Tax index score: 10.01
South Dakota's key advantage is its tax climate, says Raymond J. Keating, chief economist with the SBE Council. Election Day may change the landscape a bit: On the ballot are proposals to eliminate the state's cellphone tax and increase cigarette taxes.
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1. South Dakota
* 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.
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In exclusive rankings for FSB.com from the Small Business & Entrepreneurship Council*, we looked for places low on taxes and light on government regulations. These places aren't. (more)
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