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Alaska is the 32nd Best State for Business 2014

Alaska is considered a “best state” for startups. Since Alaska has no individual income or state-level sales taxes, more entrepreneurs are burning the long, midnight oil in the land of the midnight sun. That qualified it for the No. 4 spot in the Tax Foundation’s latest State Business Tax Climate Index. Last year, the state cut taxes for small businesses earning $222,000 or less, and oil-tax simplification will give Alaska a great economic advantage. The state tied for No. 4 in the three-year Kaufmann Index.

Previous State: Montana Next State: Washington

No. 32 Alaska

Taxations & Regulations

Workforce Quality

Living Environment

Key Metrics
State GDP 

  • % Growth ’12-’13: -2.5
  • % Growth ’11-’12 v. Nat’l Avg. (2.5%): -1.4

Unemployment

  • Unemployment Rate Dec. 2013 %: 6.4
  • Comparison with Nat’l Rate (6.70%): -0.3

Domestic Migration

  • Domestic Net Migration 2013: -4,006
  • Rank: 35

State Government

  • State Debt per Capita Fiscal Year ’13 ($): 9,294
  • State & Local Gov’t Employees per 10k Residents: 766

State-Local Tax Burden

  • Rate (%): 7.0%
  • Compared to Nat’l Avg. (9.9%): -2.89%
Key Companies
  • General Communication
  • Alaska Communications Systems
  • First National Bank Alaska
Development Trend Indicator: Neutral
Oil-tax reform helps competitiveness but minimum-wage hike is threatened.


Based on CEO Survey by ChiefExecutive.net

Sources:
Bureau of Economic Analysis
Bureau of Labor Statistics
NewGeography.com
The Tax Foundation

About JP Donlon

JP Donlon is the Editor-in-Chief of Chief Executive magazine.