The Small Business and Entrepreneurship Council (SBE Council) just published its Business Tax Index 2012. \u00a0The list covers what the SBE Council's formula determines is the " Best to Worst Tax Systems for Entrepreneurship and Small Business." \u00a0Topping the list of the most favorable states for small businesses and startup entrepreneurs and investors are: 1) South Dakota 2) Texas 3) Nevada 4) Wyoming 5) Washington 6) Florida 7) Alaska 8 ) Alabama 9) Ohio 10) Colorado There is an interactive map showing the best states for businesses taxes, in green. Middle of the road states are blue. \u00a0And the worst states are in red: \u00a0 And what are the worst states for business taxes by name? \u00a0It probably won't be a surprise that many of them are in the Northeast, long having reputations for being expensive jurisdictions to do business in: 42) Connecticut 43) Hawaii 44) Vermont 45) California 46) Maine 47) Iowa 48) New York 49) New Jersey 50) Minnesota 51) District of Columbia Basis for Tax Rankings The Business Tax Index 2012 ranks the states from best to worst based on the cost of their tax systems on entrepreneurs \u00a0and small businesses. \u00a0The Index takes into account 18 different tax measures, and combines them into a single score so the different states \u00a0and the District of Columbia can be compared. The 18 measures include income tax, individual capital gains rate, corporate income tax, added income tax on S-Corporations, \u00a0property taxes, sales tax, death tax, Internet access tax, the so-called "Amazon" nexus tax, gas tax and wireless tax -- among others. According to Raymond J. Keating, chief economist for the SBE Council and author of the report, said,\u00a0"All taxes matter, whether imposed at the federal,\u00a0state\u00a0or local level of government.\u00a0 They matter to consumers, entrepreneurs, investors and businesses.\u00a0\u00a0State\u00a0and local levies matter in terms of a\u00a0state's competitiveness.\u00a0 And they matter when it comes to economic growth and job creation." Comparisons With Other Years And so how does the listing compare with past years? \u00a0I checked the 2010 state tax rankings and found very little difference in either the top or bottom rankings. \u00a0One notable exception: \u00a0Massachusetts managed to pull itself out of the bottom 10 and in 2012 now ranks number 35. \u00a0Hawaii and Connecticut, on the other hand, slipped a few spots since 2010. Other states may have \u00a0shifted a bit here and there, but the top and bottom are still largely the same two years later (or the states were near misses with making it into the top or bottom 10). This year, the SBE Council's 2012 report notes these positive and negative developments: "On the positive side, states like Indiana, Arizona, Maine, Michigan, North Dakota, Delaware, and Oklahoma made some positive steps forward in providing tax relief. Also, in addition to some recent pro-competitive moves regarding income taxes, Ohio\u2019s death tax will be eliminated next year (to be reflected in next year\u2019s Business Tax Index), and Indiana has begun a long phase out of its death levy. In contrast, Oregon, Connecticut, Illinois and New York officials, for example, made their states less competitive due to various tax increases."