Index score: 42.68

Colorado has fairly low corporate income and unemployment tax rates, strong property rights protections, and no estate tax. Colorado also enjoys a highly skilled work force (including many migrants from California), a tremendous education system and a great business environment, says Kerrigan. "Really there's no downside," she says, except, potentially, for some growth issues as the state deals with sprawl and the size of government. In next week's election, voters may decide to raise the minimum wage to $6.85 an hour.