Second-worst: New Jersey
New Jersey has a history of being unfriendly to business.

Like others on the list, New Jersey has high personal income and corporate income taxes as well as individual and corporate capital gains. It also has the second-highest property taxes in the nation, behind New Hampshire, according to the SBE Council's report.

On the other hand, the Garden State has fairly low consumption-based taxes, a low crime rate and low gas and diesel taxes, the report notes.

Gov. Chris Christie seems dedicated to keeping businesses in New Jersey, but his plans are unclear.

The Republican governor "quietly dismantled" the state's program for minority- and women-owned small businesses last year, according to media reports, but signed into law Senate Bill No. 2370, which calls for expanding New Jersey's Business Retention and Relocation Assistance Grant program.

The program has helped businesses preserve jobs, expand operations and reinvest through the award of corporation business tax credits. Through the program, corporations will get a maximum tax credit of $2,250 per year for six years, per job retained in the state, versus a maximum one-time tax credit incentive of $1,500 per job retained.

In an address this month, Christie said he plans to put forth proposals to reform the state tax system.

"If New Jersey is to be a home for growth, we need to reform the taxes we place on business and individuals and begin to roll them back," Christie said.

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