Drew Johnson in BusinessTN:
Tennessee is one of only five states—along with Florida, South Dakota, Texas and Wyoming—that are both right-to-work and income tax-free. This is an almost sure-fire recipe for a welcoming business climate. Each of the other four states scored in the top-10 in the Fortune Small Business ranking and in the top-6 in the Tax Foundation report.
Why, then, does Tennessee fare worse than the four other right-to-work, income tax-free states? High sales taxes fueled by out-of-control government spending, along with state government's misguided attempts to "help" businesses appear to be to blame.