(Center Square) – Pennsylvania’s business environment ranks 10th worst for startups, according to WalletHub Research Published this week.
Keystone was ranked 43rd in the country for “the best place to start a business.” That is, the other 42 states boasted more friendly growth policies, access to wider resources, and lower costs.
Researchers measure 28 key indicators of startup success in all 50 states and survive, including the percentage of workers engaged, average business revenue growth, human capital availability, and labor costs. Added additional weights to the more important elements for.
The results show that the 10 best states for a successful startup are Texas, Georgia, California, Florida, Idaho, Utah, Colorado, North Dakota, North Carolina, and Massachusetts.
The worst 10 include Virginia, Delaware, Pennsylvania, Missouri, Alaska, Wyoming, West Virginia, Rhode Island, Connecticut and New Jersey.
Most of Pennsylvania’s indicators fell in the middle of the pack, but when it comes to per capita startups, employment growth from 2017 to 2021, working-age population growth, corporate taxes, and total effective status. , Fall to the bottom 10. Local tax rate for “mature headquarters”.
Chia-Li Chien, an assistant professor at California Lutheran University, said the latter may not have much of an impact on a company’s choice of location if other indicators outperform the higher rates.
“For example, when Amazon chose Crystal City, Virginia as its second headquarters,” she said. “Available talent wasn’t necessarily the corporate tax rate, but one of the biggest reasons for developing a second headquarters.”
Pennsylvania has the third highest corporate tax rate in the country at 9.99%. The combined state and federal corporate tax rates are 28.9%, the third highest tax rate among the 50 states and the District of Columbia. 2020 Survey by Tax Foundation..
Governor Tom Wolf, as part of his currently non-functional budget Said The state needs to reduce the company’s net income tax rate to 8.99% in 2022 and gradually reduce it to 5.99% by 2026.
But a simultaneous plan to raise the personal income tax of the top third of the state’s income earners (some critics said it included more than 866,000 small businesses) sank that idea.
Martha Matale, director of business programs at the University of Maryland at Hagerstown, agreed that taxation does not necessarily mean the catastrophe or success of a new venture.
“These policies play a role, but they are not the only consideration when starting a business,” she said. “There are also regional policies, incentives and support systems that play a major role.”
Pennsylvania is one of the worst states for start-ups, findings | status
Source link Pennsylvania is one of the worst states for start-ups, findings | status