Categories: 2014 Best & Worst States

Massachusetts is the 47th Best State for Business 2013

Previous State: New Jersey Next State: Illinois

No. 47Massachusetts

Taxations & Regulations

Workforce Quality

Living Environment

Based on CEO Survey by ChiefExecutive.net

Key Metrics
State GDP % Growth ’10-’11: 2.2 % Growth ’10-’11 v. Nat’l Avg. (1.5%): 0.7 Unemployment Unemployment Rate Dec. 2012 %: 6.7 Comparison with Nat’l Rate (7.80%): -1.1 Domestic Migration Domestic Net Migration ’10-’11: -10,886 Rank: 40 State Government Debt per Capita Fiscal Year ’10 ($): 11,310 State & Local Gov’t Employees per 10k Residents: 517.5 State-Local Tax Burden Rate (%): 9.3 Compared to Nat’l Avg. (9.9%): -0.57

Key Metrics

State GDP

% Growth ’10-’11: 2.2
% Growth ’10-’11 v. Nat’l Avg. (1.5%): 0.7

Unemployment

Unemployment Rate Dec. 2012 %: 6.7
Comparison with Nat’l Rate (7.80%): -1.1

Domestic Migration

Domestic Net Migration ’10-’11: -10,886
Rank: 40

State Government

Debt per Capita Fiscal Year ’10 ($): 11,310
State & Local Gov’t Employees per 10k Residents: 517.5

State-Local Tax Burden

Rate (%): 9.3
Compared to Nat’l Avg. (9.9%): -0.57

Key Companies
State Street Corporation Raytheon The TJX Companies BJ’s Wholesale Club Boston Scientific Smurfit-Stone Container

Development Trend Indicator: Negative
Appears ready to boost income taxes and add services to sales tax.

CEO Comments
“If I were designing Hell for a company, I couldn’t do as good a job as Massachusetts has. We will be leaving the state within the next year.” “We are moving out of CA, MI, MA and NY in 2013 and terminating our employees there. The regulatory and tax environment has become untenable.” “Massachusetts is returning to the state of Taxachusetts, thanks to Governor Deval Patrick and the overwhelming Democratic party majority in both houses of the Legislature.” “Taxation and regulation are always the key barometers. Massachusetts and Oregon are the worst.” “Massachusetts has been strong economically because of small to mid-size technology driven companies. Legislators moving towards increased regulations and taxes on the group that has been successful (ex: medical device) could begin to undermine the positive direction. While there may be excitement here for early stage technology companies, more established companies may consider growth and expansion elsewhere.” “MA is continuing its trend of raising taxes in every manner possible. Mostly through fees over past 3-4 years but now contemplating significant income tax increases.” “Our experience in Massachusetts is that the legislature and government has an activist mentality. To the point on having obscure regulations that cover seemingly immaterial transactions. Perfect example of good intent undone by unrealistically over-reaching regulations.”

CEO Comments

“If I were designing Hell for a company, I couldn’t do as good a job as Massachusetts has. We will be leaving the state within the next year.”

“We are moving out of CA, MI, MA and NY in 2013 and terminating our employees there. The regulatory and tax environment has become untenable.”

“Massachusetts is returning to the state of Taxachusetts, thanks to Governor Deval Patrick and the overwhelming Democratic party majority in both houses of the Legislature.”

“Taxation and regulation are always the key barometers. Massachusetts and Oregon are the worst.”

“Massachusetts has been strong economically because of small to mid-size technology driven companies. Legislators moving towards increased regulations and taxes on the group that has been successful (ex: medical device) could begin to undermine the positive direction. While there may be excitement here for early stage technology companies, more established companies may consider growth and expansion elsewhere.”

“MA is continuing its trend of raising taxes in every manner possible. Mostly through fees over past 3-4 years but now contemplating significant income tax increases.”

“Our experience in Massachusetts is that the legislature and government has an activist mentality. To the point on having obscure regulations that cover seemingly immaterial transactions. Perfect example of good intent undone by unrealistically over-reaching regulations.”

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

Previous State: #46 New Jersey Next State: #48 Illinois

J.P. Donlon

J.P. Donlon is Editor Emeritus of Chief Executive magazine.