Everyone talks about "high taxes" but a new study by the Tax Foundation shows that the U.S. has the highest business taxes in the world. In a recent article discussing the high corporate tax rates in the U.S., 25 states were shown to have a higher tax rate than the highest-taxed country, Japan. The tax rates were determined by adding the 35% U.S. corporate tax rate to the corporate tax rates in each state. Iowa has the highest tax rate (42.8%), with Pennsylvania, Minnesota, and Massachusetts close behind.

The problem with high tax rates is that they discourage businesses from locating in the state and they also keep investors out. As the Tax Foundation stated:

In the end, the key to improving America's business tax competitiveness is a partnership between federal and state lawmakers to work toward the common goal of lowering the overall business tax burden in the U.S. Otherwise, the U.S. will continue to fall behind in the global tax race simply by standing still.