However , another study found that states with a more progressive personal income tax have a higher percentage of sole proprietors in their workforce .
They also found that states with an inheritance or estate tax tend to have lower entrepreneurship rates when using a tax - based measure .
Another study found that states with a more progressive personal income tax have a higher percentage of sole proprietors in their workforce .
They also found that states with an inheritance or estate tax tend to have lower entrepreneurship rates when using a tax - based measure .