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FSB Who loves small business best? 2006
Which states are low on taxes and light on government regulations? Exclusive rankings for FSB.com from the Small Business & Entrepreneurship Council.*
Hawaii
Rank: 44
Taxes
Top personal income tax rate 8.25%
Top capital gains tax rate on individuals 7.25%
Top corporate income tax rate 6.40%
S-corporations tax rate 0.00%
State AMT? No
Estate or inheritance tax? No
Gas tax ($ per gallon) 0.318
Health-insurance regulations
No individual may be turned down  
Self-employed individuals may not be turned down  
Energy costs
Electricity (cents/kilowatthour) 20.39
Gas (average price per gallon)** $2.92
Bureaucracy
State and local govt. bureaucrats per 100 residents 5.38
Labor
State minimum wage/hour $6.75
"Right to work" state? No****
Footnote:
* SBE Council, a Washington, D.C.-based nonprofit which advocates for reduced government taxes and regulations on small business, tends to lobby for the Republican agenda when it comes to taxes and regulations.
** Source: Oil Price Information Service (http://www.opisnet.com). Gas prices are not part of the SBEC's Small Business Survival Index.
**** In right-to-work states, employees are not required to join a union or pay union dues to work at companies with labor unions.
Low taxes
1 South Dakota
2 Nevada
3 Wyoming
Low energy costs
1 Kentucky
2 West Virginia
3 Missouri
How we ranked the states
Which states are low on taxes and light on government regulations? In these exclusive rankings for FSB.com, the Small Business & Entrepreneurship Council, a nonprofit advocacy group in Washington, D.C. used their Small Business Survival Index to rate the 50 states and Washington, D.C. according to some of the major government-imposed or -related costs affecting investment, entrepreneurship, and business. SBE Council, which advocates for reduced government taxes and regulations on small business, supports a mostly Republican agenda. (more)
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