The Tax Foundation, a Washington-based think tank started in 1937, rates states' tax structures on major business taxes, individual income taxes, sales taxes, unemployment insurances taxes and property taxes.

"Good state tax systems levy low, flat rates on the broadest bases possible, and they treat all taxpayers the same," the report said.

The states with the best business tax climates were Wyoming, South Dakota, Alaska, Nevada and Florida. The states with the worst business climates were Rhode Island, Ohio, New Jersey, New York and Vermont.

Dan Gerlach, Gov. Mike Easley's chief budget adviser, said the foundation's index was not a true measure of North Carolina's business climate. Among other things, Gerlach said, the study is biased in favor of states that have no income or sales tax and penalizes states such as North Carolina that provide economic incentives to new industries.

"Our economic performances continues to outpace the nation," Gerlach said.

Gerlach said numerous groups, including Forbes.com and Site Selection magazine have given North Carolina good marks for its business climate. Gerlach said some of the taxes were being used to provide an educated work force sought by companies.

"This report is fundamentally flawed and should not be taken seriously, given the overwhelming evidence on job creation," Gerlach said.

Burr passes along donation

U.S. Sen. Richard Burr, a Republican, has given a $1,000 political contribution from disgraced former U.S. Rep. Mark Foley to Brenner Children's Hospital in Winston-Salem.

The move came after state Democratic chairman Jerry Meek urged Burr and others to return the contributions from the Florida congressman caught up in the Congressional page scandal.

Burr said he decided on his own to donate the money. But Burr said Foley is not the only politician with a cloud over his head, noting the investigations surrounding state House Speaker Jim Black, a Democrat in Raleigh.

Burr said the state Democratic Party had received more than $1 million from Black since 1998 -- funds that were redistributed to Democratic House candidates.

"If indicted," Burr wrote, "I would expect you to show the same backbone which you called on me to display and return the money which Speaker Black has donated to your party.

I would expect you to call on all candidates for office, Democrat and Republican alike, who have received contributions from Speaker Black to also return those funds."

Briefly

Former U.S. Sen. John Edwards is in China through Thursday meeting with senior Chinese government officials. Edwards, a likely 2008 presidential candidate, recently returned from Africa ... State Treasurer Richard Moore is in Washington today to speak to the National Association of Corporate directors' annual Corporate Governance Conference ... State Democratic Chairman Jerry Meek is spending the week campaigning for 8th Congressional District Democratic candidate Larry Kissell, who is challenging Republican U.S. Rep. Robin Hayes ... Heman Clark of Raleigh, a former secretary of crime control and public safety, received the Order of the Long Leaf Pine Award from Gov. Mike Easley last week.