States with the lowest tax rates — Louisiana, Alabama, Mississippi — in America also have the worst education systems and the worst state infrastructure. High-tech companies, and others that pay well, do not move to these states. Where did General Electric recently decide to move its corporate headquarters? Boston. Located in one of the highest-taxed states in the nation. Why? Because companies move to states where there is a strong education system with an educated population, and where the infrastructure is strong enough to support the needs of their businesses. Most of these states have high tax rates and, unlike the low tax states mentioned above, their economies are strong and growing.