Friday, December 14, 2012

Idaho ranks 31st in survey of entrepreneur-friendly states

Considering everything one hears about the Gem State's favorable climate for entrepreneurial endeavor, one would expect Idaho to have done better than 31st in a survey of states released this week by the Small Business & Entrepreneurship Council.

The Washington-based organization on Thursday released its report, titled “U.S. Business Policy Index 2012: Ranking the States on Policy Measures and Costs Impacting Small Business and Entrepreneurship.”

Idaho came in between West Virginia and Montana in the ranking, which lists the states from most favorable to least favorable. The rankings, which are derived after considering each state’s tax, regulatory and government spending measures, put South Dakota at the top. California was judged to be the least favorable.

Here’s the top 10:
1. South Dakota
2. Nevada
3. Texas
4. Wyoming
5. Florida
6. Washington
7. Alabama
8. Utah
9. Colorado
10. Arizona

The report, which can viewed here,, lists the positives and negatives for each state.

For Idaho, the positives were:
  • Low property taxes.
  • Low consumption-based taxes.
  • Low wireless taxes.
  • Second lowest electricity costs.
  • Very low crime rate.
  • Right to work state.
  • Lowest level of government spending.
  • Lowest level of government debt.
  • Low level of government workers.
  • No death tax.
The negatives included:
  • High personal income, capital gains, and dividend and interest taxes.
  • High corporate income and capital gains taxes.
  • High unemployment taxes.
  • High workers’ compensation costs.