We decided to compare Forbes magazine’s “Best States for Business” rankings, when compared to Truth in Accounting’s (TIA) proprietary method for calculating “Taxpa yer Burden” which measures the debt burden for each citizen in a state.

Here is a chart to see how your taxpayer burden measures up when compared to Forbes study:

According to a Forbes study, the top 5 states to do business are VA, ND, UT, NC, and Colorado. Their taxpayer burden or taxpayer surplus is:

Virginia—burden $2,100

North Dakota—surplus of $22,300

Utah—surplus of $2,700

North Carolina—burden of $9,400

Colorado—burden of $3,500

The average taxpayer burden in the U.S. for a state is $8,344. This figure suggests that there is no correlation between business opportunity and taxpayer burden; possibly due to the fact that businesses have different accounting rules that they are required to follow, and states use outdated accounting tricks to balance their budget. However, a state government's financial condition is only one factor of overall local business-friendliness.   

You can investigate trends in Taxpayer Burdens, the ranking on the Forbes “Best States for Business” study, and many other metrics with our Charting Tool at State Data Lab.