Where’s the best place to do business in the United States? Texas. So say America’s CEOs, who get to see the effects of state legislation first-hand.
An annual survey from Chief Executive Magazine, entitled The Best and Worst States, asked over 500 CEOs to grade the states. Grades were based on, "proximity to resources, regulation, tax policies, education, quality of living and infrastructure". Providing additional insight to the evaluations, CEOs were also asked to grade each state based on the following criteria: 1) Taxation & Regulation, 2) Workforce Quality, and 3) Living Environment."
JP Donlon, Editor-in-Chief said, "Our survey, year-over-year proves that those states with the worst records continue to practice the same policies that alienate businesses. As the nation’s economic problems continue to snowball and an increasing number of states experience budgetary problems, state governments ought to take a hard look at their taxation and unionization policies if they want to turn the page and attract new businesses and capital to their provinces." As the article further states the GSP (Gross State Product) of Texas grew by 4.2% compared to 1.9% for the national economy.
This survey is a shining example of how the Union works with states competing against each other for business and how those with a lighter touch of taxation and regulation can be successful. One can only hope that the leaders of Michigan, New York and California read this, and rather than coming up with new taxes (as seen recently in New York), conjure up new ways of slashing their way through red tape and lowering their taxes.
While the financial sector, auto manufacturers and others are handed other peoples’ money in receipt of bailout funds, there are many out there who are just asking for an environment that is conducive to undertaking business. Sadly that plea is likely to fall on deaf ears. Politicians are just too busy pandering to the corporate failures holding out their begging bowls to do anything sensible.
Click here to see the survey's results in full.