The Tax Foundation last week unveiled its latest installment of its annual State Business Tax Climate Index for 2012. Unsurprisingly, North Carolina remained far down the list, coming in a dismal 44 – making our state the 7th worst in the nation.
Dragging down our ranking is the state’s high sales tax and income tax rates. North Carolina rated lowest in the Southeast, and much worse than area states like Virginia (#26), Tennessee (#14), and Florida (#5).
While taxes are not the only factor impacting a state’s business climate, they are certainly a significant one. This ranking does not bode well for a state struggling with unemployment rates higher than the national average and per capita income falling further behind national and regional averages.
You can read the full Tax Foundation report here.