Third-worst: New York
Like California and Vermont, New York has high personal and corporate income tax rates and taxes on individual and corporate capital gains. It also has high property taxes, high consumption-based taxes, high gas and diesel taxes, an added estate tax and poor private property protections, among other things, according to the SBE Council.

"New York is a real killer because the state imposes a 7.1% corporate tax rate and New York City has their own tax rate of 8.85%," Sori says. "If you're doing business in the city of New York, it's almost 16%."

Among Democratic Gov. Andrew Cuomo's agenda as he relocates to Albany is to transform New York's economy.

"Business built New York, and we are declaring that New York is once again open for business," Cuomo said in his State of the State Address.

Priorities include "holding the line on taxes and working to lower taxes in the future," specifically property taxes. Cuomo is looking to foster job creation, in part by enhancing the state's Excelsior Tax Credit Program, he says.

Cuomo also wants to expand support for minority- and women-owned small businesses, including "directing state agencies to double the current Minority and Women-Owned Business Enterprises participation goal from 10% to 20%; ease bonding restrictions for these business owners and expand the Owner-Controlled Insurance Program model to improve opportunities for small businesses," according to his address.

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