California along with several other states are currently experiencing severe economic recessions because of the massive debts they’re accumulated. To combat the deficit, California has been has been drastically raising taxes and business fees to increase revenues. This strategy however is hurting California as many companies are leaving the state for greener pastures. The #1 state where California business bave been moving is also 2012′s #1 state to do business in. CNBC reports on the trend:
In our sixth annual study,Texas racked up an impressive 1,604 points out of a possible 2,500,with top-10 finishes in six of our 10 categories of competitiveness. Texas has never finished below second place since we began the study in 2007.
In addition to the top spot overall, Texas has the nation’s best Infrastructure,according to our study. It improved to second place for Technology and Innovation, and boasts the third lowest Cost of Living. The state’sWorkforce improved to seventh best from 14th last year. Access to Capitaldeclined a bit, but Texas still finished in the top 10 (eighth). Perhaps most impressive, the Texas economy recovered from a rare stumble last year, when it finished 14th in the category, improving to fifth this year.
Texas endured a wrenching budget crisis last year. While the state is still not out of the fiscal woods, it managed to emerge with its sterling, triple-A bond rating and stable outlook intact.
Since we began ranking the states in 2007, Texas and Virginia have traded places each year in first and second place. But the pattern was broken in 2012.