Missouri’s tax climate is more competitive than all of its neighboring states except for one, according to the Tax Foundation’s 2018 State Business Tax Climate Index.
“The evidence shows that states with the best tax systems will be the most competitive at attracting new businesses and most effective at generating economic and employment growth,” the Index authors write. “…It is important to remember that even in our global economy, states’ stiffest competition often comes from other states. The Department of Labor reports that most mass job relocations are from one U.S. state to another rather than to a foreign location…. This means that state lawmakers must be aware of how their states’ business climates match up against their immediate neighbors and to other regional competitor states.”
Here’s how Missouri ranked in this year’s study:
- Overall rank: 16th
- Corporate tax: 5th
- Individual income: 28th
- Sales tax: 24th
- Unemployment insurance tax: 7th
- Property tax: 7th
Compared with neighboring states, Missouri ranked better than all but Tennessee, which came in at 14th overall. Arkansas ranked 39th, Iowa 40th, Illinois 29th, Kansas 23rd, Kentucky 33rd, Nebraska 25th, and Oklahoma 32nd.