

A new ranking of the 50 states suggests that the most business-tax-friendly climates are those with simple broad-based tax structures. Texas ranked sixth.

Curtis Dubay, co-author of the study known as the 2007 State Business Tax Climate Index, said the rankings are based on five core components: corporate and individual income taxes, sales tax, unemployment insurance tax and property tax.

“States that score in the top ten of our index will generally have broad-based taxes,” he said. “That means there aren’t a lot of loopholes, exemptions, credits or targeted tax incentives in their base.”