The Development Counsellors International recently released its Best and Worst States for Business Survey as a part of its 2011 Winning Strategies Report. The asked 322 corporate executives to name three states that they view as having the worst business climates in the U.S. Some of the states on this list having been long-time spot holders, and many executives listed high tax burden as anti-business regulations as reasons for being turned off by a state.
No. 1: California
The Golden State ranked among the respondents as the worst place for business in the country garnering 70.5% of the votes. The state and local tax burden of 11.8% of income is higher than the national average of 9.8%, according to the Tax Foundation.
No. 2: New York
New York came in as the second-worst state for business, gathering 46.5% of the votes. The Tax Foundation ranks New York among the worst tax environments in the country, which likely accounts for its poor business climate ranking.
No. 3: Illinois
Illinois famously increased personal income taxes by 67% and corporate income taxes by 45.9% earlier this year, making some businesses flee the state. Illinois took home 24.4% of the votes.
No. 4: New Jersey
The Garden state has among the highest property taxes in the U.S., helping it cinch the fourth-place spot with 23.5% of the votes.
No. 5: Michigan
The state’s economy took a massive hit when the domestic auto market plunged during the financial crisis, and businesses are still wary of the state’s economic health. The state took home 16.1% of the votes.
During a time where many states are struggling to close widening budget deficits, some states are making matters worse by being perceived as having unfriendly business environments.