Chief Executive Magazine Issues 2014 State Biz Climate Rankings
In its latest survey, Chief Executive magazine again ranked Texas the best state for business, followed by Florida, Tennessee, North Carolina and South Carolina.
I’ve publicly predicted that the survey would rank California the worst state for business for the 10th year in a row because of what has been happening with tax increases and more employer-unfriendly labor laws. Out-of-control public pension obligations are also a concern because they represent “tax increases in waiting.”
Well, that 10-year mark is exactly what happened. So, again, California ranks 50th. Rounding out the bottom five are New York, Illinois, New Jersey and Massachusetts.
Here are some of the magazine’s observations:
California has gained breathing space since Governor Jerry Brown took office and is credited with a budget surplus. But despite the return of fiscal discipline, it has exchanged acute problems for merely chronic ones. It is a state that continues high personal income tax rates and regulates with a very heavy hand. Its top, marginal tax rate of 33 percent is the third-highest tax rate in the industrialized world, behind only Denmark and France.
Note: I have no intention of starting an argument with the fine folks at Chief Executive. However, considering Sacramento’s plans to increase spending by billions of dollars on wretched projects, and with new tax increases being proposed, I doubt that we in this state have a “return of fiscal discipline.”
The magazine also states:
“California likes to say that Texas can have all those low-wage jobs,” says Richard Fisher, CEO of the Dallas Federal Reserve, “but from 2000 to 2012, job growth percentage change by wage quartile was better in Texas.” Texas won another bragging right last February when Site Selection magazine reported that it surpassed California in global technology exports in 2012.
Congratulations to JP Donlon, Editor-in-Chief of Chief Executive and to the magazine’s team for a remarkable and valuable survey.
Joseph Vranich of Spectrum Location Solutions helps companies find great locations in which to grow. Joe also is a keynote speaker on the challenges and benefits of businesses relocating out of high-tax, high-cost, over-regulated states. More information is available at Biography and Speaking Availability.Explore posts in the same categories: Best States for Business, Business Relocation, Businesses leave California, California Out-Migration, California Regulations, California Taxes, Chief Executive, Income Tax, Leaving California, Los Angeles, Manufacturing, Retroactive Tax, Site Selection, Worst States for Business