In the newest iteration of Forbes’ Best States for Business report, Maine ranked 49th—one place higher than last year. In fact, Maine has ranked dead last for the past four years.
The 2014 Best States for Business report is the 9th edition of the influential Forbes analysis. The report gathers data from all 50 states, and compares them through six economic categories: “costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life.”
Utah was the top ranked state this year, followed by North Dakota, North Carolina, and Virginia. On the other end of the list, Mississippi dropped down to last place, pushing Maine to the 49th spot.
“The state still suffers from a high tax burden and lousy economic forecast,” said Kurt Badenhausen. “Job and income growth are expected to be among the slowest in the U.S. through 2018.”
This reflects Maine’s low ranking in both the Economic Climate and Growth Prospects categories. Maine’s best category was Quality of Life, where the state ranked 27th. Still, Maine did not score in the top half in any category. In Business Costs, the most heavily weighted category, Maine scored in the bottom ten.
“Much of the blame for the poor showing in recent years can be placed on the state’s high corporate tax burden and lousy job and economic growth forecast,” said Badenhausen.
In a recent report, the Tax Foundation ranked Maine 45th for its corporate tax structure.
Maine’s category rankings are as follows:
Business Costs: 40th
Labor Supply: 36th
Regulatory Environment: 45th
Economic Climate: 48th
Growth Prospects: 48th
Quality of Life: 27th
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Maine has an abundance of industrial and retail space for entrepreneurs and companies; it offers many amenities that attract entrepreneurs. BUT, it also has a regulatory environment which not only stifles innovation, but makes it very expensive. Ironically, Maine has an entire industry built around dealing with environmental regulations, i.e. E2TECH is the association that represents them and the larger ones, like Normandeau work, throughout the U.S.
Maine has an abundance of industrial and retail space for entrepreneurs and companies; it offers many amenities that attract entrepreneurs. BUT, it also has a regulatory environment which not only stifles innovation, but makes it very expensive. Ironically, Maine has an entire industry built around dealing with environmental regulations, i.e. E2TECH is the association that represents them and the larger ones, like Normandeau work, throughout the U.S.
We are near the bottom in no small part because of energy cost and Angus king is going to vote no on keystone to support his wind power friends. He doesn’t care if his vote keeps your heat and power cost high.