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Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
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Editor’s note: This is a transcript of the audio file.
As the economy slowly sputters back to life, states with business-friendly tax systems will be the most successful in attracting new companies. I’m Kristin Arnold with your Bankrate.com Personal Finance Minute.
In 2011, the state that is most likely to attract new business is South Dakota.
The rest of the 10 states with tax systems that businesses find appealing are Alaska, Wyoming, Nevada, Florida, Montana, New Hampshire, Delaware, Utah and Indiana.
The rankings are important because, despite all the complaints about overseas outsourcing, Department of Labor data show most mass job relocations are from one state to another.
Companies prefer low, flat tax rates on the broadest range of taxpayers and a system in which taxpayers are treated the same.
State Business Tax Climate Index rewards those states that apply these principles in five important areas of taxation: major business taxes, individual income taxes, sales taxes, unemployment insurance taxes and property taxes.
For tax news and tips, visit Bankrate.com. I’m Kristin Arnold.
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