51. Washington D.C.
The nation's capital bottoms the Small Business & Entrepreneurship Council's list again, largely because of its steep corporate and personal income taxes, which are second and sixth in the country, respectively. Plus, the D.C. crime rate is the highest in the country, though that is generally restricted to the Southeast quadrant. "D.C. is all about location, location, location, but Virginia, which moved up the list, is just around the corner," says Karen Kerrigan, CEO of the SBE Council. "Businesses would rather move outside the city than pay high taxes."
