Study: Indiana Business Climate Ranked 8thPosted: Updated:
The Tax Foundation has ranked Indiana eighth in the nation for its business tax climate index. The Indiana Economic Development Corp. says the state moved up a notch from last year and remains tops in the Midwest for business tax competitiveness. October 28, 2014
INDIANAPOLIS, Ind. -- Indiana’s growing national reputation as a state that works for business has received another boost. Indiana ranks 8th overall in the Tax Foundation’s 2015 State Business Tax Climate Index, up from 10th in 2014, and remains the top state in the Midwest for business tax competitiveness.
“Here in Indiana, companies can count on a stable business climate that encourages their growth and success,” said Governor Mike Pence. “Since day one, we’ve focused on streamlining government and cutting taxes for Hoosier workers and businesses. By making things simpler, we’re not just building on our reputation through national rankings—we’re attracting businesses from around the world that are creating thousands of new jobs right here in a state that works for business.”
The Index, now in its 11th edition, measures how each state structures its tax code by analyzing more than 100 tax variables in five different categories: corporate, individual income, sales, property and unemployment insurance taxes. The Tax Foundation, a nonpartisan tax research group based in Washington, D.C., presents the Index annually as a tool for lawmakers, businesses and individuals to gauge how their states’ tax systems compare. States can move down in the Index for overly complex, burdensome and economically harmful tax codes, but can move up for transparent and neutral tax codes that do not distort business decisions.
Indiana’s 8th place ranking makes it the only Midwestern state in the publication’s top 10. Looking at nearby states, Michigan ranked 13th, Kentucky ranked 26th, Ohio ranked 44th, Illinois ranked 31st, Wisconsin ranked 43rd, Minnesota ranked 47th and Iowa ranked 41st.
The Tax Foundation’s report is the latest in a series of national accolades Indiana has received for its pro-business climate. Indiana's business environment recently scored a top 10 finish nationally, including best in the Midwest, in Area Development’s 2014 Top States for Doing Business Survey and ranked seventh in the Pollina Corporate Top 10 Pro-Business States for 2014 study. Also, Indiana was recognized in August as the state with the best business climate in the Midwest and fifth best nationally in Business Facilities’ 2014 State Rankings Report.
Source: Indiana Economic Development Corp.