Taxes, unions and regulation make states hostile to business

[Geee]

Washington Examiner:

Illinois may share borders with Wisconsin and Indiana, but the states are moving in opposite directions. As Republican Govs. Scott Walker of Wisconsin and Mitch Daniels of Indiana have sought to reduce the regulatory burden on businesses and keep spending at sustainable levels, Illinois Gov. Pat Quinn, a Democrat, is trying to tax his state out of its disastrous fiscal condition. Just last year, for instance, Illinois hiked individual income taxes 66 percent and corporate taxes by 45 percent.

Such choices have consequences. When Chief Executive magazine released its annual rankings of state business climates this week, Indiana placed fifth. Wisconsin moved up four slots to No. 20. For the second year in a row, Illinois finished third-to-last at No. 48.

The magazine's rankings, based on surveys of 650 business leaders, are a telling example of how liberal tax and regulatory policies make it harder for businesses to operate. Seventeen of the 20 most business-friendly states in this ranking have right-to-work laws, which forbid compulsory union membership. By contrast, none of the bottom 20 states are right-to-work states. Three of the top five states -- Texas, Florida and Tennessee -- have no income tax. The bottom four states are all high-tax states (California, New York, Illinois and Massachusetts).

This year, Texas maintained its lead as the state with the most business-friendly environment. California, which has punished businesses with a web of environmental regulations and a smothering welfare state financed by backbreaking taxes, finished at the bottom of the heap. Businesses are fleeing this beautiful state for its terrible policies. "According to Spectrum Locations Consultants, 254 California companies moved some or all of their work and jobs out of state in 2011, an increase of 26 percent over the previous year and five times as many as in 2009," the magazine reports.