Indiana is #12 in the United States when it comes to doing business; the National Tax Foundation found that Indiana in the top 24% for business climate. Indiana is better than %76 of the rest of the country at attracting business to Hoosier-land!
The National Tax Foundation goes through an arduous process each year to determine a ranking order for states when it comes to being business friendly. And in 2010, because of the savviness of Indianapolis lawmakers, we rank in the top 24%.
The National Tax Foundation creates a relative scale on which to measure states against one another when it comes to tax incentives and business climate. This scale is known as the State Business Tax Climate Index (or SBTCI). The American market functions at a disadvantage to foreign businesses because United States businesses pay one of the highest corporate tax rates of any industrialized country. However, within the boundaries of our nation, companies have a choice on where to produce goods, jobs, and economic stimulus. Obviously, we want the National Tax Foundation to tell businesses that Indiana is the place to be.
Relativity is all that matters in the National Tax Foundation’s scale. And in the Midwest this year, Indiana won out. A business take many things into account when they locate in a state. They consider tax incentives and other non-tax factors such as a state’s economy, Indianapolis school systems, Indianapolis people and more. The National Tax Foundation uses all of this to calculate rankings on their SBTCI scale. And lawmakers make it their job to make sure these things glimmer for the makers of the scale and when businesses are looking to move in.
What is more, states want to make sure that the National Tax Foundation ranks them lower than their neighboring states, as this will also attract business to their area. The SBTCI is a tool that both lawmakers and business owners will use for the next year to determine where business will go.
So not only is it impressive that the National Tax Foundation ranked Indiana # 12 in the nation, but relative to its neighboring states, Indiana’s ranking is the lowest. Illinois came in at #30, Michigan at #17, Kentucky at #20, and Ohio at # 47, making it one of the five worse states in the nation to bring a business to.
The ranking from the National Tax Foundation is important to everything in Indiana, from Indianapolis arts to Indianapolis education, to Indianapolis real estate. Without new business coming into Indiana, none of the Indianapolis culture that makes the Circle City so rich will continue to survive. So this week the people of Indianapolis and the surrounding Indianapolis metro area can look forward to a year in which business from across the nation will shop around in our backyard.
With the job market as rigid as it has been in the past months, the ranking from the National Tax Foundation is sure to mean change in Indiana cities. So maybe the people who helped get Indiana a #12 ranking, the ones who go to the Indiana State Capitol everyday, might just be looking out for us after all. Indianapolis business is coming up roses.