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According to the report, states with the best tax systems will be most competitive in attracting new businesses and be the most effective at generating economic and employment growth.
Although the market is now global, the Department of Labor reports that most mass job relocations are from one U.S. state to another rather than to an overseas location.
The SBTCI looks at 113 variables in five indexes that each measure a different sector of a state`s business tax climate. The five indexes are the Corporate Tax Index, Individual Income Tax Index, Sales Tax Index, Unemployment Tax Index and Property Tax Index.
The total score for each state is calculated based on the scores on each of the five indexes. Using the five indexes, each state`s business tax climate was scored on a scale of zero (worst) to 10 (best).
Arkansas scored a 4.88 on the index, ranking 35th.
(Copyright 2006 Newsroom Solutions, LLC
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