Report: Texas, Florida Best States for Business; California worst | national news

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(The Center Square) – Texas and Florida are again the best states for business, according to this year’s annual report ranking published by Chief Executive Magazine. California remains the worst.

In its “Best & Worst States for Business Survey of CEOs,” the magazine published the results of its annual survey of nearly 700 CEOs, corporate presidents, and business owners in every state.

Texas has ranked first every year since 2001, when the magazine began ranking state business environments. Texas ranks first largely because it has no corporate taxes, has a rapidly growing population, a low-regulatory business climate, and a diverse, skilled workforce.

Florida placed second, with Tennessee, Arizona and North Carolina rounding out the top five.

The lowest states have always remained there, especially the bottom five, according to the survey. According to the survey, the worst states for business are California, New York, Illinois, New Jersey and Washington.

High taxes, heavier regulatory burdens, and a high cost of living are cited as significant factors helping to keep lower-ranked states down.

“Despite some of the best talent pools and education systems in the country, it will take a real revolution in their tax and regulatory structures to gain traction with CEOs – and get out of the ground,” the report says.

Regarding Texas, the magazine said, “Texas has experienced an era of breathtaking growth based on an expansion of its economy into automobile production, the development of digital technology and shared services as well as the grassroots traditional oil, gas and refining industries. ”

“Texas is a beacon of freedom and opportunity thanks to our competitive business environment, no corporate or personal income taxes, limited regulations, and endless opportunities that allow all Texans to thrive,” Gov. Greg Abbott said in a statement announcing the Texas rankings. .

Florida has also consistently topped the CEO rankings, the magazine notes.

Florida’s high ranking is due to “the consistently business-friendly approach under Governor Ron DeSantis that culminated over the past two years with his hands-off approach to Covid shutdowns,” the magazine said. “While Governor Ron DeSantis’ bold moves over the past year have often gone against CDC guidance and national consensus, there are strong reasons it has helped the state’s economy. weather the storm.”

He also points to several companies that have moved to Florida and its highest corporate income tax rate of 4.5%.

Although Texas holds the top spot, Florida outperforms Texas in many of the categories cited.

Florida ranks 4th on Tax Foundation’s State Business Tax Climate Index, report notes; Texas ranks 11th. When it comes to quality of life, the magazine ranks Florida 10th and Texas 31st.

As for unemployment, Texas’ March seasonally adjusted unemployment rate of 4.4% was higher than the nation’s 3.6% and Florida’s 3.2%.

While Texas and Florida consistently rank high and California low, the report highlighted a silver lining for the Golden State.

“While it’s hard to ignore the growing number of companies moving their headquarters from California to other states, the Golden State remains an economic powerhouse with the 5th largest gross domestic product in the world,” said he declared.

“CEOs are often critical of California’s business climate and regulations, but they aren’t shy about settling in and tapping into the best talent market in the country. While Tesla, Oracle, Palantir and Hewlett-Packard Enterprise announced their departure from the state over the past year, companies like Google, Apple, L’Oreal and Takeda Pharmaceuticals are doubling down.

Most Businesses Leaving California Move to Texas, Stanford University study found last year, leaving behind California’s 8.8% corporate tax rate.

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