Chief Executive magazine has done a survey of more than 600 CEO’s to find which states they regarded as the most business friendly. California came in dead last; 51st. They included the District of Columbia.
The list included many criteria for judging. They are:
!. Tax and regulation
2. Workforce quality
3. Living environment
Each of those categories is divided into five subcategories. Tax and regulation, for instance, includes Perceived attitude of government to business, Tax rates, employment regulations, environmental regulations, and tax incentives.
The best rated state was Texas. The three worst were California, New York, and Michigan as #’s 51, 50,and 49. Here you go:
John Fund wrote about this in the Wall Street Journal. As a result of the rating of California at dead last a few CA politicians decided to visit Texas to see why they are losing businesses to them. California Lt. Gov. Gavin Newsom was one of them.
I don’t see this as a partisan issue,” Mr. Newsom told reporters before the group met with Texas Republican Gov. Rick Perry. The former San Francisco mayor has many philosophical disagreements with Mr. Perry, but he admitted he was “sick and tired” of hearing about the governor’s success luring businesses to Texas.”
Sick and Tired? Who does he think he is? That really is how they think in California, isn’t it.
“Hours after the legislators met with Mr. Perry, another business, Fujitsu Frontech, announced that it is abandoning California. “It’s the 70th business to leave this year,” says California business relocation expert Joe Vranich. “That’s an average of 4.7 per week, up from 3.9 a week last year.” The Lone Star State was the top destination, with 14 of the 70 moving there.”
One of the CEO’s who contributes to the poll said:
The leadership of California has done everything in its power to kill manufacturing jobs in this state,” observed another CEO. “As I stated at our annual meeting, if we could grow our crops in Reno, we’d move our plants tomorrow.”
“Texas’ economy is far less volatile due to its having neither a progressive income tax system nor a large tax burden,” concludes “Rich States, Poor States,” a study by the American Legislative Exchange Council. Less volatility also allows Texas to keep expenditures in check. While it shares with California the challenge of a huge budget deficit this year, it’s expected to close it without raising taxes. Texas’s overall spending burden remains below what it was in 1987—a remarkable feat.”