Louisiana fell two spots to No. 44 in the Tax Foundation’s latest annual “State Business Tax Climate Index,” which measures the business friendliness of a state’s tax code.
Once again, Louisiana also holds the distinction of being worst in the nation for sales taxes, according to the foundation’s 2018 index. released today.
In other categories, Louisiana is No. 36 for corporate taxes, No. 32 for individual taxes, No. 32 in property taxes, and No. 4 for unemployment insurance taxes—the only category in which the state stayed the same, rather than sink lower in the ranking.
Though the state’s sales tax rate has edged down, a convoluted tax code with high rates still has the state low on the rankings compiled by the Washington, D.C.-based think tank. The tax foundation analyzes the five variables to compile the ranking.
A state can rise or fall on the list based on reforms implemented in other states or due to its own actions. States are rewarded for transparency and neutral tax codes, and penalized for having tax codes that are burdensome, complex and economically harmful.
New Jersey ranks last on the index. Wyoming, Alaska, South Dakota, Florida and Montana top the list.
