California ranks last on small business policy list

California has the least friendly policy environment for small businesses, according to a new report on policy measures and costs impacting small businesses. 
California has landed on another naughty list, ranking as the state with the least friendly policy environment for small businesses, according to report from an advocacy organization.

The Small Business & Entrepreneurship Council annually ranks the 50 states based on policy measures and costs impacting small businesses. For the second year in a row, California ranked No. 50.

South Dakota topped the list.

"Quite simply, the states are compared and ranked according to how state and local government policies impact costs and incentives for entrepreneurship and investment," Raymond J. Keating, author of the study and chief economist for the Virginia-based organization, said in a news release.

The rankings consider a variety of tax, regulatory and government spending measures.

In a summary, the council explains, "Small businesses in California face a formidable array of policy costs, including the highest state personal income and individual capital gains taxes; high corporate income and capital gains levies; the highest gas tax; high electricity and workers´ compensation costs. The only positives are no death tax and the lowest unemployment taxes."

The Small Business & Entrepreneurship Council is a nonprofit, nonpartisan advocacy and research group.

In October, the Golden State also landed at No. 48 on a list for tax climate. And in May, a group of CEOS ranked California as the worst state for business. In April, the state also landed at the bottom of a list for states and their frienlieness to business. But in an illustration that these lists aren't definitive, California ranked No. 10 as a place to do business, in terms of helping companies relocate.

Roger December 27, 2013 at 04:49 PM
3per: Thanks for sharing this info. Real sad that our State ranks at the bottom for being a good place to start or build a business.
Don Pierce December 29, 2013 at 09:52 AM
It is sad that California has the most hostile climate but YET...it ranks #6 in number of startups per 100,000 people and #1 in total dollars invested. Also #1 in total dollar economy. The reason South Dakota is so loose is that until the oil shale, very few people wanted to live there or start a business there. S.D> may be #1 in percent growth of entrepreneurial growth but that's just shale, and in spite of that, they are #23 and have a long way to go . http://money.cnn.com/gallery/smallbusiness/2013/06/18/best-places-entrepreneurs/6.html http://www.fastcompany.com/3007772/united-states-innovation-ranking-states-and-district-innovation http://en.wikipedia.org/wiki/Economy_of_California I too would like to see a smaller tax burden on business and on everyone and have proposed that the first $50,000 of income for both individuals and businesses be tax-free and continue to adjust that income number to deduct fees and licenses. One very nice thing about the US is that if you don't like California, you can move to South Dakota or Louisiana or any other State...I for one wouldn't mind a few million Californians doing that
novato 3per December 29, 2013 at 04:07 PM
Thanks for that ultimatum Don ( "if you don't like California, you can move to South Dakota or Louisiana or any other State." ) Is that a "very nice thing about the US?" Really? I'm in my early forties, I've been born and raised in California, and it is my children's birthright to live here and enjoy the fruits of my sacrifices for their well-being. There are unique geographical reasons why I choose to remain in the Bay Area, and I'm not going to allow a particular mindset to dominate the entire left coast without opposition. I wanted to draw attention to the hostile business climate created by the one-party here in California, where they will continue to find new ways to tax us to death while businesses flee to other states and countries, and your response is essentially "if you don't like it, leave". How courageous.


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