Day: May 8, 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.

Utah’s population is growing faster than the national average, and the government has created the “Envision Utah” plan to manage that growth productively.

Alabama’s GDP growth was up 1.2% in 2012 vs. 2011, while its unemployment and tax rates were both less than the national average. The Center for Business and Economic Research at the University of Alabama is predicting a 2.4% output growth rate for 2014, which would, in turn, generate 25,000 jobs.

Montana had a lower ranking than all four of its border states. Idaho came in at 28th; North Dakota was 12th; South Dakota 15th and Wyoming 18th. It’s 2.1% GDP growth is lower than the national average, but so are its unemployment and tax rates (5.2% and 8.6%, respectively.)

Here’s a look at how our CEOs graded the states for this year’s survey. For additional reference are other important state statistics.

“Gov. Corbett came into office in 2011 inheriting a $4.2 billion budget deficit and a business climate much maligned for nearly a decade,” Kelli Roberts, Deputy Director of Communications to Gov. Tom Corbett, told Chief Executive magazine in February. In two and a half years, the governor eliminated significant budget deficits without raising taxes on families and implemented significant business tax and climate reforms … [putting] Pennsylvania’s economy back on the path to prosperity.”

Despite falling six spots from last year, one respondent reported that Oklahoma was “business friendly,” possibly due to the fact that Oklahoma did trim some taxes last year. However, the state also dropped from 14th to 21st for economic rank in the American Legislative Exchange Council economic competitiveness assessment.

In Washington state, small businesses are adding jobs faster than in any other state in the country, according to CCNMoney.com. The jobless rate was just 6.7% in March, with 6,700 new jobs created, according to GeekWire. In Seattle, the jobless rate was even lower, at 5.2%. The city plans to raise its minimum wage to $15/hour.

Recent investments by companies such as Apple, SolarCity and eBay have helped turn the state in the right business-friendly direction. Adding to the progress is a congressional push toward building out Interstate 11, to create a superhighway from Phoenix to Nevada.

According to the U.S. Bureau of Labor Statistics, 46,000 new jobs were added to the Kansas economy over the last three years. Compared to neighboring states, Kansas ranks fourth out of five for job growth. However, when looking at the 58,000 jobs Kansas lost in 2009, according to the Kansas City Star, it appears that Kansas is on its way back up.