Vermont has lost ground as a place to do business, falling to number 41 in a ranking of all states, according to CEOs in a national survey. The report favored states in the South and Midwest, while states in the Northeast and Pacific West were at or near the bottom. New Hampshire (21) was the only such state in the top half of the list.
The chief executives surveyed favored pro-growth, low-tax states and ranked Texas, Florida and North Carolina as the best states in the US for business, according to Chief Executive magazine’s 2015 “Best and Worst States for Business” survey. Vermont ranked 41st, down two spots from last year. The survey is predicated primarily on taxes and might best be described as states which are best for business owners (the Vermont profile accompanying the report lists CVPS as one of the state's major businesses; it was bought by Green Mountain Power in 2012.)
In the annual survey, completed by 511 CEOs across the US, states are measured across three key categories to achieve their overall ranking: Taxes and regulations, quality of the workforce, and living environment, which includes such considerations as quality of education, cost of living, affordable housing, social amenities and crime rates.
In 2015, Texas remained the best state for business for the 11th year in row, followed by Florida, North Carolina, Tennessee, and Georgia. Since the recession began in December 2007, 1.2 million net jobs have been created in Texas, while 700,000 net jobs were created in the other 49 states combined. According to one CEO, “California and Oregon are essentially anti-business, whereas Texas and Tennessee do everything possible to make business comfortable and more successful.”
California ranked last in the survey, followed by New York, Illinois, New Jersey and Massachusetts. CEOs gave these states the lowest ratings because of their high tax rates and regulatory environments. Says one CEO, “The good states ask what they can do for you; the bad states ask what they can get from you.”
#41 | Vermont
Vermont’s economy is on a slippery slope with several proposed tax increases on the agenda, and CEOs must now comply with the new increased minimum wage there.
- State GDP
- % Growth ’12-’13: 1.90
- % Growth ’12-’13 v. Nat’l Avg. (1.80%): 0.10
- Unemployment Rate Dec. 2014 %: 4.20
- Comparison with Nat’l Rate (5.60%): -1.40
- Domestic Migration
- Domestic Net Migration 2014: 1407
- Rank: 23
- State Government
- State Debt per Capita Fiscal Year ’13 ($): 5317
- State & Local Gov’t Employees per 10k Residents: 641
- State-Local Tax Burden
- Rate (%): 10.50%
- Compared to Nat’l Avg. (9.80%): 0.70%
Green Mountain Coffee
Central Vermont Public Service Corp.
Ben & Jerry’s
Development Trend Indicator
Passes nation’s first patent-trolling law as it appeals more to entrepreneurs.
Compared with 2014, Idaho has made the largest improvement in the CEO survey, rising 10 spots to number 18, primarily due to high growth rates in GDP, while South Dakota dropped eight places in the 2015 results, even though quality-of-life attractions enhance the state’s low-tax bona fides.
State governments use the survey results to help determine how to improve their regulatory environments to attract more businesses, while corporations use the data to decide where to build facilities and attract vibrant workforces.
In addition to full rankings for all 50 states, the 2015 Best & Worst States for Business survey includes:
- Biggest Gains from 2014
- Biggest Losses from 2014
- Biggest Gains from 2010
- Biggest Losses from 2010
In addition to CEO ratings on taxation and regulation, workforce quality, and living environment, ChiefExecutive.net’s ratings also provide data on state GDP, unemployment rate, domestic migration, and state/local tax burden.
Source: Chief Executive. Greenwich, Conn., May 8, 2015/PRNewswire/ -- Chief Executive magazine. Chief Executive Group produces Chief Executive magazine (published since 1977)—the definitive source that CEOs turn to for insight and ideas that help increase their effectiveness and grow their business—ChiefExecutive.net, and conferences, roundtables and networks that enable top corporate officers to discuss key subjects and share their experiences within a community of peers. The Group also facilitates the annual "Chief Executive of the Year," a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of peers. Visit www.chiefexecutive.net for more information. For complete results, including individual state rankings on multiple criteria, CEO comments, methodology and more, please visit http://go.pardot.com//e/37942/st-worst-states-business-2015-/rc5xy/272056980.