September 28, 2000

Washington, D.C.-Today, the Small Business Survival Committee (SBSC) published the "Small Business Survival Index 2000."  This fifth annual report ranks the states according to how friendly their public policy environments are toward small businesses and entrepreneurship.

The states are scored according to 16 measures: top personal income tax rate, top capital gains tax rate on individuals, top corporate income tax rate, state and local property taxes, state and local sales taxes, state death taxes, average state unemployment tax rate, health insurance tax rate, electric utilities tax rate, workers' compensation costs, crime rate, right-to-work status, number of state and local government bureaucrats, tax limitation status, Internet access tax, and state gas taxes.  These are tied into one Small Business Survival Index score for each state.

In terms of their policy environment, the most entrepreneur-friendly states under the "Small Business Survival Index 2000" are: 1) South Dakota, 2) Nevada, 3) Wyoming, 4) New Hampshire, 5) Texas, 6) Florida, 8) Alabama, 9) Michigan, 10) Mississippi, 11) Tennessee, 12) Alaska, 13) Indiana, 14) Missouri, and 15) South Carolina.

In contrast, the most anti-entrepreneur policy environments are offered by the following: 37) Vermont, 38) Iowa, 39) California, 40) New York, 41) North Carolina, 42) Maine, 43) New Jersey, 44) Oregon, 45) Montana, 46) Ohio, 47) Minnesota, 48) New Mexico, 49) Rhode Island, 50) Hawaii, and 51) District of Columbia.

Looking ahead, SBSC chief economist, author of the "Small Business Survival Index 2000," notes: "It is clear that taxes greatly impact investment, entrepreneurship, small business opportunities, and a state's overall competitiveness.  Unfortunately, with revenues flooding state and local government coffers across the nation, the move for substantive, across-the-board tax relief, which would positively impact all types and sizes of business, has been, at best, disappointing, or, at worst, almost nonexistent."

Keating continued: "Recent robust economic growth has provided a massive boost in state and local government revenue.  But rather than cutting taxes to secure economic opportunity and long-term economic growth, the overwhelming response has been to increase government spending.  It is time for state and local officials to stop the spending binge, and instead, push through pro-growth, pro-entrepreneur tax cuts."

Rank	State	SBSI Score
1	South Dakota	24.880
2	Nevada	26.680
3	Wyoming	27.400
4	New Hampshire	30.450
5	Texas	30.497
6	Florida	30.950
7	Washington	32.200
8	Alabama	32.360
9	Michigan	33.898
10	Mississippi	34.180
11	Tennessee	34.280
12	Alaska	37.310
13	Indiana	37.660
14	Missouri	37.890
15	South Carolina	38.290
16(t)	Colorado	38.880
16(t)	Virginia	38.880
18	Louisiana	39.324
19	Illinois	39.530
20	North Dakota	40.939
21	Georgia	41.000
22	Maryland	41.030
23	Arizona	41.048
24	Pennsylvania	41.120
25	Kentucky	41.150
26	Delaware	41.700
27	Massachusetts	42.670
28	West Virginia	43.780
29	Wisconsin	43.912
30	Nebraska	44.180
31	Oklahoma	44.790
32	Idaho	45.010
33	Utah	45.380
34	Arkansas	45.415
35	Connecticut	46.220
36	Kansas	46.754
37	Vermont	46.970
38	Iowa	47.074
39	California	48.250
40	New York	49.410
41	North Carolina	49.430
42	Maine	50.490
43	New Jersey	50.610
44	Oregon	51.060
45	Montana	51.214
46	Ohio	51.606
47	Minnesota	52.160
48	New Mexico	53.150
49	Rhode Island	53.946
50	Hawaii	63.485
51	District of Columbia	68.185

A full copy of the "Small Business Survival Index 2000" is available on SBSC's website at http://www.sbsc.org/survivalindex.asp.  For more information or an interview, please call SBSC at 202-785-0238.

SBSC is a nonpartisan, nonprofit small business advocacy group with more than 60,000 members across the nation.