| RATINGS1 | DEVELOPMENT TREND INDICATOR | ||||||
|---|---|---|---|---|---|---|---|
| STATE | TAXATION AND REGULATION |
WORKFORCE QUALITY |
LIVING | DIRECTION | COMMENT | ||
| Alabama | 6.47 | 5.85 | 6.06 | ↔ | Pro-growth efforts overcome drag from federal cutbacks and Gulf oil spill. | ||
| Alaska | 6.07 | 5.52 | 3.78 | ↔ | New business-friendly state senate curbed proposed tax and regulation boosts. | ||
| Arizona | 6.95 | 7.10 | 7.94 | ↑ | This year sales tax expires and corporate income and property taxes fall. | ||
| Arkansas | 6.31 | 5.72 | 5.86 | ↔ | Lots of pro-business talk but there’s not enough action in legislature. | ||
| California | 1.58 | 6.02 | 7.00 | ↓ | Major income-tax hike in November hastens self-imposed economic decline. | ||
| Colorado | 5.97 | 7.42 | 8.61 | ↓ | Anti-business forces won 2012 elections and are delivering on promises. | ||
| Connecticut | 2.52 | 6.35 | 5.89 | ↔ | Trying to hold line on taxes and spending but solid-blue state lacks growth. | ||
| Delaware | 7.27 | 6.82 | 7.45 | ↓ | Advancing regulatory reform but suffering perceptual hit from Dems’ control. | ||
| Florida | 7.62 | 6.88 | 8.20 | ↓ | Business now assessing blow of Gov. Scott’s turnabout on Obamacare. | ||
| Georgia | 6.83 | 7.24 | 7.60 | ↓ | Must still address deficiencies in infrastructure and education system. | ||
| Hawaii | 2.49 | 4.07 | 7.63 | ↔ | Court struck down costly sick-leave law but replacement measure is unclear. | ||
| Idaho | 7.57 | 7.53 | 8.55 | ↔ | Legislature finally appears moving toward eliminating personal-property tax. | ||
| Illinois | 2.06 | 5.52 | 5.08 | ↓ | Keeps adding to toxic environment with new effort to boost minimum wage. | ||
| Indiana | 7.53 | 7.67 | 7.46 | ↔ | Now trying to monetize friendlier profile resulting from right to work. | ||
| Iowa | 6.17 | 7.34 | 6.80 | ↓ | Public-employee unions fight Gov. Branstad’s huge proposed property-tax cut. | ||
| Kansas | 6.88 | 7.34 | 7.22 | ↑ | Slashed income taxes as part of Gov. Brownback’s strong pro-business push. | ||
| Kentucky | 5.97 | 5.94 | 6.41 | ↓ | Blue-ribbon panel recommended service taxes and other business disincentives. | ||
| Louisiana | 7.25 | 7.03 | 7.72 | ↑ | Beefing up workforce development to finally escape Katrina’s shadow. | ||
| Maine | 3.14 | 4.86 | 6.05 | ↓ | Economically challenged state struggles to hold line on business penalties. | ||
| Maryland | 3.45 | 5.89 | 5.93 | ↓ | Passed major tax increases, now may boost minimum wage and sick leave. | ||
| Massachusetts | 2.65 | 6.54 | 5.57 | ↓ | Appears ready to boost income taxes and add services to sales tax. | ||
| Michigan | 3.85 | 5.14 | 4.99 | ↑ | Leap to right-to-work follows business-tax overhaul, with more reforms likely. | ||
| Minnesota | 3.97 | 7.76 | 7.15 | ↔ | Looking better to execs despite Gov. Dayton’s idea of big tax boosts. | ||
| Mississippi | 5.70 | 4.54 | 4.76 | ↓ | Quality-of-workforce issues remain drag on economically sluggish state. | ||
| Missouri | 5.80 | 6.52 | 6.40 | ↓ | Hasn’t done enough to spiff up for business, but considering right-to-work. | ||
| Montana | 7.35 | 7.05 | 7.55 | ↑ | Success of worker’s-comp reforms leads to help on business-equipment taxes. | ||
| Nebraska | 7.25 | 7.90 | 7.20 | ↑ | New budget surplus segues into push for comprehensive tax reform. | ||
| Nevada | 7.69 | 6.33 | 6.44 | ↔ | Economic slack offers business opportunities, but legislature is hostile. | ||
| New Hampshire | 6.68 | 6.92 | 7.28 | ↔ | Protecting status as overall tax haven of Northeast but seeking gas-tax rise. | ||
| New Jersey | 2.81 | 5.82 | 4.54 | ↑ | At least now the debate is over which tax to cut rather than to cut or raise taxes. | ||
| New Mexico | 4.63 | 5.05 | 6.94 | ↑ | Smiles at business by thwarting unions on bill regarding organizing drives. | ||
| New York | 2.01 | 5.95 | 5.01 | ↔ | Gov. Cuomo seems to be less concerned now about business-friendliness. | ||
| North Carolina | 7.08 | 7.76 | 8.26 | ↔ | Still needs to fix tax and regulatory issues that have been holding it back. | ||
| North Dakota | 8.48 | 7.48 | 5.93 | ↔ | State stays out of way of booms in energy production and agriculture. | ||
| Ohio | 5.31 | 6.74 | 6.25 | ↑ | Business appreciates Gov. Kasich’s help despite lots of legacy obstacles. | ||
| Oklahoma | 7.32 | 7.27 | 6.93 | ↑ | Finally addressing worker’s-comp woes to add to business-friendly setting. | ||
| Oregon | 3.48 | 6.46 | 7.02 | ↔ | Looks to tax and fee increases to finance yawning budget hole, but favors Nike. | ||
| Pennsylvania | 3.43 | 5.91 | 5.83 | ↑ | Gov. Corbett has resisted tax hikes and instituted some regulatory reforms. | ||
| Rhode Island | 2.69 | 4.62 | 5.31 | ↔ | Sky-high unemployment rate bespeaks continuing terrible business climate. | ||
| South Carolina | 7.54 | 7.01 | 8.22 | ↔ | Remains business-friendly but must close its unemployment-fund deficit. | ||
| South Dakota | 8.52 | 7.89 | 6.30 | ↔ | Resolute legislature has to keep knocking down efforts to boost sales taxes. | ||
| Tennessee | 8.20 | 7.36 | 7.85 | ↑ | Prospect of worker’s compensation reform makes it shine even brighter. | ||
| Texas | 8.72 | 8.06 | 7.82 | ↑ | Amazingly, the Lone Star State hasn’t let up and keeps building on its lead. | ||
| Utah | 7.87 | 8.40 | 8.19 | ↔ | Consolidating pro-business rep with more cuts in taxes and regulations. | ||
| Vermont | 2.53 | 4.76 | 5.71 | ↔ | Business fears new payroll tax to finance state’s outré single-payer health system. | ||
| Virginia | 7.11 | 7.68 | 8.01 | ↔ | Business hails new infrastructure spending but not resulting tax increases. | ||
| Washington | 4.38 | 6.63 | 6.84 | ↔ | Standoff between houses of legislature leaves financial reforms in the lurch. | ||
| West Virginia | 5.43 | 5.33 | 5.11 | ↔ | Maintains pro-business stance as it seeks to solve fracking dilemma. | ||
| Wisconsin | 5.59 | 7.41 | 7.24 | ↑ | Gov. Walker’s reelection was positive signal business leaders were seeking. | ||
| Wyoming | 8.81 | 7.49 | 7.49 | ↓ | 10-cents-a-gallon fuel-tax hike wasn’t good sign in basically pro-business state. | ||
| STATE GDP2 | UNEMPLOYMENT3 | ||||||
|---|---|---|---|---|---|---|---|
| STATE | % GROWTH 2010-2011 |
% 2010–2011 GROWTH vs. NAT’L AVERAGE (1.5%) |
UNEMPLOYMENT RATE % DEC. 2012 |
COMPARISON WITH NATIONAL UNEMPLOYMENT RATE % (7.8) |
|||
| Alabama | -1.8% | -2.3% | 6.8 | -1.0 | |||
| Alaska | 2.5% | 1.0% | 6.6 | -1.2 | |||
| Arizona | 1.5% | 0.0% | 7.9 | 0.1 | |||
| Arkansas | 0.3% | -1.2% | 7.1 | -0.7 | |||
| California | 2.0% | 0.5% | 9.8 | 2.0 | |||
| Colorado | 1.9% | 0.4% | 7.5 | -0.3 | |||
| Connecticut | 2.0% | 0.5% | 8.2 | 0.4 | |||
| Delaware | 1.6% | 0.1% | 7.1 | -0.7 | |||
| Florida | 0.5% | -1.0% | 7.9 | 0.1 | |||
| Georgia | 1.7% | 0.2% | 8.7 | 0.9 | |||
| Hawaii | -0.2% | -1.7% | 5.1 | -2.7 | |||
| Idaho | 0.6% | -0.9% | 6.3 | -1.5 | |||
| Illinois | 1.3% | -0.2% | 8.6 | 0.8 | |||
| Indiana | 1.1% | -0.4% | 8.3 | 0.5 | |||
| Iowa | 1.9% | 0.4% | 5 | -2.8 | |||
| Kansas | 0.5% | -1.0% | 5.5 | -2.3 | |||
| Kentucky | 0.5% | -1.0% | 8 | 0.2 | |||
| Louisiana | 0.5% | -1.0% | 5.6 | -2.2 | |||
| Maine | -0.4% | -1.9% | 7.2 | -0.6 | |||
| Maryland | 0.9% | -0.6% | 6.7 | -1.1 | |||
| Massachusetts | 2.2% | 0.7% | 6.7 | -1.1 | |||
| Michigan | 2.3% | 0.8% | 8.9 | 1.1 | |||
| Minnesota | 1.2% | -0.3% | 5.4 | -2.4 | |||
| Mississippi | -0.8% | -2.3% | 8.9 | 1.1 | |||
| Missouri | 0.0% | -1.5% | 6.6 | -1.2 | |||
| Montana | 0.0% | -1.5% | 5.6 | -2.2 | |||
| Nebraska | 0.1% | -1.4% | 3.8 | -4.0 | |||
| Nevada | 1.2% | -0.3% | 9.8 | 2.0 | |||
| New Hampshire | 1.5% | 0.0% | 5.7 | -2.1 | |||
| New Jersey | -0.5% | -2.0% | 9.5 | 1.7 | |||
| New Mexico | 0.2% | -1.3% | 6.6 | -1.2 | |||
| New York | 1.1% | -0.4% | 8.2 | 0.4 | |||
| North Carolina | 1.8% | 0.3% | 9.4 | 1.6 | |||
| North Dakota | 7.6% | 6.1% | 3.2 | -4.6 | |||
| Ohio | 1.1% | -0.4% | 6.7 | -1.1 | |||
| Oklahoma | 1.0% | -0.5% | 5.1 | -2.7 | |||
| Oregon | 4.7% | 3.2% | 8.3 | 0.5 | |||
| Pennsylvania | 1.2% | -0.3% | 7.9 | 0.1 | |||
| Rhode Island | 0.8% | -0.7% | 9.9 | 2.1 | |||
| South Carolina | 1.2% | -0.3% | 8.6 | 0.8 | |||
| South Dakota | 0.8% | -0.7% | 4.3 | -3.5 | |||
| Tennessee | 1.9% | 0.4% | 7.6 | -0.2 | |||
| Texas | 3.3% | 1.8% | 6.2 | -1.6 | |||
| Utah | 2.0% | 0.5% | 5.4 | -2.4 | |||
| Vermont | 0.5% | -1.0% | 4.9 | -2.9 | |||
| Virginia | 0.3% | -1.2% | 5.6 | -2.2 | |||
| Washington | 2.0% | 0.5% | 7.5 | -0.3 | |||
| West Virginia | 4.5% | 3.0% | 7.4 | -0.4 | |||
| Wisconsin | 1.1% | -0.4% | 6.7 | -1.1 | |||
| Wyoming | -1.2% | -2.7% | 4.9 | -2.9 | |||
| DOMESTIC MIGRATION4 | STATE GOVERNMENT5 | STATE-LOCAL TAX BURDEN6 | ||||
|---|---|---|---|---|---|---|
| STATE | DOMESTIC NET MIGRATION (2001-2009) |
RANK | DEBT PER CAPITA FISCAL YEAR 2010 |
STATE & LOCAL GOV’T EMPLOYEES PER 10,000 RESIDENTS |
RATE | COMPARED TO NATIONAL AVERAGE (9.9%) |
| Alabama | 87,199 | 14 | 1,841 | 615.3 | 8.33% | -1.68% |
| Alaska | -7,360 | 29 | 9,032 | 766.00 | 1.77% | -2.89% |
| Arizona | 696,793 | 3 | 2,188 | 473.07 | 9.12% | -1.45% |
| Arkansas | 75,163 | 16 | 1,464 | 585.3 | 8.58% | 0.16% |
| California | -1,490,105 | 50 | 4,008 | 504.6 | 8.11% | 1.37% |
| Colorado | 202,735 | 10 | 3,335 | 541.9 | 7.44% | -0.77% |
| Connecticut | -94,376 | 42 | 8,465 | 537.4 | 6.35% | 2.41% |
| Delaware | 45,424 | 18 | 6,157 | 598.8 | 0% | -0.66% |
| Florida | 1,154,213 | 1 | 2,155 | 489.5 | 6.62% | -0.55% |
| Georgia | 550,369 | 5 | 1,426 | 545.7 | 6.84% | -0.9% |
| Hawaii | -29,022 | 33 | 5,682 | 559.8 | 4.35% | 0.24% |
| Idaho | 110,279 | 13 | 2,478 | 538.6 | 6.02% | -0.49% |
| Illinois | -614,616 | 49 | 4,790 | 503.1 | 8.2% | 0.34% |
| Indiana | -21,467 | 32 | 3,650 | 536.3 | 7% | -0.27% |
| Iowa | -49,589 | 40 | 1,690 | 611.2 | 6.81% | -0.28% |
| Kansas | -67,762 | 41 | 2,276 | 676.7 | 8.26% | -0.21% |
| Kentucky | 81,711 | 15 | 3,323 | 582.7 | 6% | -0.51% |
| Louisiana | -311,368 | 45 | 3,861 | 605.1 | 8.85% | -2.11% |
| Maine | 29,260 | 23 | 4,542 | 580.7 | 5% | 0.4% |
| Maryland | -95,775 | 43 | 4,250 | 535.2 | 6% | 0.33% |
| Massachussets | -274,772 | 44 | 11,310 | 517.5 | 6.25% | 0.57% |
| Michigan | -537,471 | 48 | 3,251 | 491.0 | 6% | -0.02% |
| Minnesota | -46,635 | 39 | 2,206 | 541.8 | 7.18% | 0.93% |
| Mississippi | -36,061 | 35 | 2,182 | 647.7 | 7% | -1.17% |
| Missouri | 41,278 | 20 | 3,416 | 557.3 | 7.49% | -0.91% |
| Montana | 39,853 | 21 | 4,430 | 585.2 | 0% | -1.25% |
| Nebraska | -39,275 | 36 | 1,279 | 642.0 | 6.77% | -0.17% |
| Nevada | 361,512 | 6 | 1,646 | 431.9 | 7.93% | -1.63% |
| New Hampshire | 32,588 | 22 | 6,341 | 550.0 | 0% | -1.76% |
| New Jersey | -451,407 | 47 | 6,944 | 593.0 | 6.97% | 2.56% |
| New Mexico | 26,383 | 24 | 4,261 | 680.4 | 7.24% | -1.42% |
| New York | -1,649,644 | 51 | 6,694 | 634.5 | 8.48% | 2.9% |
| North Carolina | 663,892 | 4 | 1,983 | 599.7 | 6.85% | -0.05% |
| North Dakota | -18,071 | 31 | 3,282 | 649.5 | 6.39% | -0.96% |
| Ohio | -361,038 | 46 | 2,703 | 534.6 | 6.75% | -0.15% |
| Oklahoma | 42,284 | 19 | 2,664 | 597.9 | 8.66% | -1.13% |
| Oregon | 177,375 | 11 | 3,533 | 509.2 | 0% | 0.1% |
| Pennsylvania | -33,119 | 34 | 3,526 | 478.4 | 6.34% | 0.38% |
| Rhode Island | -45,159 | 38 | 9,018 | 510.8 | 7% | 0.99% |
| South Carolina | 306,045 | 7 | 3,419 | 577.2 | 7.13% | -1.49% |
| South Dakota | 7,182 | 27 | 4,291 | 545.7 | 5.39% | -2.28% |
| Tennessee | 259,711 | 8 | 922 | 527.8 | 9.45% | -2.15% |
| Texas | 838,126 | 2 | 1,679 | 563.9 | 8.14% | -1.93% |
| Utah | 53,390 | 17 | 2,356 | 494.9 | 6.68% | -0.58% |
| Vermont | -1,505 | 28 | 5,585 | 641.0 | 6.14% | 0.25% |
| Virginia | 164,930 | 12 | 3,131 | 574.0 | 5% | -0.61% |
| Washington | 239,037 | 9 | 4,098 | 527.3 | 8.8 | -0.57% |
| West Virginia | 17,727 | 26 | 3,860 | 558.5 | 6% | -0.15% |
| Wisconsin | -11,981 | 30 | 3,929 | 503.0 | 5.43% | 1.21% |
| Wyoming | 22,883 | 25 | 2,694 | 918.3 | 5.34% | -2.09% |
Sources: Sources: 1Chief Executive Magazine, 2Bureau of Economic Analysis, 3Bureau of Labor Statistics, 4NewGeography.com, 5,6The Tax Foundation
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