“Tennessee is really in a groove right now when it comes to small business growth,” NFIB/TN State Direct Jim Brown told News Channel 5 recently, following the release of Paychex’s latest report on small business employment. According to the national payroll and HR company’s report, Tennessee ranked number one in the national in small business employment growth at 1.2 percent. This is the fifth straight month the Volunteer State has held this top ranking.
Brown noted that major reforms enacted on unemployment, workers’ compensation, and taxes over the past few years played a major role in this success. NFIB/TN’s 6,500 members in Tennessee have been doing well, Brown said, especially those in the manufacturing and retail sectors.
And, there’s more evidence that Tennessee’s tax reforms are paying off: The state ranked well in the Tax Foundation’s 2018 State Business Tax Climate Index. This annual study is designed to help business leaders, government policymakers, and taxpayers gauge how their states’ tax systems compare. Here’s how Tennessee stacked up across the board:
- Overall rank: 14th
- Corporate tax rank: 21st
- Individual income tax rank: 8th
- Sales tax rank: 45th
- Unemployment insurance tax rank: 22nd
- Property tax rank: 29th
The study authors also note that Tennessee’s rank will improve even more once the Hall income tax is fully phased out in 2022.
