People and jobs heading for the border

Massachusetts has a horrendous reputation as a place to do business and it’s not getting any better, thanks to its legislature. Massachusetts ranks a mere 37th in Forbes magazine’s just published list of states that are considered the best for business. Massachusetts did even worse in a survey taken earlier this year of the readers of Chief Executive Magazine. Readers ranked the state in the 49th worst place, among the 50 states, to do business in. Only California and New York were rated worse.

According to recent US government statistics, the state of Massachusetts is 41st in job growth. What is going on here? Well, for one thing, the legislature can’t spend taxpayer money fast enough and passes on the burden to business of the part of its social agenda it can’t fund through taxation. The new minimum wage in the state is $8 an hour, which is among the highest rates in the country. Gov. Mitt Romney vetoed that bill but Beacon Hill passed it over his veto. A $295.00 per employee penalty for employers who employ more then 10 people and do not provide health care will take effect in July of 2007. The legislature also passed this bill over Romney’s veto!

Companies just run for the borders when faced with increasing state regulation and taxation! Forbes noted that other industrialized nations have cut their corporate tax rate in an effort to boost economic activity. The US has not. Forbes hints that businesses are also seeking states with more favorable business climates. Virginia was the top-ranked state with top-10 scores in all six categories: business costs, quality of the labor pool, regulatory environment, economic climate, growth prospects and quality of life. Why are people willing to pay astronomical housing prices and taxes to live in Massachusetts?

The fact of the matter is that a lot of people are fed up! Climate, taxes, out of control housing costs and the lack of jobs sparked by companies moving out of Massachusetts seem to be at the top of people’s lists for reasons they say it’s time to go, especially if you add the big dig into the equation. It looks like the fear of paying for that blunder is also in the minds of a lot of Massachusetts residents, with future tax hikes feared. The real problem is past Governors who allowed costs to skyrocket. Tom Riley said on Fox News “how can you go after project managers and make them pay when government officials were aware of the skyrocketing costs and questionable safety concerns and signed off on most of these phases of the project” He says in reference to indictments “if we do something it’s going to stick!”

For years Massachusetts has lived off the top ranking of its labor pool, its health care and educational resources, but now is seeing other states catching up. Those once enjoyed top rankings are no longer enough to keep the state prospering. If the legislature continues to set policies that place the burden for a growing social agenda on business, Massachusetts will continue to lose tax payers and jobs to more accommodating states!

Ed Williams,
Publisher
http://www.zerobrokerfees.com

Forbes Magazine and Eagle Tribune Publishing Company were used for research for this article.