Each state was ranked in five categories: corporate tax, individual income tax, sales tax, unemployment insurance tax and property tax.
The Nutmeg state languished in every category with its highest ranking coming in the category of unemployment insurance tax (No. 23). Connecticut's lowest category was property tax, where it ranked No. 49.
The states in the Bottom 10 suffer from the same afflictions: complex, non-neutral taxes with comparatively high rates, according to the report.
The Top 10 states in 2014 are Wyoming, South Dakota, Nevada, Alaska, Florida, Washington, Montana, New Hampshire, Utah and Indiana.
The bottom 10 states, including Connecticut, were: Maryland, Wisconsin, North Carolina, Vermont, Rhode Island, Minnesota, California, New Jersey and New York.
“The states that lost ground this year usually did so because they changed policy in a way that makes the tax code more complex, burdensome, or economically harmful,” Tax Foundation economist Scott Drenkard said in a statement. “By contrast, the states that improved did so because they are moving closer to a tax code that collects revenue without unnecessarily distorting business decisions. Their tax codes became more neutral.”
New York and New Jersey finished in a virtual tie for last place, however, Drenkard said Gov. Andrew Cuomo's tax reform commission could move New York up if they are able to enact meaningful reform.
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